UPS Beats Q1 2025 Estimates with Strong Earnings, Stock Jumps

United Parcel Service (UPS) delivered stronger-than-expected first-quarter 2025 results, driving its stock up 4.8%. The global logistics giant reported adjusted earnings per share of $1.49, exceeding the analyst consensus of $1.44. Quarterly revenue totaled $21.5 billion, topping expectations of $21.22 billion, though slightly down 0.7% from $21.7 billion a year ago.

The U.S. Domestic segment saw a 1.4% revenue increase, boosted by higher air cargo demand and a 4.5% rise in revenue per piece, partially offset by lower package volume. Meanwhile, UPS’s International segment grew revenue by 2.7%, supported by a 7.1% jump in average daily volume. The company's non-GAAP adjusted consolidated operating margin stood at 8.2% for the quarter.

However, UPS’s Supply Chain Solutions segment saw a 14.8% revenue decline due to the divestiture of Coyote. Despite the drop, the segment reported a 3.6% operating margin on an adjusted basis.

CEO Carol Tomé emphasized the company’s resilience amid global economic shifts, stating, “As a trusted leader in global logistics, we will leverage our integrated network and trade expertise to assist our customers as they adapt to a changing trade environment.”

While UPS surpassed Wall Street expectations, it chose not to update its full-year guidance, citing ongoing macroeconomic uncertainties. The cautious stance underscores broader concerns across the logistics and shipping industry as companies navigate inflation, shifting trade dynamics, and global supply chain pressures.

UPS remains well-positioned with its robust operational network, but investors should watch for potential headwinds in the months ahead. The company’s focus on adaptability and customer service may help it maintain momentum despite external challenges.