United Parcel Service (UPS) has reported its financial results for the first quarter of 2026, highlighting growth in its international business alongside softer performance in domestic operations. Revenue from the company’s international package segment increased by 3.8% year-on-year to $4.4 billion, reflecting steady demand in global shipping markets. However, operating profit for the segment declined by 14.4% to $547 million, primarily due to a 7% rise in operating expenses during the period.
In contrast, the domestic segment recorded a decline in both revenue and profitability. Revenue fell by 2.3% to $14 billion, while operating profit dropped significantly by 47.4% to $515 million. Operating expenses for the domestic business rose marginally by 1%, indicating pressure on margins despite relatively stable cost growth.
The company’s supply chain solutions segment reported revenue of $2.4 billion, representing a decrease of 6.5% compared to the same period last year. Despite the revenue decline, operating profit for the segment increased sharply to $205 million, supported by a 12.6% reduction in expenses and improved operational efficiency. Overall, UPS reported total revenue of $21.1 billion for the quarter, a decrease of 1.6% year-on-year. Total operating profit stood at $1.3 billion.
Carol Tomé, Chief Executive Officer of UPS, acknowledged the efforts of employees worldwide in executing key strategic initiatives during the quarter. She described the period as a transition phase, during which the company implemented several important actions to support long-term transformation.
Ms Tomé added that with these initiatives now in place, the company expects to return to growth in revenue and operating profit, along with improved operating margins, beginning in the second quarter of 2026. In a related development, research conducted by the Chaddick Institute for Metropolitan Development at DePaul University highlighted the scale of UPS’s global logistics network. The company’s hub at Louisville Muhammad Ali International Airport was identified as the largest express air cargo hub in the world in terms of daily flights and cargo capacity.
The first quarter results reflect a mixed performance for UPS, with international growth partially offset by domestic challenges. The company continues to focus on strategic execution and operational efficiency as it positions itself for improved performance in the coming quarters.
