UPS Q1 Earnings Beat Expectations, Shares Fall 3% in Premarket

United Parcel Service on Tuesday posted first-quarter earnings results that beat on the top and bottom lines. Shares of the delivery giant sank roughly 3% in premarket trading. Here's how the company performed in its first quarter, compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Earnings per share: $1.07 adjusted vs. $1.02 expected Revenue: $21.2 billion vs. $20.99 billion expected For the quarter ended March 31, UPS reported net income of $864 million, or $1.02 per share, compared with $1.19 billion, or $1.40 per share, a year prior. Adjusting for one-time items, the company reported a profit of $906 million, or $1.07 per share. "The first quarter of 2026 marked a critical transition period for UPS in which we needed to flawlessly execute several major strategic actions and we delivered," CEO Carol Tomé said in a statement. "With that behind us, we expect to return to consolidated revenue and operating profit growth, and adjusted operating margin expansion in the second quarter of this year." For its full-year 2026 outlook, the company reaffirmed its consolidated financial estimate of $89.7 billion in revenue and non-GAAP adjusted operating margin of 9.6%. In its domestic segment, UPS said revenue declined 2.3%, primarily due to an expected decline in volume. UPS is also in the midst of a turnaround plan and enhancing the automation in its network. In the first three months of the year, UPS said it achieved $600 million in cost savings from its network efficiency program, with expectations to reach $3 billion in year-over-year savings in 2026. Company executives will hold a conference call at 8:30 a.m. ET.