UPS Beats Q1 Estimates but Net Income Drops 27% Year-Over-Year

UPS reported adjusted earnings per share of $1.07 for the first quarter of 2026, beating the consensus estimate of $1.02. However, net income fell sharply to $864 million from $1.19 billion in the same period last year, a decline of approximately 27%. The delivery giant's stock declined following the earnings release, as investors focused on the year-over-year profit drop rather than the earnings beat. The results reflect ongoing challenges in the logistics sector, including softer demand and higher operational costs. UPS did not provide specific guidance for the remainder of the year in the release.