United Parcel Service (UPS) reported first-quarter earnings on Tuesday that beat Wall Street expectations on both the top and bottom lines.

Despite the stronger-than-expected results, shares of the delivery giant fell around 3% in premarket trading, News.Az reports, citing CNBC.

According to data from LSEG, UPS reported adjusted earnings per share of $1.07, exceeding the $1.02 expected by analysts. Revenue came in at $21.2 billion, also above the $20.99 billion forecast.

For the quarter ended March 31, the company posted net income of $864 million, or $1.02 per share, down from $1.19 billion, or $1.40 per share, in the same period a year earlier. On an adjusted basis, UPS reported profit of $906 million, or $1.07 per share. Revenue declined slightly from $21.5 billion a year ago to $21.2 billion.

“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.”

The company reaffirmed its full-year 2026 outlook, maintaining its revenue forecast of $89.7 billion and a non-GAAP adjusted operating margin of 9.6%.

In its domestic segment, UPS reported a 2.3% revenue decline, driven mainly by an expected drop in shipping volume.

UPS is also continuing its turnaround strategy and expanding automation across its logistics network. In the first quarter, the company achieved $600 million in cost savings through its network efficiency program and expects to reach $3 billion in year-over-year savings in 2026.

News.Az 

By Nijat Babayev