UPS's first quarter 2026 revenue of $21.2B beats estimates, though domestic margins contract as it prioritizes price over volume.

UPS reported first quarter 2026 consolidated revenue of $21.2 billion and adjusted diluted EPS of $1.07, slightly exceeding analyst expectations. The company reaffirmed its full-year 2026 guidance for both revenue and adjusted operating margin.

Key Highlights

• The U.S. Domestic segment's adjusted operating margin contracted to 4.0% from 7.0% a year ago, as a 2.3% revenue decline was driven by lower volumes.
• Pricing power remained a key theme, with U.S. Domestic revenue per piece increasing by 6.5% and International revenue per piece growing 10.7%.
• Management reaffirmed its full-year 2026 guidance, including revenue of approximately $89.7 billion and an adjusted operating margin of approximately 9.6%.