We reported Q1 2026 earnings on April 28, as our CEO, Carol Tomé, detailed a “critical transition period for our company,” and highlighted that “we’ve now had three quarters in a row of performance exceeding our expectations.”
But what exactly is driving that momentum for our business?
To get smart fast and better understand where we’re heading as a company, here are the top six takeaways from our Q1 earnings report:
1) The 2nd half of 2026 marks an inflection point in our longer-term strategy
When thinking about our roadmap for 2026, it’s important to contextualize our strategic actions this year.
We’re in the final months executing our Amazon glide down plan. We completed the transition to shift a portion of Ground Saver packages back to the United States Postal Service for last‑mile delivery. And we launched a voluntary driver buyout program.
Our actions are moving us toward a more differentiated and profitable U.S. small package business, with the second half of 2026 expected to be the inflection point.
2) We are focusing on moving the right packages and the right mix of volume through our network
How is UPS winning in the marketplace of today and tomorrow?
“We’re winning through innovative and differentiated capabilities like RFID labeling at customer locations, end-to-end cold chain solutions, Roadie for same-day and big and bulky deliveries, Happy Returns for box-less label-less returns and much more,” Carol explained during the earnings call.
“We’re focused on premium segments like SMB (Small and Medium-Sized Business), B2B (Business-to-Business) and complex healthcare,” she added.
Nobody does end-to-end logistics better than UPS.
3) We are becoming more agile, scalable and globally competitive
“We already run the industry’s most efficient integrated network, and with expanded automation and robotic deployments, we will make the network even more productive and adaptable. That added agility will create the strategic capacity we need to fuel premium volume growth over the long term,” Carol shared.
This transformation is taking place around the world. For example, we’re speeding up our ground network in Europe to win premium commercial volume – we also expanded our operations in South Korea and Taiwan to bolster global supply chains, particularly in the manufacturing, high tech and healthcare sectors.
4) We needed flawless execution of several major strategic actions – and we delivered
This long-term strategy is about more than efficiency – it’s fuel for future growth and innovation. Our blueprint provides flexibility to pivot faster and meet customers where they need us.
“We’re also doing a better job retaining and growing our existing customers,” Carol said. “Our customer-first strategy focuses on what matters most, and that’s speed, ease and reliability.”
Powering that best-in-class service is a dedicated group of UPSers delivering what matters most to the communities they serve around the world.
Carol said she was “incredibly proud” of our people who “stayed focused, pushed our transformation forward and upheld the exceptional service our customers rely on.”
5) We reaffirmed full-year 2026 consolidated financial targets
At UPS, we have a high say-do ratio – we do what we say we're going to do.
As such, we reaffirmed our full year 2026 consolidated financial targets of revenue of approximately $89.7 billion and non-GAAP adjusted operating margin of approximately 9.6%.
6) Even with a dynamic global environment, our business performed exceptionally well
“While the macroeconomic environment is different now compared to our expectations at the beginning of the year,” Chief Financial Officer Brian Dykes said, “we have been quick to adjust to the changing conditions, and we’re continuing to closely monitor the broader impacts across the global economy.”
Long-term investments and strategic actions we launched years ago – greater automation and prioritizing end-to-end logistics – are enabling the agility and flexibility we need to continue serving our customers through a dynamic external environment.
Put another way: The network of the future is the network of right now.