The Postal Service has announced its financial results for the first quarter of fiscal year 2026 (Oct. 1-Dec. 31). Here are some highlights:
• Revenue. Total operating revenue was $22.2 billion, a 1.2 percent decrease compared with the same quarter the previous fiscal year. First-Class Mail revenue increased 1 percent, while Marketing Mail revenue decreased 2.7 percent. Shipping and packages revenue decreased 0.2 percent.
• Volume. Total volume was 28.3 billion pieces, down 9.4 percent compared with the same quarter one year ago. First-Class Mail volume declined 6.1 percent, while Marketing Mail volume declined 10.9 percent. Shipping and packages volume declined 12.1 percent.
• Expenses. Under generally accepted accounting principles, total operating expenses were $23.5 billion for the quarter, an increase of 4.6 percent compared with the same quarter one year ago. The overall increase in operating expenses was primarily due to the impact of discount rates on workers’ compensation costs, increases in retiree health benefits costs, other operating costs and transportation costs.
• Net loss. Net loss for the quarter totaled $1.3 billion, compared with net income of $144 million for the same quarter last year. Results for the quarter were affected by an increase in workers’ compensation expenses of $634 million, an operating revenue decrease of $264 million, an increase in retiree health benefits expenses of $175 million, higher other-operating expenses of $169 million and higher transportation expenses of $43 million.
“While we are pleased that the holiday quarter was quite strong with regard to service improvement as measured by our on-time delivery scores and other important service performance metrics, we continue to face difficult systemic financial and business model headwinds,” Postmaster General David Steiner said.
“To right our financial ship, we are aggressively pursuing growth strategies — which include creating new opportunities for businesses to leverage our vast last-mile delivery network — and driving greater efficiencies throughout our operations. We are convinced that these efforts, if combined with needed regulatory, administrative and legislative changes, can meet the needs of the American public and return the Postal Service to long-term financial stability and strength.”
The Postal Service’s Feb. 5 news release has more information.
