ZTO

ZTO ExpressZTO reported second-quarter 2026 earnings of 56 cents per share, which improved from the year-ago quarter. Total revenues of $2.14 billion also improved from the year-ago reported quarter. ZTO Express (Cayman) Inc. price-consensus-eps-surprise-chart | ZTO Express (Cayman) Inc. Quote Mr. Meisong Lai, founder, chairman and chief executive officer of ZTO, stated, "In the second quarter of 2026, ZTO remained focused on elevating service quality and customer experience, improving operational efficiency, and fostering fair, transparent network policies. We handled a total parcel volume of 10.5 billion, representing a 6.5% year–over–year increase, outpacing the industry average by 2.3 percentage points. Adjusted net income reached RMB 3.1 billion. Daily average retail parcel volume continued to grow faster than traditional e–commerce parcel volumes. This structural shift boosted parcel volumes while enhancing overall profit margins." Revenues from the core express delivery business increased 23% year over year, owing to 6.5% growth in parcel volume and a 15.5% increase in parcel unit price. Within core express delivery revenues, key account revenues, generated by direct sales organizations, surged 63.6% year over year owing to an increase in e-commerce return parcels. Revenues from freight forwarding services rose 21.1% year over year. Revenues from sales of accessories, largely consisting of sales of thermal paper for digital waybills, fell 1.7% year over year. Other revenues were mainly derived from financing services. Gross profit increased 26.8% from the year-ago reported quarter. Gross margin rate improved to 25.7% from 24.9% in the year-ago period. Total operating expenses were RMB505.3 million ($74.5 million) compared with RMB469.3 million in the same period last year. ZTO Express exited the first quarter of 2026 with cash and cash equivalents of $1.65 billion compared with $1.43 billion at the end of the prior quarter. In March 2026, ZTO Express’ board also approved a new share repurchase program (the "New Program"), authorizing share repurchases of up to $1.5 billion of its shares over 24 months, effective from March 20, 2026 to March 20, 2028. In the second quarter of 2026, ZTO Express had repurchased an aggregate of 6,161,216 ADSs for $138 million (including repurchase commissions) under the New Program. The company is left with $1.36 billion of capacity under the authorization. Based on current market and operating conditions, ZTO Express updates its 2026 parcel volume guidance. ZTO Express now expects parcel volume in the range of 40.8 billion to 42.4 billion (reflecting 6-10% year-over-year growth). The prior provided guidance was in the range of 42.37 billion to 43.52 billion. Currently, ZTO Express carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delta Air Lines (DAL) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability. Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand. United Airlines Holdings, Inc. (UAL) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs. J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%. Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Parcel Volume: 10.49 billion parcels in Q2 2026, up 6.5% year-over-year, with market share expanding by 0.4 percentage points. Total Revenue: RMB14.5 billion, up 23% year-over-year. Adjusted Net Income: RMB3.1 billion, up 50.3% year-over-year, benefiting from a RMB344.3 million tax refund. Operating Income: RMB3.23 billion, up 30.4% year-over-year, with operating margin increasing 1.3 points to 22.2%. Gross Profit: RMB3.7 billion, up 26.8% year-over-year, with gross margin expanding 0.8 points to 25.7%. Core Express Delivery ASP: Increased RMB0.19, or 15.5% year-over-year, driven by higher KA volume mix and higher average weight per parcel. Total Cost of Revenue: RMB10.8 billion, up 21.7% year-over-year. Combined Unit Sorting and Transportation Costs: Decreased 3.2%, or RMB0.02, year-over-year, despite oil price pressures. Unit Line Haul Transportation Cost: Decreased 3.7% to RMB0.32. Unit Sorting Cost: Decreased 0.6% to RMB0.24. SG&A Expenses (excl. SBC): Decreased 10.5% to RMB555.5 million, representing 3.8% of revenue. Operating Cash Flow: RMB4.6 billion for the quarter. Adjusted EBITDA: Increased 20% to RMB4.2 billion. Capital Expenditures: RMB952 million for Q2 2026, with annual CapEx guidance of approximately RMB6 billion. Full-Year Parcel Volume Guidance: Updated to 6% to 10% year-over-year growth, representing a range of 40.83 billion to 42.37 billion parcels. Warning! GuruFocus has detected 5 Warning Signs with ASX:SLC. Is ZTO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Parcel volume grew 6.5% year-over-year to 10.49 billion, with market share expanding by 0.4 percentage points, reinforcing industry leadership. Adjusted net income surged 50.3% year-over-year to RMB3.0 billion, demonstrating strong profitability resilience. Retail parcel volume, including reverse logistics, grew 47% year-over-year, with daily return parcels up approximately 80%, boosting per-parcel profitability. Combined unit costs for transportation and sorting decreased by RMB0.02 year-over-year, driven by digitization and lean operations, despite oil price pressures. AI and digitalization initiatives, such as intelligent routing and Smart Park systems, improved operational efficiency, cutting routing analysis time by over 90% and increasing unloading efficiency by 4%. Rising oil prices increased per-parcel transportation costs by approximately RMB0.02 in the second quarter, with expectations of continued pressure of RMB0.01-0.02 per parcel in the second half. Full-year parcel volume growth guidance was updated to 6%-10%, reflecting a more conservative outlook amid industry adjustment and economic conditions. The rollout of standardized social insurance contributions for couriers is expected to increase end-to-end costs in the foreseeable future. ASP for core express delivery increased 15.5%, but this was partly driven by a higher mix of KA volume, which also brought a RMB0.14 increase in unit costs, indicating potential margin pressure from product mix shifts. The industry's shift from price-led scale expansion to quality-driven development may limit volume growth opportunities, as competition becomes more rational but less aggressive. Q: Could you share ZTO's high-level strategic thinking on digitalization and AI, including specific use cases in operational workflows and where they have been implemented? A: Meisong Lai, Chairman and CEO, explained that AI's core value lies in leveraging data from over 100 million daily data transfers to continuously optimize network-wide costs, creating a self-reinforcing loop of lower costs and higher efficiency. AI now runs through the entire chain from pickup to delivery. In transportation, the proprietary intelligent routing and dispatch system covers six common scenarios, with route-coordinated parcel volume growing 120% year-over-year and stranded parcels falling 15%. In the first half of 2026, AI-driven cost savings accounted for about 10% of total transportation cost reductions. The Smart Park system covers all transit centers, flagging 28 types of anomalies, improving unloading efficiency by 4% and anomaly traceability coverage to 88.4%. The proprietary data agent serves over 2,000 managers, cutting routing analysis time by more than 90%. On the outlet side, the precision address system covers over 250,000 frontline couriers with 99.98% building-level location accuracy. More than 90% of merchant inquiries are now resolved through AI self-service, and customer satisfaction has risen from 80% to nearly 90%. Q: What is the current daily volume of retail parcels and reverse logistics, and what is the implied year-over-year growth? What are the targets for the peak season this year and next year? A: Meisong Lai, Chairman and CEO, stated that in the second quarter, average daily retail parcel volume exceeded 11.87 million, of which return parcels averaged approximately 9.8 million per day, increasing approximately 80% year-over-year. Although the price of reverse logistics parcels has declined due to market competition, per-parcel profitability is expected to continue improving, supported by economies of scale and refined cost control. Reverse logistics parcels still generate higher per-parcel profit than standardized e-commerce parcels, effectively lifting overall profitability. The strategy remains clear: seeking high-quality services, high-quality market share, and improved door-to-door service capabilities, with reverse parcel volume continuing to be a main driver for product diversification and profitability gains across the network. Q: What is the potential impact of the gradual implementation of full social insurance contributions for couriers on costs and operations? Does the industry have opportunities to pass through cost inflation via price hikes? A: Meisong Lai, Chairman and CEO, noted that regulators' plans to advance a multitiered social security system for flexible work arrangements, including express delivery personnel, aim to standardize employment practices and protect frontline workers' rights, which are consistent with ZTO's core beliefs. The policy adopts a stepped rollout approach, with social insurance enforced for formal employment relationships and occupational injury protection expanded for flexible workers. ZTO welcomes the regulatory guidance and is actively helping network partners address challenges related to unique flexible work arrangements. While the rollout of standardized social security initiatives will inevitably bring end-to-end cost increases in the foreseeable future, complete coverage will strengthen network stability, reduce courier turnover, and reinforce last-mile service quality over the long run. Q: What are your insights on the industry's second-half growth outlook and ZTO's strategic plan? What is the cost guidance and sensitivity to oil prices? A: Meisong Lai, Chairman and CEO, stated that as anti-evolution policies continue to take effect, the industry has shifted away from price-led scale expansion to quality-driven development. Parcel volume growth for the entire industry is anticipated to be at a stable level. ZTO remains committed to a sustainable long-term mindset, focusing on increasing outlet profitability, rising courier income, and healthy profit growth. Strategically, the company will continue focusing on growing effective market share, building differentiated service capabilities, and advancing end-to-end lean operations. Huiping Yan, CFO, added that rising fuel prices impacted per-parcel transportation costs by approximately RMB0.02 in the second quarter, but efficiency initiatives offset this, with combined unit transportation and sorting costs declining by RMB0.02. The company expects fuel prices to continue weighing on per-parcel transportation costs by about RMB0.01 to RMB0.02 in the second half. ZTO expects core costs in transit operations to decline by RMB0.03 for the full year, with greater emphasis on end-to-end cost reduction through digital tools. Q: Can you provide more details on the second-quarter financial performance and the updated full-year guidance? A: Huiping Yan, CFO, reported that parcel volume grew 6.5% to 10.49 billion, with market share expanding by 0.4 percentage points. Total revenue increased 23% to RMB14.5 billion, while operating income rose 30.4% to RMB3.23 billion. Adjusted net income grew 50.3% to RMB3.1 billion, benefiting from a RMB344.3 million tax refund as a wholly owned subsidiary qualified for a 10% preferential tax rate for tax year 2025. ASP for core express delivery rose RMB0.19, or 15.5%, driven mainly by increased KA volume mix and higher average weight per parcel. Gross profit increased 26.8% to RMB3.7 billion with margin expanding 0.8 points to 25.7%. Operating cash flow totaled RMB4.6 billion, and adjusted EBITDA increased 20% to RMB4.2 billion. Capital expenditures for the quarter totaled RMB952 million, with annual CapEx anticipated around RMB6 billion. The company updated its full-year parcel volume growth guidance to 6% to 10% year-over-year, representing a range of 40.83 billion to 42.37 billion parcels. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ZTO Express (Cayman) Inc. (NYSE:ZTO) shares edged 1.86% lower in pre-market trading on Wednesday despite the Chinese delivery group reporting strong second-quarter earnings and double-digit revenue growth. Adjusted earnings per ADS reached RMB3.79 ($0.56), while revenue increased 23.0% year-on-year to RMB14.55 billion ($2.14 billion) from RMB11.83 billion in the corresponding quarter of 2025. Adjusted net income showed an even stronger improvement, jumping 50.3% from a year earlier to RMB3.1 billion. ZTO handled 10.5 billion parcels during the second quarter, representing a 6.5% increase compared with the previous year. The company said its volume growth exceeded the wider industry average by 2.3 percentage points, helping its market share expand to 19.9%. Revenue growth was supported by both higher parcel volumes and improved pricing. Average revenue per parcel increased 15.5%, benefiting from a greater contribution from higher-value key-account customers, including rapidly expanding reverse-logistics operations. “In the second quarter of 2026, ZTO remained focused on elevating service quality and customer experience, improving operational efficiency, and fostering fair, transparent network policies,” said Meisong Lai, Founder, Chairman and Chief Executive Officer. “Daily average retail parcel volume continued to grow faster than traditional e-commerce parcel volumes. This structural shift boosted parcel volumes while enhancing overall profit margins.” Profitability strengthened alongside the increase in revenue. Gross profit climbed 26.8% year-on-year to RMB3.73 billion, while gross margin expanded to 25.7% from 24.9% in the second quarter of 2025. Operating cash generation also improved substantially. Cash flow from operations reached RMB4.6 billion during the quarter, more than double the RMB2.2 billion generated in the same period last year. The combination of higher pricing, growing parcel volumes and improved operational efficiency contributed to the 50.3% increase in adjusted net income. Despite its strong second-quarter performance, ZTO adjusted its expectations for parcel volumes as growth across China’s express delivery industry begins to moderate. The company now forecasts full-year 2026 parcel volume growth of between 6.0% and 10.0% year-on-year, translating into approximately 40.8 billion to 42.4 billion parcels. Management cited changing market conditions and slower industry growth as factors behind the revised outlook. Although ZTO delivered substantial gains in revenue, adjusted profit, margins and operating cash flow, the more cautious full-year volume expectations appeared to temper investor enthusiasm following the results. ZTO Express stock price

Interested in ZTO Express (Cayman) Inc.? Here are five stocks we like better. ZTO delivered strong Q2 growth: Revenue rose 23% to CNY14.5 billion, adjusted net income increased 50.3% to approximately CNY3.1 billion, and parcel volume grew 6.5% to 10.9 billion, lifting market share by 0.4 percentage points. Pricing and efficiency improved: Core express-delivery selling prices increased 15.5% year over year, while sorting and transportation costs declined through route optimization, automation and better productivity. Gross margin expanded to 25.7%. Management raised its 2026 volume outlook: ZTO now expects parcel-volume growth of 6% to 10%, though higher fuel prices and expanding social-insurance requirements could pressure costs. Retail and reverse-logistics volumes also grew rapidly, supported by AI-driven network improvements. 3 must-own China stocks for the Year of the Dragon ZTO Express (Cayman) (NYSE:ZTO) reported second-quarter 2026 results that showed higher revenue, profit and parcel volume as China’s express-delivery market moved toward what management described as more rational competition and improved pricing conditions. Chairman and Chief Executive Officer Meisong Lai said industry parcel volume grew 4.2% year over year during the quarter, while anti-monopoly policies helped shift the sector away from price-driven competition. ZTO’s parcel volume increased 6.5% to 10.9 billion, according to Chief Financial Officer Huiping Yan, and the company gained 0.4 percentage points of market share. → AMG’s Alternatives Boom Powers Record Growth Alibaba Just Changed The Game For Chinese Tech Conglomerates Total revenue rose 23% to CNY14.5 billion, while operating income increased 30.4% to CNY3.23 billion. Adjusted net income climbed 50.3% to about CNY3.1 billion, aided in part by a CNY344.3 million tax refund tied to a wholly owned subsidiary qualifying for a 10% preferential tax rate for tax year 2025. Yan said the average selling price for ZTO’s core express-delivery business increased CNY0.19, or 15.5%, year over year. The increase included a CNY0.17 benefit primarily tied to a greater mix of key-account volume, including higher-value reverse-logistics services, as well as a CNY0.02 increase resulting from higher average parcel weight. → Microsoft's Maia 300 Chip Targets NVIDIA's AI Dominance Total cost of revenue rose 21.7% to CNY10.8 billion. Core express-delivery unit costs increased CNY0.12, or 14.6%, including a CNY0.14 increase associated with the company’s strategic expansion of key-account volume. Despite pressure from higher oil prices, ZTO reduced its combined unit sorting and transportation costs by CNY0.02 year over year. Unit line-haul transportation costs declined 3.7% to CNY0.32, while unit sorting costs fell 2.6% to CNY0.24. Yan attributed the reductions to route optimization, improved load rates, labor productivity and automation. → The Metals Company’s Big Bet Now Comes Down to a License Gross profit increased 26.8% to CNY3.7 billion, and gross margin expanded 0.8 percentage points to 25.7%. Selling, general and administrative expenses excluding share-based compensation declined 10.5% to CNY555.5 million, representing 3.8% of revenue. Adjusted EBITDA rose 20% to CNY4.2 billion, while operating cash flow totaled CNY4.6 billion. Lai highlighted retail parcels and reverse logistics as an important part of ZTO’s product-diversification strategy. Retail parcel volume rose 47% year over year during the quarter, he said. Average daily retail parcel volume exceeded 11.87 million in the second quarter, including approximately 9.8 million daily return parcels. Return-parcel volume increased about 80% from a year earlier, according to Lai. While reverse-logistics parcel pricing has declined amid market competition, Lai said the business continues to generate higher profit per parcel than standardized e-commerce delivery. Management expects profitability in the segment to improve further through scale and refined cost controls. The company said it is prioritizing “high-quality” market share, differentiated service capabilities and improved earnings for its franchise outlets and couriers rather than pursuing short-term volume expansion at any cost. In response to an analyst question, Lai said ZTO is deploying artificial intelligence and digital tools across pickup, transit, delivery and network management. He said the company’s intelligent routing and dispatch system has been applied to six common transportation scenarios, with route-coordinated parcel volume rising 120% year over year and stranded parcels declining 15%. During the first half of 2026, AI-related transportation savings accounted for about 10% of the company’s total transportation-cost reduction, Lai said. ZTO’s smart park system now covers all transit centers nationwide, using machine vision to monitor operations and flag 28 types of anomalies. The company said unloading efficiency increased 4% and anomaly traceability coverage reached 88.4%. ZTO also said its data agent serves more than 2,000 managers at headquarters and provincial offices, reducing routing-analysis time by more than 90%. Its precision-address system covers more than 250,000 frontline couriers, while more than 90% of merchant inquiries and ticketing are resolved through AI self-service, according to management. ZTO updated its full-year 2026 parcel-volume growth outlook to 6% to 10% year over year, representing projected volume of 40.83 billion to 42.37 billion parcels. Yan said management expects the broader industry’s parcel-volume growth to remain stable as the market continues its transition toward service quality and operating efficiency. The company expects core transit-operation costs to decline by CNY0.03 for the full year. However, management said fuel prices could continue to add approximately CNY0.01 to CNY0.02 to per-parcel transportation costs in the second half. ZTO said it plans to mitigate volatility through lower-cost fuel reserves, expanded use of natural-gas trucks and exploration of electric vehicles for express-delivery operations. Second-quarter capital expenditures totaled $952 million, according to Yan, and the company expects 2026 capital expenditures of around CNY6 billion. Management also discussed the gradual expansion of social-insurance requirements for delivery workers. Sophie Li, company secretary and director of capital markets, said standardized social-security initiatives could increase end-to-end costs in the near term, but may strengthen network stability, reduce courier turnover and improve last-mile service quality over time. ZTO Express (Cayman) Inc is one of China's leading express delivery companies, specializing in both domestic and cross-border parcel logistics. The company operates a technology-enabled network that connects shippers, independent pickup and delivery stations, regional sorting hubs and end customers. ZTO's service portfolio includes standard express, heavy-weight parcel delivery, time-definite shipments and e-commerce logistics solutions tailored for online retailers and marketplaces. Founded in 2002 and headquartered in Shanghai, ZTO has grown rapidly by leveraging a franchise-style operating model that engages a broad network of independent contractors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ZTO Express (Cayman) Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

10.5 Billion Parcels Expanded Market Share to 19.9%Adjusted Net Income Increased 50.3% to RMB3.1 Billion SHANGHAI, Aug. 18, 2026 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the second Quarter ended June 30, 2026[1]. The Company grew parcel volume by 6.5% year over year while maintaining high quality of service and customer satisfaction. Adjusted net income increased 50.3%[2] to RMB3.1 billion. Net cash generated from operating activities was RMB4.6 billion. Second Quarter 2026 Financial Highlights Revenues were RMB14,549.9 million (US$2,144.4 million), an increase of 23.0% from RMB11,831.8 million in the same period of 2025. Gross profit was RMB3,733.3 million (US$550.2 million), an increase of 26.8% from RMB2,944.4 million in the same period of 2025. Net income was RMB3,077.6 million (US$453.6 million), an increase of 56.7% from RMB1,964.6 million in the same period of 2025. Adjusted EBITDA[3] was RMB4,241.4 million (US$625.1 million), an increase of 20.0% from RMB3,534.9 million in the same period of 2025. Adjusted net income was RMB3,086.1 million (US$454.8 million), an increase of 50.3% from RMB2,052.7 million in the same period of 2025. Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB3.99 (US$0.59) and RMB3.78 (US$0.56), an increase of 64.9% and 59.5% from RMB2.42 and RMB2.37 in the same period of 2025, respectively. Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5] were RMB4.00 (US$0.59) and RMB3.79 (US$0.56), an increase of 58.1% and 52.8% from RMB2.53 and RMB2.48 in the same period of 2025 respectively. Net cash provided by operating activities was RMB4,563.6 million (US$672.6 million), compared with RMB2,168.2 million in the same period of 2025. Operational Highlights for Second Quarter 2026 Parcel volume was 10,486 million, increased 6.5% from 9,847 million in the same period of 2025. Number of pickup/delivery outlets was over 31,000 as of June 30, 2026. Number of direct network partners was approximately 6,000 as of June 30, 2026. Number of self-owned line-haul vehicles was over 10,000 as of June 30, 2026. Number of line-haul routes between sorting hubs was over 3,600 as of June 30, 2026. Number of sorting hubs was 92 as of June 30, 2026, among which 87 are operated by the Company and 5 by the Company's network partners. Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented, "In the second quarter of 2026, ZTO remained focused on elevating service quality and customer experience, improving operational efficiency, and fostering fair, transparent network policies. We handled a total parcel volume of 10.5 billion, representing a 6.5% year–over–year increase, outpacing the industry average by 2.3 percentage points. Adjusted net income reached RMB 3.1 billion. Daily average retail parcel volume continued to grow faster than traditional e–commerce parcel volumes. This structural shift boosted parcel volumes while enhancing overall profit margins." Mr. Lai added, "China's express–delivery industry continued to benefit from regulatory guidance, with broad–based profit expansion marking a shift in priorities toward value–driven development alongside volume growth. ZTO's Quality–First commitment and consistent performance are backed by our industry–leading operational efficiency and fairness–oriented network governance. Deep–rooted in our Shared–Success philosophy and practices, we enable and support improved returns for our network partners and couriers, while delivering sound profitability for the company. Supported by constructive regulatory guidance and our competitive advantages — including advancing digital–technology capabilities and nurtured trust and cohesiveness across our franchise partner network — we are well positioned to navigate industry and economic cycles." Ms. Huiping Yan, Chief Financial Officer of ZTO, commented, "For the second quarter this year, our core express ASP rose 15.5% in the second quarter, supported by an improved revenue mix driven by higher–value key–account volumes, including rapidly expanding reverse–logistics business. Despite cost pressures stemming from oil–price volatility, combined unit sorting and transportation costs decreased by 2 cents, thanks to digitization and lean operations. SG&A, excluding SBC, represented approximately 3.8% of revenue, compared with 5.2% in the same period last year. Operating cash flow was RMB 4.6 billion, while capital expenditure totaled RMB 952 million." Ms. Yan added, "ZTO's long–standing profitable–growth strategy remains effective amid today's subdued growth environment. Our steady market–share gains are bolstered by sustained government efforts against involution, as well as our ongoing focus on the stability of our unique franchise–partner network, which thrives on the equitable allocation of risks and rewards. We intend to further solidify our volume leadership. Considering evolving market dynamics and slowing industry parcel–volume growth for the full year, we have updated our annual parcel–volume growth guidance to 6–10% year–over–year." Total Revenues were RMB 14,549.9 million (US$ 2,144.4 million), increased 23.0% from RMB11,831.8 million in the same period of 2025. Revenue from the core express delivery business increased by 23.0% compared to the same period of 2025 as a result of a 6.5% growth in parcel volume and a 15.5% increase in parcel unit price. Within core express delivery revenue, key account revenue, generated by direct sales organizations, increased by 63.6% mainly driven by increase in e-commerce return parcels. Revenue from freight forwarding services increased by 21.1% compared to the same period of 2025. Revenue from sales of accessories, largely consisted of sales of thermal paper for digital waybills, decreased by 1.7%. Other revenues were mainly derived from financing services. Total cost of revenues was RMB10,816.6 million (US$1,594.2 million), an increase of 21.7% from RMB8,887.4 million in the same period last year. Line-haul transportation cost was RMB3,375.6 million (US$497.5 million), increased 2.6% from RMB3,290.9 million in the same period last year. The unit transportation cost decreased 3.0% or 1 cent mainly attributable to better economies of scale and improved load rate through more effective route planning offsetting higher diesel prices. Sorting hub operating cost was RMB2,505.8 million (US$369.3 million), increased 3.8% from RMB2,414.8 million in the same period last year. The increase primarily consisted of (i) RMB84.5 million (US$12.5 million) increase in labor-associated costs partially offset by automation-driven efficiency improvements, and (ii) RMB14.8 million (US$2.2 million) increase in depreciation and amortization costs associated with automation facilities and equipment upgrades. As of June 30, 2026, there were 782 sets of automated sorting equipment in service, compared to 690 sets as of June 30, 2025. Cost of accessories sold was RMB145.8 million (US$21.5 million), decreased by 3.6% compared with RMB151.2 million in the same period last year. Other costs were RMB4,609.7 million (US$679.4 million), increased 61.2% from RMB2,860.2 million in the same period last year, which was mainly due to an increase of RMB1,620.4 million (US$238.8 million) for pickup and dispatching costs paid to network partners associated with serving key account customers, primarily for handling e-commerce return parcels. Gross Profit was RMB3,733.3 million (US$550.2 million), increased by 26.8% from RMB2,944.4 million in the same period last year. Gross margin rate improved to 25.7% from 24.9% in the same period last year. Total Operating Expenses were RMB505.3 million (US$74.5 million), compared to RMB469.3 million in the same period last year. Selling, general and administrative expenses were RMB556.7 million (US$82.0 million), decreased by 10.7% from RMB623.6 million in the same period last year, mainly due to a RMB 40.8 million (US$6.0 million) allowance of credit losses relating to financing receivables recognized in the same period of last year. Other operating income, net was RMB51.3 million (US$7.6 million), compared to RMB154.3 million in the same period last year. Other operating income mainly consisted of (i) RMB23.7 million (US$3.5 million) of government subsidies and tax rebates, and (ii) RMB27.6 million (US$4.1 million) of rental and other income. Income from operations was RMB3,227.9 million (US$475.7 million), increased 30.4% from RMB2,475.1 million for the same period last year. The operating margin rate increased to 22.2% from 20.9% in the same period last year. Interest income was RMB155.7 million (US$22.9 million), compared with RMB208.7 million in the same period last year. Interest expenses was RMB70.6 million (US$10.4 million), compared with RMB98.1 million in the same period last year. Gain from fair value changes of financial instruments was RMB45.4 million (US$6.7 million), compared with a loss of RMB3.6 million in the same period last year. Such gain or loss from fair value changes of the financial instruments is quoted by commercial banks according to market-based estimation of future redemption prices. Income tax expenses were RMB258.6 million (US$38.1 million) compared to RMB575.5 million in the same period last year. The overall income tax rate was 7.7%, down 15.2 percentage points year over year. The decline was mainly attributable to an income tax refund of RMB344.3 million (US$50.7 million) received by Shanghai Zhongtongji Network Technology Co., Ltd. (上海中通吉網絡技術有限公司), a wholly owned subsidiary of the Company, upon its recognition as a "Key Software Enterprise" qualifying for a preferential tax rate of 10% for tax year 2025. Net income was RMB3,077.6 million (US$453.6 million), which increased by 56.7% increase from RMB1,964.6 million in the same period last year. Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB3.99 (US$0.59) and RMB3.78 (US$0.56), compared to basic and diluted earnings per ADS of RMB2.42 and RMB2.37 in the same period last year, respectively. Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB4.00 (US$0.59) and RMB3.79 (US$0.56), compared with RMB2.53 and RMB2.48 in the same period last year, respectively. Adjusted net income was RMB3,086.1 million (US$454.8 million), compared with RMB2,052.7 million during the same period last year. EBITDA[1] was RMB4,231.3 million (US$623.6 million), compared with RMB3,446.8 million in the same period last year. Adjusted EBITDA was RMB4,241.4 million (US$625.1 million), compared to RMB3,534.9 million in the same period last year. Net cash provided by operating activities was RMB4,563.6 million (US$672.6 million), compared with RMB2,168.2 million in the same period last year. Appointment of New Independent Director The Board of Directors of the Company (the "Board") has announced that Mr. Wei Zhu has been appointed as an independent director, effective August 19, 2026. Mr. Zhu has over 35 years of experience in management consulting, investment banking, private equity investment and large-scale corporate management. From April 2026, Mr. Zhu has served as a director and advisor to Shanghai Xforceplus Information Technology Co., Ltd. and its affiliate for AI technology. From June 2024 to February 2026, Mr. Zhu served as co-head of North Asia at Alvarez & Marsal. From 2018 to 2021, Mr. Zhu served as chairman of Greater China at Accenture plc and was appointed to Accenture's global management committee in 2020. Previously, Mr. Zhu served as global co-head of Standard Chartered Bank's private equity business from 2009 to 2017, senior managing director and head of CVC Capital Partners from 2008 to 2009, managing director at Goldman Sachs Gao Hua Securities Company Limited from 2005 to 2008, senior partner and president of Greater China at Roland Berger from 2004 to 2005, and president of Greater China at A.T. Kearney from 2001 to 2003. Mr. Zhu has served as an independent director of Shanghai Foreign Service Holding Group Co., Ltd. since September 2021. Mr. Zhu received a Bachelor in Foreign Service from Georgetown University in 1986 and an MBA from the University of Chicago in 1992. Shareholder Return Update As disclosed in March 2026, the Board has approved an enhanced return mechanism, pursuant to which the Company targets an aggregate annual shareholder return ratio of no less than 50% of its adjusted net income for the prior fiscal year, comprising both cash dividends and share repurchases. As of the end of the second quarter, the Company had repurchased an aggregate of 31,788,692 Class A Ordinary Shares for US$740 million (including repurchase commissions) in 2026, equivalent to 52% of its adjusted net income for 2025. As such, the Board did not recommend the distribution of an interim dividend for the first half of 2026. In March 2026, the Board also approved a new share repurchase program (the "New Program"), authorizing share repurchases of up to US$1.5 billion of its shares over a 24-month period, effective from March 20, 2026 to March 20, 2028. As of the end of the second quarter of 2026, the Company had repurchased an aggregate of 6,161,216 ADSs for US$138 million (including repurchase commissions) under the New Program, leaving US$1.36 billion of capacity under the authorisation. Business Outlook Based on current market and operating conditions, the Company revises its previously stated annual guidance. Parcel volume for 2026 is expected to increase by 6.0% to 10.0% year over year, representing a parcel volume range of 40.8 billion to 42.4 billion. Such estimates represent management's current and preliminary view, which are subject to change. Exchange Rate This announcement contains translation of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars were made at the exchange rate of RMB 6.7851 to US$ 1.00, the noon buying rate on June 30, 2026 as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve Systems. Use of Non-GAAP Financial Measures The Company uses EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders, and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders, each a non-GAAP financial measure, in evaluating ZTO's operating results and for financial and operational decision-making purposes. Reconciliations of the Company's non-GAAP financial measures to its U.S. GAAP financial measures are shown in tables at the end of this earnings release, which provide more details about the non-GAAP financial measures. The Company believes that such non-GAAP measures help identify underlying trends in the Company's business that could otherwise be distorted by the effect of the related expenses and gains that the Company includes in income from operations and net income, and provide useful information about its operating results, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making. EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders should not be considered in isolation or construed as an alternative to net income or any other measure of performance or as an indicator of the Company's operating performance. Investors are encouraged to compare the historical non-GAAP financial measures to the most directly comparable GAAP measures. EBITDA, adjusted EBITDA, adjusted net income, adjusted net income attributable to ordinary shareholders and adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to ZTO's data. ZTO encourages investors and others to review the Company's financial information in its entirety and not rely on a single financial measure. Conference Call Information ZTO's management team will host an earnings conference call at 8:30 PM U.S. Eastern Time on Tuesday, August 18, 2026 (8:30 AM Beijing Time on Wednesday, August 19, 2026). Dial-in details for the earnings conference call are as follows: Please dial in 15 minutes before the call is scheduled to begin and provide the passcode to join the call. A replay of the conference call may be accessed by phone at the following numbers until August 24, 2026: Additionally, a live and archived webcast of the conference call will be available at http://zto.investorroom.com. About ZTO Express (Cayman) Inc. ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057) ("ZTO" or the "Company") is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China. ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain. For more information, please visit http://zto.investorroom.com. Safe Harbor Statement This announcement contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and other similar expressions. Among other things, the business outlook and quotations from management in this announcement contain forward-looking statements. ZTO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") and The Stock Exchange of Hong Kong Limited (the "HKEX"), in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the HKEX, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about ZTO's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: risks relating to the development of the e-commerce and express delivery industries in China; its significant reliance on certain third-party e-commerce platforms; risks associated with its network partners and their employees and personnel; intense competition which could adversely affect the Company's results of operations and market share; any service disruption of the Company's sorting hubs or the outlets operated by its network partners or its technology system; ZTO's ability to build its brand and withstand negative publicity, or other favorable government policies. Further information regarding these and other risks is included in ZTO's filings with the SEC and the HKEX. All information provided in this announcement is as of the date of this announcement, and ZTO does not undertake any obligation to update any forward-looking statement, except as required under applicable law. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: For investor and media inquiries, please contact:ZTO Express (Cayman) Inc.Investor RelationsE-mail: [email protected] Phone: +86 21 5980 4508 View original content:https://www.prnewswire.com/news-releases/zto-reports-second-quarter-2026-unaudited-financial-results-302854342.html

A month has gone by since the last earnings report for ZTO Express (Cayman) Inc. (ZTO). Shares have lost about 4.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is ZTO Express Cayman due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ZTO Express (Cayman) Inc. before we dive into how investors and analysts have reacted as of late. ZTO Express reported first-quarter 2026 earnings of 43 cents per share, which improved from the year-ago quarter. Total revenues of $1.92 billion also improved from the year-ago reported quarter. Revenue from the core express delivery business increased 22.5% year over year, owing to a 13.2% growth in parcel volume and an 8.2% increase in parcel unit price. Key account revenue, generated by direct sales organizations, grew 92.2% year over year owing to increase in e-commerce return parcels. Revenues from freight forwarding services decreased 13% year over year. Revenue from sales of accessories, largely consisted of sales of thermal paper for digital waybills, rose 3.1% year over year. Other revenues were mainly derived from financing services. Gross profit increased 20.3% from the year-ago reported quarter. Gross margin rate fell to 24.4% from 24.7% in the year-ago period. Total operating expenses were RMB690.0 million ($100.0 million), compared with RMB283.8 million in the same period last year. ZTO Express exited the first quarter of 2026 with cash and cash equivalents of $1.65 billion compared with $1.43 billion at the end of the prior quarter. ZTO’s board has approved a new share repurchase program in March 2026, authorizing the repurchase of up to $1.5 billion of its shares over the next 24 months, effective from March 20, 2026, through March 20, 2028. ZTO Express anticipates to fund these repurchases utilizing its existing cash balance. Based on current market and operating conditions, ZTO Express reaffirms its 2026 parcel volume guidance in the range of 42.37 billion to 43.52 billion (reflecting 10-13% year over year growth). Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. At this time, ZTO Express Cayman has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. ZTO Express Cayman has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. ZTO Express Cayman is part of the Zacks Transportation - Services industry. Over the past month, Expeditors International (EXPD), a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended March 2026 more than a month ago. Expeditors International reported revenues of $2.78 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.71 for the same period compares with $1.47 a year ago. Expeditors International is expected to post earnings of $1.56 per share for the current quarter, representing a year-over-year change of +16.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Expeditors International. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SHANGHAI, June 16, 2026 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and HKEX: 2057), a leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today announced that each of the following proposed resolutions submitted for shareholder approval has been adopted as an ordinary resolution at its annual general meeting of shareholders held in Hong Kong today: About ZTO Express (Cayman) Inc. ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057) ("ZTO" or the "Company") is a leading and fast-growing express delivery company in China. ZTO provides express delivery service as well as other value-added logistics services through its extensive and reliable nationwide network coverage in China. ZTO operates a highly scalable network partner model, which the Company believes is best suited to support the significant growth of e-commerce in China. The Company leverages its network partners to provide pickup and last-mile delivery services, while controlling the mission-critical line-haul transportation and sorting network within the express delivery service value chain. For more information, please visit https://zto.investorroom.com. Safe Harbor Statement This announcement contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and other similar expressions. ZTO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC") and The Stock Exchange of Hong Kong Limited (the "HKEX"), in its interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the HKEX, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including but not limited to statements about ZTO's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: risks relating to the development of the e-commerce and express delivery industries in China; its significant reliance on certain third-party e-commerce platforms; risks associated with its network partners and their employees and personnel; intense competition which could adversely affect the Company's results of operations and market share; any service disruption of the Company's sorting hubs or the outlets operated by its network partners or its technology system; ZTO's ability to build its brand and withstand negative publicity, or other favorable government policies. Further information regarding these and other risks is included in ZTO's filings with the SEC and the HKEX. All information provided in this announcement is as of the date of this announcement, and ZTO does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: ZTO Express (Cayman) Inc. Investor RelationsE-mail: [email protected]: +86 21 5980 4508 View original content:https://www.prnewswire.com/news-releases/zto-express-announces-results-of-annual-general-meeting-302801459.html

ZTO ExpressZTO reported first-quarter 2026 earnings of 43 cents per share, which improved from the year-ago quarter. Total revenues of $1.92 billion also improved from the year-ago reported quarter. ZTO Express (Cayman) Inc. price-consensus-eps-surprise-chart | ZTO Express (Cayman) Inc. Quote Mr. Meisong Lai, founder, chairman and chief executive officer of ZTO, stated, "During the first quarter of 2026, ZTO maintained focus on quality of services and customer satisfaction, and well executed our key strategies to improve operating cost efficiencies and strengthening network pricing policy fairness and transparency. Our parcel volume reached 9.7 billion, which grew 13.2%, or 7.4 points above industry average, mainly attributable to strong key accounts growth. Our adjusted net income was 2.4 billion, as the daily average retail volume continued to expand at a faster rate than traditional ecommerce volume resulting in improved revenue structure that not only contributed to volume increase as well as positive contribution to overall margin." Revenues from the core express delivery business increased 22.5% year over year, owing to 13.2% growth in parcel volume and an 8.2% increase in parcel unit price. Key account revenue, generated by direct sales organizations, grew 92.2% year over year, owing to an increase in e-commerce return parcels. Revenues from freight forwarding services decreased 13% year over year. Revenue from sales of accessories, which largely consisted of sales of thermal paper for digital waybills, rose 3.1% year over year. Other revenues were mainly derived from financing services. Gross profit increased 20.3% from the year-ago reported quarter. Gross margin rate fell to 24.4% from 24.7% in the year-ago period. Total operating expenses were RMB690.0 million ($100.0 million) compared with RMB283.8 million in the same period last year. ZTO Express exited the first quarter of 2026 with cash and cash equivalents of $1.65 billion compared with $1.43 billion at the end of the prior quarter. ZTO’s board has approved a new share repurchase program in March 2026, authorizing the repurchase of up to $1.5 billion of its shares over the next 24 months, effective from March 20, 2026, through March 20, 2028. ZTO Express anticipates funding these repurchases utilizing its existing cash balance. Based on current market and operating conditions, ZTO Express reaffirms its 2026 parcel volume guidance in the range of 42.37 billion to 43.52 billion (reflecting 10-13% year over year growth). Currently, ZTO Express carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delta Air Lines (DAL) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis. United Airlines Holdings, Inc. (UAL) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis. UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50. Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year. Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion. J.B. Hunt Transport Services JBHT posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise. Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report ZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in ZTO Express (Cayman) Inc.? Here are five stocks we like better. ZTO outpaced the broader industry in Q1, with parcel volume rising 13.2% year over year to 9.67 billion versus 5.8% industry growth. Management said market share increased by 1.4 percentage points, helped by pricing discipline and a stronger mix of higher-value parcels. Revenue and profitability improved, but costs were mixed. Revenue climbed 22% to CNY 13.3 billion, adjusted net income rose 5.2% to CNY 2.4 billion, and adjusted operating profit increased 22%, while operating margin slipped to 19.2% as higher key-account mix pushed core unit costs up. The company is leaning into automation, reverse logistics and AI while keeping full-year parcel growth guidance unchanged at 10% to 13%. ZTO said AI and automation have already cut missorting and service costs, and it expects 2026 capital spending of about CNY 6 billion. 3 must-own China stocks for the Year of the Dragon ZTO Express (Cayman) (NYSE:ZTO) reported stronger first-quarter volume growth than the broader Chinese express delivery industry, with management citing improved pricing discipline, lower transit costs and growth in higher-value parcel categories as key drivers of the quarter. Chairman and Chief Executive Officer Meisong Lai said China’s express delivery industry parcel volume rose 5.8% year over year in the first quarter of 2026, while ZTO’s parcel volume increased 13.2% to 9.67 billion parcels. Chief Financial Officer Huiping Yan said the company gained 1.4 percentage points of market presence during the period. → Why Applied Optoelectronics Stock May Be Near a Turning Point Alibaba Just Changed The Game For Chinese Tech Conglomerates Lai said the industry benefited from “anti-involution” policies that have helped restore pricing order and move competition back toward more rational behavior. He said ZTO supported those policies and remained focused on network health, service quality and profitability rather than short-term aggressive expansion. Yan said total revenue increased 22% year over year to CNY 13.3 billion. Adjusted net income rose 5.2% to CNY 2.4 billion, while adjusted operating profit, excluding non-operating factors such as government subsidies and tax rebates, increased 22% to CNY 2.6 billion. → The Pentagon's AI Pivot Supercharges Defense Stocks Income from operations increased 5.8% to CNY 2.5 billion, with the operating margin declining 2.9 percentage points to 19.2%. Gross profit rose 20.3% to CNY 3.2 billion, while gross margin decreased slightly by 0.3 percentage points to 24.4%. Parcel volume increased 13.2% to 9.67 billion parcels. Total revenue rose 22% to CNY 13.3 billion. Adjusted net income increased 5.2% to CNY 2.4 billion. Adjusted EBITDA rose 6.9% to CNY 3.9 billion. Operating cash flow increased 18% to CNY 2.8 billion. Yan said selling, general and administrative expenses, excluding share-based compensation, increased 14.9% to CNY 594.5 million. As a percentage of revenue, that expense category declined to 4.5%, which she said reflected corporate cost efficiency. → Ackman and Berkshire Are Betting Against Each Other on AI ZTO’s average selling price for core express delivery increased CNY 0.11, or 8.2%, Yan said. She attributed the increase mainly to a CNY 0.18 positive impact from higher key account volume mix, led by higher-value reverse logistics, partly offset by a CNY 0.09 increase in volume incentives. Higher average parcel weight added another CNY 0.02 to ASP. Total cost of revenue increased 22.5% to CNY 10 billion. Yan said overall unit cost for the core express delivery business increased 8.8%, or CNY 0.08, including a CNY 0.15 increase tied to the company’s strategic expansion of key account volume. At the same time, management emphasized efficiency gains in transportation and sorting. The combined unit cost of transportation and sorting fell CNY 0.06 year over year. Yan said unit line-haul transportation cost declined 10.5% to CNY 0.37 because of optimized route planning and better load efficiency. Unit sorting cost declined 6.4% to CNY 0.25, aided by labor productivity and automation improvements. Responding to an analyst question from Morgan Stanley’s Qianlei Fan, management said ZTO improved transportation costs through route optimization, better loading efficiency, tiered incentives tied to volume levels and refined fleet management. On sorting costs, the company cited automation, digital monitoring, equipment upgrades and workforce accountability mechanisms. Management said fuel price volatility was expected to have a limited impact on second-quarter network-wide costs. Yan said diesel prices rose significantly in March because of Middle East tensions but declined somewhat in late April. She added that pricing recovery driven by anti-involution policies and, in some provinces, fuel surcharges had largely offset the impact of higher fuel costs. Lai said ZTO continued to optimize its product mix by focusing on higher-value retail parcels, reverse logistics and other differentiated offerings. He said this was part of a shift away from reliance on traditional e-commerce parcel volume toward a more diversified structure. In response to UBS analyst Aaron Luo, management said average daily retail parcel volume reached approximately 9.7 million in the first quarter. In the second quarter, reverse logistics parcel volume rose further, with average daily volume exceeding 9.4 million. Although reverse logistics pricing declined slightly because of competition, management said unit costs continued to improve through scale and cost controls. Lai said the unit profit contribution from reverse logistics remained higher than that of traditional e-commerce parcels. Goldman Sachs analyst Steve Chu asked how ZTO planned to maintain its technology lead in the AI era. Management said AI had become a core strategic priority and was being integrated across sorting, customer service and last-mile dispatch. The company said 3D digital twins and machine vision had been deployed across about 25 sorting centers, reducing missorting rates by more than 60%. ZTO also said its AI-powered customer service system automatically processes more than 70% of end-to-end service tickets, while intelligent agents cover more than 80% of daily business inquiries from network outlets. For last-mile operations, management said proprietary high-precision mapping is being used in site selection and delivery route optimization, helping large outlets reduce short-distance transportation costs by more than 20%. The company said it plans to complete an AI upgrade of voice customer service within six months, covering nearly 6,000 network outlets nationwide. ZTO maintained its previous full-year guidance for parcel volume growth of 10% to 13% year over year. Yan said that represents a parcel volume range of 42.37 billion to 43.52 billion parcels. She said the estimate reflects management’s current preliminary view and remains subject to change. Yan also corrected her prepared remarks to say ZTO expects 2026 capital expenditures of about CNY 6 billion. First-quarter capital expenditures totaled CNY 1.8 billion. Looking ahead, Lai said ZTO would continue to focus on high-quality development, cost reduction, service quality, network management and shareholder returns. He said the company also aims to protect frontline courier rights and improve courier income, while supporting network partners in lowering costs and improving profitability. Asked by CITIC Securities analyst Mujin Lin about potential social security requirements for delivery workers, management said such policies could increase per-parcel costs in the short term but may improve network stability and reduce turnover over the long term. Yan said ZTO’s consolidated group already has a higher level of compliance, while outlet-level practices vary, and said the company would support network partners in becoming compliant. ZTO Express (Cayman) Inc is one of China's leading express delivery companies, specializing in both domestic and cross-border parcel logistics. The company operates a technology-enabled network that connects shippers, independent pickup and delivery stations, regional sorting hubs and end customers. ZTO's service portfolio includes standard express, heavy-weight parcel delivery, time-definite shipments and e-commerce logistics solutions tailored for online retailers and marketplaces. Founded in 2002 and headquartered in Shanghai, ZTO has grown rapidly by leveraging a franchise-style operating model that engages a broad network of independent contractors. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "ZTO Express (Cayman) Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.