UNITED PARCEL SERVICE INC Earnings Summary — Q1 2026

• Revenue for Q1 2026 fell to $21.2B, a 1.6% YoY decline, continuing a trend of multi-year stagnation.
• Net income dropped sharply to $864M, representing a 27.2% YoY decrease and sequential halving from Q4 2025.
• Operating income of $1.27B is down from $1.67B in the same period last year, reflecting ongoing margin erosion.
• Selling, General & Admin costs remained elevated at $12.2B (57.6% of revenue), limiting bottom-line recovery.
• The 'better not bigger' strategy is struggling to offset volume losses from major clients like Amazon.
• The company's cost structure remains rigid despite lower volumes, impacted by 2023 labor contract headwinds.

Management is focused on a 'digital first' network and high-margin segments like healthcare and SMEs to stabilize margins and offset customer volume shifts.

Deteriorating

A year-over-year revenue decline of 1.6% and a severe 27% drop in net income suggest that the post-pandemic stabilization phase has turned into a fundamental efficiency struggle.

The outlook remains cautious as the company grapples with high fixed costs, labor expense headwinds, and declining operating income trends that have persisted since 2022.