UPS shares fall after quarterly profit beats estimates, US volumes still weak

UPS reported first-quarter 2026 consolidated gross of $21.2 billion, compared with estimates of $20.99 billion. Adjusted diluted net per stock came successful astatine $1.07, supra expectations of $1.03.

Net income measures were affected by restructuring charges, with GAAP diluted EPS astatine $1.02, including $42 cardinal successful after-tax translation costs.

The institution said adjusted consolidated operating nett was $1.32 billion, portion adjusted operating borderline stood astatine 6.2%.

The institution expects consolidated gross and operating nett to instrumentality to maturation successful the 2nd quarter, on with an enlargement successful adjusted operating margin, according to CEO Carol Tomé.

Segment show showed continued unit successful the halfway US business. US home gross fell 2.3% to $14.13 billion, portion operating nett came successful astatine $565 cardinal with a borderline of 4.0%. UPS said gross per portion successful the conception roseate 6.5%, suggesting pricing gains partially offset little volumes.

International operations provided a brighter spot, with gross rising 3.8% to $4.54 billion. Operating nett successful the conception reached $551 million, with a 12.1% margin. Revenue per portion roseate 10.7%.

The Supply Chain Solutions portion posted gross of $2.54 billion, down 6.5% year-over-year, with operating nett of $206 cardinal and an 8.1% margin.

For full-year 2026, UPS reaffirmed guidance for gross of astir $89.7 billion, astir successful enactment with estimates, and an adjusted operating borderline of astir 9.6%. The institution besides forecast superior expenditures of astir $3 cardinal and dividend payments of astir $5.4 billion, with an effectual taxation complaint of 23%.

Despite the net beat, investors appeared focused connected ongoing measurement unit successful the U.S. home marketplace and muted maturation successful the company’s largest segment.