United Parcel Service, Inc. (UPS) reported solid first-quarter 2026 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Quarterly earnings per share (excluding 5 cents from non-recurring items) of $1.07 beat the Zacks Consensus Estimate of $1.04 but declined 28.2% year over year. Revenues of $21.2 billion surpassed the Zacks Consensus Estimate of $21 billion but decreased 1.6% year over year.
United Parcel Service, Inc. Price, Consensus and EPS Surprise
United Parcel Service, Inc. price-consensus-eps-surprise-chart | United Parcel Service, Inc. Quote
Other Aspects of Q1 Earnings Report
U.S. Domestic Package revenues of $14.1 billion (above our estimate of $13.8 billion) decreased 2.3% year over year, owing to an expected decline in volume. Revenue per piece grew 8.3% year over year. Segmental operating profit (adjusted) fell 44.1% year over year to $565 million. The adjusted operating margin for the segment was 4%.
Revenues in the International Package division totaled $4.54 billion (above our estimate of $4.38 billion), which increased 3.8% year over year, owing to a 10.7% increase in revenue per piece. Segmental operating profit (adjusted) totaled $551 million, down 15.7% year over year. The adjusted operating margin for the segment was 12.1%.
Supply Chain Solutions’ revenues of $2.53 billion (below our estimate of $2.81 billion) decreased 6.5% year over year, owing to a decline in volume in the Mail Innovations business. Operating profit (on an adjusted basis) rose more than 100% year over year to $206 million. The adjusted operating margin for the segment was 8.1%.
The overall adjusted operating margin was 6.2%.
UPS’ 2026 Outlook Reaffirmed
Management has reinstated full-year 2026 sales guidance, projecting revenues of approximately $89.7 billion, above the Zacks Consensus Estimate of $89.3 billion as well as the 2025 reported figure of $88.7 billion.
Adjusted operating margin is still expected to be around 9.6%. Capital expenditures are estimated to be around $3 billion, with dividend payments expected to be around $5.4 billion (subject to board approval). The effective tax rate is expected to be around 23%.
Currently, UPS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation Companies
Delta Air Lines (DAL) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate and improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services JBHT posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
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United Parcel Service, Inc. (UPS): Free Stock Analysis Report
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