United Parcel Service Inc. (UPS) reported its first-quarter 2025 earnings, surpassing expectations with an adjusted earnings per share of $1.49 and sales of $21.50 billion, beating estimates of $1.38 and $21.05 billion, respectively. Despite the positive results, the company's shares cooled off after an initial pop, influenced by the announcement of job cuts and facility closures. UPS is undergoing a major network reconfiguration, which includes cutting 25,000 jobs and closing 73 buildings in 2025. The company reported a slight decrease in consolidated revenue by 0.7% compared to the first quarter of 2024, with operating profit increasing by 0.9% to $1.8 billion. International Shipment revenue increased by 9%, while Domestic Cargo revenue saw a significant spike of 965%. The company's CFO highlighted that international shipments from China to the US are expected to decline by less than 25%, but this is anticipated to be offset by material improvements in shipments from China to the rest of the world and from the rest of the world to the US. This shift is expected to impact UPS's most profitable shipping lane, China-to-US, leading to a profit headwind. UPS provided a Q2 operating margin guidance of 9.3%, which fell short of every analyst's estimate.