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UPS Profit Dips, But Beats Wall Street Expectations
28 Apr
Summary
- First-quarter profit declined year-over-year but surpassed analyst forecasts.
- Revenue also fell slightly but exceeded Wall Street's expectations.
- Company expects to return to growth in the second quarter following transformation efforts.
United Parcel Service experienced a decline in its first-quarter financial results, reporting lower profit and revenue than in the same period last year. However, the cargo handler managed to surpass analyst expectations on both fronts. The company's profit for the quarter stood at $864 million, or $1.02 per share, with adjusted earnings at $1.07 per share, exceeding the consensus estimate of $1.01.
Revenue for the quarter slipped 1.6% to $21.2 billion, also coming in ahead of Wall Street's projections. CEO Carol Tomé highlighted strategic actions taken during the quarter that are expected to propel UPS back to consolidated revenue and operating profit growth, along with improved operating margins, in the second quarter of 2026. These initiatives include restructuring operations, cutting tens of thousands of roles, and increasing automation to achieve substantial cost savings.
The company confirmed its full-year revenue outlook of approximately $89.7 billion, aligning with analyst forecasts. UPS anticipates capital expenditures of around $3 billion and plans for dividend payments totaling approximately $5.4 billion, pending board approval. These results were announced as shares experienced a slight decrease in premarket trading.
