UPS earnings analysis
What we found in UPS's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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%.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Surpass Estimates
- Q1 2026 revenue of $21.2B exceeded the estimate of $20.995B by 1.0%.
- Non-GAAP EPS Outperformance
- Adjusted diluted EPS of $1.07 was higher than the estimated EPS of $1.03.
- CapEx Increase
- Capital expenditures increased to $1.03B, or 4.9% of revenue, up from 4.1% in Q1 2025.
- Cash Returned to Shareholders
- $1.4B was returned to shareholders through dividends.
- Fuel Surcharges Improved
- Fuel surcharge revenue increased by $146 million due to higher fuel price impacts.
- Continued Investment in Healthcare and International
- Expansion in healthcare logistics and enhancements in international operations, particularly in Asia.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Volume Declines Impact Revenue
- Average daily package volume decreased by 7.7% year-over-year, affecting overall revenue.
- Increased Operating Expenses
- Total operating expenses rose 0.3% to $19.9B, driven by higher facility costs and excess staffing expenses.
- Transformation Costs
- Transformation strategy costs totaled $55M, impacting net income and EPS.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.07
- Operating margin
- 6.0%
- Segment
- U.S. Domestic Package
- Segment
- International Package
- Segment
- Supply Chain Solutions
What they said about what is next.
Management reaffirms full-year 2026 targeted revenue of approximately $89.7 billion and non-GAAP adjusted operating margin of approximately 9.6%.
The filing reads worse than the one before it.
What came before.
- 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.…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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