Shares of United Parcel Service Inc (NYSE:UPS) fell 3.6% on Tuesday after the delivery giant posted mixed first-quarter results, with revenue and adjusted earnings topping estimates but continued weakness in its US package business weighing on sentiment.
UPS reported first-quarter 2026 consolidated revenue of $21.2 billion, compared with estimates of $20.99 billion. Adjusted diluted earnings per share came in at $1.07, above expectations of $1.03.
Net income measures were affected by restructuring charges, with GAAP diluted EPS at $1.02, including $42 million in after-tax transformation costs.
The company said adjusted consolidated operating profit was $1.32 billion, while adjusted operating margin stood at 6.2%.
The company expects consolidated revenue and operating profit to return to growth in the second quarter, along with an expansion in adjusted operating margin, according to CEO Carol Tomé.
Segment performance showed continued pressure in the core US business. US domestic revenue fell 2.3% to $14.13 billion, while operating profit came in at $565 million with a margin of 4.0%. UPS said revenue per piece in the segment rose 6.5%, suggesting pricing gains partially offset lower volumes.
International operations provided a brighter spot, with revenue rising 3.8% to $4.54 billion. Operating profit in the segment reached $551 million, with a 12.1% margin. Revenue per piece rose 10.7%.
The Supply Chain Solutions unit posted revenue of $2.54 billion, down 6.5% year-over-year, with operating profit of $206 million and an 8.1% margin.
For full-year 2026, UPS reaffirmed guidance for revenue of about $89.7 billion, roughly in line with estimates, and an adjusted operating margin of around 9.6%. The company also forecast capital expenditures of about $3 billion and dividend payments of approximately $5.4 billion, with an effective tax rate of 23%.
Despite the earnings beat, investors appeared focused on ongoing volume pressure in the U.S. domestic market and muted growth in the company’s largest segment.