UPS released its first quarter earnings report for 2026. The company brought in $21.2 billion in revenue and made $1.3 billion in profits. UPS has reduced volume, especially Amazon deliveries. But CEO Carol Tomé told investors that downsizing is coming to an end.

UPS expects volume to stabilize in the second half of 2026. For the year, UPS projects $89.7 billion in revenue and profits of $8.6 billion – matching last year’s totals.

“Better, Not Bigger”

UPS’s “Better, Not Bigger” strategy tries to maximize profit by reducing package volume but increasing the amount the company makes on each package.  

Practically speaking, this means focusing on commercial deliveries and reducing residential deliveries – especially Amazon. 

UPS package volume in the U.S. was down 8% in the first quarter, but the revenue per package increased by 6.5%. 

A majority of the decline came from UPS cutting cheaper e-commerce deliveries like Amazon. Amazon used to make up 13% of UPS revenue, but it accounted for just 8.8% of revenue in the first three months of this year.

Instead, UPS focused on more profitable packages like small and medium businesses, UPS Healthcare, and Supply Chain Solutions.

UPS’s share of business-to-business package volume rose to 45.2%, the company's highest first-quarter performance in six years.

Better for Wall Street, Not Workers

“Better, Not Bigger” has created higher rates of profit for UPS shareholders, but chaos on the ground for Teamsters through layoffs, building closures, and uncertainty. 

UPS closed 23 buildings in the first quarter of 2026, and plans to close 27 more buildings this year, most of which will be closed in the second quarter.

UPS reported that around 7,500 drivers left the company as a result of the buyout program.

Volume Stabilizing, Earnings Strong

UPS told investors a chaotic period will be coming to an end this year, and volume will stabilize in the second half of 2026. 

“The USPS transition has been completed. The Amazon glide down and network reconfiguration will wrap up by the end of June,” said Brian Dykes, UPS’s Chief Financial Officer (CFO).

This puts the Teamsters in a strong position heading into contract negotiations in 2028.  

For more information on “Better not Bigger” and how Teamsters are fighting back, check out our UPS Teamsters United webinar and resources on protecting jobs by following the methods and enforcing the contract.