10-K · February 17, 2026
UPS reported total revenue of $88.7 billion in 2025 while executing a Customer First, People Led, Innovation Driven strategy that emphasizes higher‑yield customers, healthcare, SMBs and international expansion.…
Earnings analysis · 10-Q
UPS earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
UPS's Q1 2026 results showed declining revenue and earnings compared to Q1 2025, with consolidated revenue decreasing by 1.6% to $21.2B. Operating profit fell 23.9%, driven by lower package volumes and increased…
Read full summary
UPS's Q1 2026 results showed declining revenue and earnings compared to Q1 2025, with consolidated revenue decreasing by 1.6% to $21.2B. Operating profit fell 23.9%, driven by lower package volumes and increased expenses related to transformation and outsourcing initiatives, leading to a diluted EPS of $1.02, down 27.1% year-over-year. Management reaffirmed guidance for approximately $89.7 billion in revenue for the full year with a targeted non-GAAP operating margin of 9.6%.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.07
- Operating margin
- 6.0%
- Segment
- U.S. Domestic Package
- Segment
- International Package
- Segment
- Supply Chain Solutions
What stood out
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Revenue Surpass Estimates
Q1 2026 revenue of $21.2B exceeded the estimate of $20.995B by 1.0%.
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Non-GAAP EPS Outperformance
Adjusted diluted EPS of $1.07 was higher than the estimated EPS of $1.03.
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CapEx Increase
Capital expenditures increased to $1.03B, or 4.9% of revenue, up from 4.1% in Q1 2025.
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Cash Returned to Shareholders
$1.4B was returned to shareholders through dividends.
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Fuel Surcharges Improved
Fuel surcharge revenue increased by $146 million due to higher fuel price impacts.
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Continued Investment in Healthcare and International
Expansion in healthcare logistics and enhancements in international operations, particularly in Asia.
What to watch
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Volume Declines Impact Revenue
Average daily package volume decreased by 7.7% year-over-year, affecting overall revenue.
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Increased Operating Expenses
Total operating expenses rose 0.3% to $19.9B, driven by higher facility costs and excess staffing expenses.
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Transformation Costs
Transformation strategy costs totaled $55M, impacting net income and EPS.
Management's outlook
Management reaffirms full-year 2026 targeted revenue of approximately $89.7 billion and non-GAAP adjusted operating margin of approximately 9.6%.
Earlier filings 4
10-Q · August 6, 2025
UPS reported consolidated revenue of $21,221 million for the quarter ended June 30, 2025, modestly below prior-year quarter revenue of $21,818 million. Operating profit declined to $1,822 million and diluted EPS fell to…
10-K · February 18, 2025
UPS reports scale and network strength — 5.7 billion packages delivered in 2024 and total revenue of $91.1 billion — while executing network and workforce restructurings (reduced ~14,000 positions under 'Fit to Serve')…
10-Q · August 7, 2024
UPS reported Q2 revenue of $21,818 million (down $237 million vs. $22,055 million in Q2 2023) and diluted EPS of $1.65 (down from $2.42 in Q2 2023). Operating profit fell to $1,944 million from $2,780 million a year…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.