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ZTO Express (Cayman) Inc. (ZTO) Q2 2026 Earnings Call August 18, 2026 8:30 PM EDT

Company Participants

Sophie Li - Investor Relations Director
Meisong Lai - Founder, Chairman & CEO
Huiping Yan - Chief Financial Officer

Conference Call Participants

Steve Qiu - Goldman Sachs Group, Inc., Research Division
Qianlei Fan - Morgan Stanley, Research Division
Aaron Luo - UBS Investment Bank, Research Division

Presentation

Operator

Good day, and welcome to the ZTO to announce Second Quarter and Half Year 2026 financial results. [Operator Instructions] Please note that this event is being recorded.

I would now like to turn the conference over to Ms. Sophie Li, Company Secretary. Please go ahead.

Sophie Li
Investor Relations Director

Thank you, Chuck. Hello, everyone, and thank you for joining us today. The company's results and investor relations presentation were released earlier today and are available on the company's IR website at ir.zto.com.

On the call today from ZTO are Mr. Meisong Lai, Chairman and Chief Executive Officer; and Mrs. Huiping Yan, Chief Financial Officer. Mr. Lai will give a brief overview of the company's business operations and highlights, followed by Mrs. Yan, who will go through the financials and guidance. They will both be available to answer your questions during the Q&A session that follows.

I remind you that this call may contain forward-looking statements made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the company's control, which may cause the company's actual results, performance or achievements to differ materially from those in the forward-looking statements.

Further information regarding

10.5 Billion Parcels Expanded Market Share to 19.9%
Adjusted Net Income Increased 50.3% to RMB3.1 Billion

, /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. [1]  An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com.

[2]  Adjusted net income is a non-GAAP financial measure, which is defined as net income before share-based compensation expense and non-recurring items such as impairment of Goodwill, impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary and corresponding tax impact which management aims to better represent the underlying business operations.

[3]  Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude the shared-based compensation expense and non-recurring items such as impairment of Goodwill, impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary which management aims to better represent the underlying business operations.

[4]  One ADS represents one Class A ordinary share.

[5]  Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares, respectively.

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."

Second Quarter 2026 Unaudited Financial Results

Three Months Ended June 30,

Six Months Ended June 30,

2025

2026

2025

2026

RMB

%

RMB

US$

%

RMB

%

RMB

US$

%

(in thousands, except percentages)

Express delivery services

10,983,751

92.8

13,683,530

2,016,703

94.0

21,106,041

92.9

26,207,309

3,862,479

94.2

Freight forwarding services

180,257

1.5

218,349

32,181

1.5

359,477

1.5

374,259

55,159

1.3

Sale of accessories

635,770

5.4

624,942

92,105

4.3

1,196,066

5.3

1,202,617

177,244

4.3

Others

32,029

0.3

23,071

3,400

0.2

61,688

0.3

48,071

7,085

0.2

Total revenues

11,831,807

100.0

14,549,892

2,144,389

100.0

22,723,272

100.0

27,832,256

4,101,967

100.0

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.

Three Months Ended June 30,

Six Months Ended June 30,

2025

2026

2025

2026

RMB

%

RMB

US$

%

RMB

%

RMB

US$

%

(in thousands, except percentages)

Line-haul transportation cost

3,290,945

27.8

3,375,579

497,499

23.2

6,774,009

29.8

6,905,747

1,017,781

24.8

Sorting hub operating cost

2,414,839

20.4

2,505,815

369,311

17.2

4,729,435

20.8

4,960,086

731,026

17.8

Freight forwarding cost

170,235

1.4

179,844

26,506

1.2

343,028

1.5

334,109

49,242

1.2

Cost of accessories sold

151,204

1.3

145,751

21,481

1.0

284,463

1.3

273,340

40,285

1.0

Other costs

2,860,187

24.2

4,609,650

679,378

31.7

4,958,720

21.8

8,390,500

1,236,607

30.2

Total cost of revenues

8,887,410

75.1

10,816,639

1,594,175

74.3

17,089,655

75.2

20,863,782

3,074,941

75.0

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.

[1]  EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations.

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:

United States:

1-888-317-6003

Hong Kong:

800-963-976

Mainland China:

4001-206-115

International:

1-412-317-6061

Passcode:

1904847

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:

United States:   

1-855-669-9658

International:

1-412-317-0088

Passcode:

8514365

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.

UNAUDITED CONSOLIDATED FINANCIAL DATA

Summary of Unaudited Consolidated Comprehensive Income Data:

Three Months Ended June 30,

Six Months Ended June 30,

2025

2026

2025

2026

RMB

RMB

US$

RMB

RMB

US$

(in thousands, except for share and per share data)

Revenues

11,831,807

14,549,892

2,144,389

22,723,272

27,832,256

4,101,967

Cost of revenues

(8,887,410)

(10,816,639)

(1,594,175)

(17,089,655)

(20,863,782)

(3,074,941)

Gross profit

2,944,397

3,733,253

550,214

5,633,617

6,968,474

1,027,026

Operating (expenses)/income:

Selling, general and administrative

(623,587)

(556,667)

(82,043)

(1,361,098)

(1,372,331)

(202,257)

Other operating income, net

154,274

51,326

7,565

607,943

177,037

26,092

Total operating expenses

(469,313)

(505,341)

(74,478)

(753,155)

(1,195,294)

(176,165)

Income from operations

2,475,084

3,227,912

475,736

4,880,462

5,773,180

850,861

Other income/(expenses):

Interest income

208,732

155,709

22,949

407,124

321,654

47,406

Interest expense

(98,112)

(70,627)

(10,409)

(166,988)

(120,899)

(17,818)

(Loss)/gain from fair value changes of

financial instruments

(3,635)

45,410

6,693

32,978

100,354

14,790

Loss on disposal of equity investees,

subsidiary and others

(714)

(8,829)

(1,301)

(567)

(8,351)

(1,231)

Impairment of Goodwill

(84,431)

-

-

(84,431)

-

-

Foreign currency exchange gain/(loss) before

tax

16,419

6,936

1,022

12,375

(21,898)

(3,227)

Income before income tax, and share of

income in equity method investments

2,513,343

3,356,511

494,690

5,080,953

6,044,040

890,781

Income tax expense

(575,531)

(258,640)

(38,119)

(1,107,105)

(810,820)

(119,500)

Share of income/(expense) in equity method

investments

26,747

(20,299)

(2,992)

29,892

708

104

Net income

1,964,559

3,077,572

453,579

4,003,740

5,233,928

771,385

Net income attributable to non-controlling

interests

(26,227)

(26,681)

(3,932)

(72,161)

(64,704)

(9,536)

Net income attributable to ZTO Express

(Cayman) Inc.

1,938,332

3,050,891

449,647

3,931,579

5,169,224

761,849

Net income attributable to ordinary

shareholders

1,938,332

3,050,891

449,647

3,931,579

5,169,224

761,849

Net earnings per share attributed to

ordinary shareholders

Basic

2.42

3.99

0.59

4.92

6.71

0.99

Diluted

2.37

3.78

0.56

4.81

6.44

0.95

Weighted average shares used in calculating

net earnings per ordinary share/ADS

Basic

799,752,637

765,053,979

765,053,979

799,123,030

770,575,485

770,575,485

Diluted

833,990,437

814,969,973

814,969,973

833,360,830

809,872,825

809,872,825

Net income

1,964,559

3,077,572

453,579

4,003,740

5,233,928

771,385

Other comprehensive income/(expense),

net of tax of nil:

Foreign currency translation adjustment

41,831

22,572

3,327

50,532

12,650

1,864

Comprehensive income

2,006,390

3,100,144

456,906

4,054,272

5,246,578

773,249

Comprehensive (income)/loss attributable to

non-controlling interests

(26,227)

(26,681)

(3,932)

(72,161)

(64,704)

(9,536)

Comprehensive income attributable to ZTO

Express (Cayman) Inc.

1,980,163

3,073,463

452,974

3,982,111

5,181,874

763,713

Unaudited Consolidated Balance Sheets Data:

As of

December 31,

June 30,

2025

2026

RMB

RMB

US$

(in thousands, except for share data)

ASSETS

Current assets:

Cash and cash equivalents

10,011,533

9,906,896

1,460,096

Restricted cash

29,129

44,638

6,579

Accounts receivable, net

1,287,475

1,627,114

239,807

Financing receivables

674,880

488,569

72,006

Short-term investment

15,620,892

21,400,891

3,154,101

Inventories

40,648

31,002

4,569

Advances to suppliers

719,277

760,403

112,070

Prepayments and other current assets

5,102,997

5,208,995

767,711

Amounts due from related parties

477,865

606,988

89,459

Total current assets

33,964,696

40,075,496

5,906,398

Investments in equity investees

1,951,910

2,159,811

318,317

Property and equipment, net

35,433,509

35,956,197

5,299,288

Land use rights, net

6,762,240

6,900,233

1,016,969

Intangible assets, net

52,758

39,599

5,836

Operating lease right-of-use assets

398,082

231,129

34,064

Goodwill

4,157,111

4,157,111

612,682

Deferred tax assets

1,103,655

1,234,137

181,889

Long-term investment

5,221,110

6,520,491

961,001

Long-term financing receivables

1,039,946

969,868

142,941

Other non-current assets

938,980

499,473

73,613

TOTAL ASSETS

91,023,997

98,743,545

14,552,998

LIABILITIES AND EQUITY

Current liabilities

Short-term bank borrowing

10,934,419

11,621,408

1,712,784

Accounts payable

2,577,229

2,605,564

384,013

Advances from customers

1,833,131

1,872,809

276,018

Income tax payable

279,541

314,134

46,298

Amounts due to related parties

796,660

626,792

92,378

Operating lease liabilities

139,787

89,207

13,147

Dividends payable

19,659

19,625

2,892

Other current liabilities

6,288,714

6,816,229

1,004,587

Total current liabilities

22,869,140

23,965,768

3,532,117

Long-term bank borrowing

18,000

17,000

2,505

Non-current operating lease liabilities

261,257

126,648

18,666

Deferred tax liabilities

615,073

710,382

104,697

Convertible senior notes

124,114

10,185,580

1,501,169

TOTAL LIABILITIES

23,887,584

35,005,378

5,159,154

Shareholders' equity

Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized;

795,528,169 shares issued and 790,812,316 shares outstanding as of December

31, 2025; 769,900,693 shares issued and 760,321,796 shares outstanding

as of June 30, 2026)

513

495

73

Additional paid-in capital

24,000,698

22,188,334

3,270,156

Treasury shares, at cost

(254,480)

(1,181,259)

(174,096)

Retained earnings

42,918,864

42,910,215

6,324,183

Accumulated other comprehensive loss

(281,266)

(268,616)

(39,589)

ZTO Express (Cayman) Inc. shareholders' equity

66,384,329

63,649,169

9,380,727

Non-controlling interests

752,084

88,998

13,117

Total Equity

67,136,413

63,738,167

9,393,844

TOTAL LIABILITIES AND EQUITY

91,023,997

98,743,545

14,552,998

Summary of Unaudited Consolidated Cash Flow Data:

Three Months Ended June 30,

Six Months Ended June 30,

2025

2026

2025

2026

RMB

RMB

US$

RMB

RMB

US$

(in thousands)

Net cash provided by operating activities

2,168,208

4,563,570

672,586

4,531,184

7,352,615

1,083,641

Net cash used in investing activities

(1,163,517)

(3,529,923)

(520,246)

(4,321,982)

(10,704,472)

(1,577,644)

Net cash (used in)/provided by financing activities

(117,713)

(2,433,546)

(358,660)

(378,804)

3,397,527

500,734

Effect of exchange rate changes on cash, cash

equivalents and restricted cash

(19,706)

(84,631)

(12,473)

(32,266)

(134,798)

(19,867)

Net increase/(decrease) in cash, cash equivalents

and restricted cash

867,272

(1,484,530)

(218,793)

(201,868)

(89,128)

(13,136)

Cash, cash equivalents and restricted cash at

beginning of period

12,461,807

11,442,119

1,686,360

13,530,947

10,046,717

1,480,703

Cash, cash equivalents and restricted cash at end of

period

13,329,079

9,957,589

1,467,567

13,329,079

9,957,589

1,467,567

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:

As of

June 30,

June 30,

2025

2026

RMB

RMB

US$

(in thousands)

Cash and cash equivalents

13,291,796

9,906,896

1,460,096

Restricted cash, current

22,684

44,638

6,579

Restricted cash, non-current

14,599

6,055

892

Total cash, cash equivalents and restricted cash

13,329,079

9,957,589

1,467,567

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended June 30,

Six Months Ended June 30,

2025

2026

2025

2026

RMB

RMB

US$

RMB

RMB

US$

(in thousands, except for share and per share data)

Net income

1,964,559

3,077,572

453,579

4,003,740

5,233,928

771,385

Add:

Share-based compensation expense (1)

2,994

1,197

176

223,263

222,316

32,765

Impairment of Goodwill

84,431

-

-

84,431

-

-

Loss on disposal of equity investees and

subsidiary, net of income taxes

714

7,294

1,075

593

6,899

1,017

Adjusted net income

2,052,698

3,086,063

454,830

4,312,027

5,463,143

805,167

Net income

1,964,559

3,077,572

453,579

4,003,740

5,233,928

771,385

Add:

Depreciation

770,270

777,399

114,574

1,559,378

1,690,048

249,082

Amortization

38,306

47,086

6,940

76,125

96,297

14,192

Interest expenses

98,112

70,627

10,409

166,988

120,899

17,818

Income tax expenses

575,531

258,640

38,119

1,107,105

810,820

119,500

EBITDA

3,446,778

4,231,324

623,621

6,913,336

7,951,992

1,171,977

Add:

Share-based compensation expense

2,994

1,197

176

223,263

222,316

32,765

Impairment of Goodwill

84,431

-

-

84,431

-

-

Loss on disposal of equity investees and

subsidiary

714

8,829

1,301

567

8,351

1,231

Adjusted EBITDA

3,534,917

4,241,350

625,098

7,221,597

8,182,659

1,205,973

(1) Net of income taxes of nil

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended June 30,

Six Months Ended June 30,

2025

2026

2025

2026

RMB

RMB

US$

RMB

RMB

US$

(in thousands, except for share and per share data)

Net income attributable to ordinary

shareholders

1,938,332

3,050,891

449,647

3,931,579

5,169,224

761,849

Add:

Share-based compensation expense (1)

2,994

1,197

176

223,263

222,316

32,765

Impairment of Goodwill

84,431

-

-

84,431

-

-

Loss on disposal of equity investees

and subsidiary, net of income taxes

714

7,294

1,075

593

6,899

1,017

Adjusted Net income attributable to

ordinary shareholders

2,026,471

3,059,382

450,898

4,239,866

5,398,439

795,631

Weighted average shares used in

calculating net earnings per ordinary

share/ADS

Basic

799,752,637

765,053,979

765,053,979

799,123,030

770,575,485

770,575,485

Diluted

833,990,437

814,969,973

814,969,973

833,360,830

809,872,825

809,872,825

Net earnings per share/ADS attributable to

ordinary shareholders

Basic

2.42

3.99

0.59

4.92

6.71

0.99

Diluted

2.37

3.78

0.56

4.81

6.44

0.95

Adjusted net earnings per share/ADS

attributable to ordinary shareholders

Basic

2.53

4.00

0.59

5.31

7.01

1.03

Diluted

2.48

3.79

0.56

5.18

6.73

0.99

(1) Net of income taxes of nil

For investor and media inquiries, please contact:
ZTO Express (Cayman) Inc.
Investor Relations
E-mail: [email protected]
Phone: +86 21 5980 4508

SOURCE ZTO Express (Cayman) Inc.

Posted by Defense World Staff on Jul 30th, 2026

ZTO Express (Cayman) Inc. (NYSE:ZTO – Get Free Report) has earned a consensus rating of “Buy” from the six research firms that are covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a hold rating, two have issued a buy rating and two have given a strong buy rating to the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $27.0333.

A number of research firms have weighed in on ZTO. Wall Street Zen upgraded ZTO Express (Cayman) from a “hold” rating to a “buy” rating in a research report on Saturday, April 11th. JPMorgan Chase & Co. lifted their price target on ZTO Express (Cayman) from $25.00 to $29.00 and gave the company an “overweight” rating in a research report on Monday, April 13th. Weiss Ratings downgraded ZTO Express (Cayman) from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, May 20th. Zacks Research upgraded ZTO Express (Cayman) from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 7th. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $30.10 target price on shares of ZTO Express (Cayman) in a research note on Wednesday, May 20th.

Get Our Latest Stock Analysis on ZTO Express (Cayman)

ZTO Express (Cayman) Price Performance NYSE ZTO opened at $23.91 on Monday. ZTO Express has a 12 month low of $17.74 and a 12 month high of $26.20. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.64 and a quick ratio of 1.64. The firm has a market capitalization of $13.48 billion, a PE ratio of 14.67, a P/E/G ratio of 0.91 and a beta of -0.22. The company’s 50 day simple moving average is $22.95 and its 200 day simple moving average is $23.69.

Institutional Investors Weigh In On ZTO Express (Cayman) A number of institutional investors and hedge funds have recently bought and sold shares of ZTO. Caitong International Asset Management Co. Ltd bought a new position in shares of ZTO Express (Cayman) during the 4th quarter valued at about $25,000. Leonteq Securities AG bought a new stake in shares of ZTO Express (Cayman) in the 4th quarter worth approximately $30,000. Atlas Capital Advisors Inc. bought a new stake in shares of ZTO Express (Cayman) in the 4th quarter worth approximately $35,000. Smartleaf Asset Management LLC lifted its stake in ZTO Express (Cayman) by 61.4% during the second quarter. Smartleaf Asset Management LLC now owns 2,021 shares of the transportation company’s stock valued at $36,000 after purchasing an additional 769 shares during the last quarter. Finally, Assetmark Inc. lifted its stake in ZTO Express (Cayman) by 1,713.0% during the fourth quarter. Assetmark Inc. now owns 2,375 shares of the transportation company’s stock valued at $50,000 after purchasing an additional 2,244 shares during the last quarter. 41.65% of the stock is owned by institutional investors and hedge funds.

About ZTO Express (Cayman) (Get Free Report)

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.

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Here are three stocks with buy rank and strong income characteristics for investors to consider today, July 8th:

CION Investment Corporation (CION - Free Report) : This externally managed, non-diversified closed-end investment company, with an objective is to generate current income and modest capital appreciation by primarily investing in senior secured debt, first lien, second lien and unitranche loans of U.S. middle-market companies, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.9% over the last 60 days.

This Zacks Rank #1 (Strong Buy) company has a dividend yield of 18.8%, compared with the industry average of 11.7%.

ZTO Express Cayman (ZTO - Free Report) : This company, which is a leading player in the field of express delivery in China, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.8% over the last 60 days.

This Zacks Rank #1 company has a dividend yield of 3.3%, compared with the industry average of 0.0%.

Karooooo (KARO - Free Report) : This company, which is a provider in the telematics industry which offers real-time mobility data analytics solutions for smart transportation, has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.8% over the last 60 days.

This Zacks Rank #1 company has a dividend yield of 2.2%, compared with the industry average of 0.0%.

See the full list of top ranked stocks here.

Find more top income stocks with some of our great premium screens

Key Takeaways ZTO's earnings estimates for 2026 have been revised higher, signaling solid broker confidence.ZTO expects its 2026 parcel volume to be between 42.37 billion and 43.52 billion (up 10-13% year/year growth).ZTO has gained in the past year and outperforms its industry, but lags its peers like SNDR and EXPD. ZTO Express (ZTO - Free Report) performed well in the past year and has the potential to sustain the momentum in the future. The positive sentiment surrounding ZTO Express stock is evident from the fact that the Zacks Consensus Estimate for the full-year 2026 earnings has been revised upward in the past 90 days. The consensus mark for full-year 2027 earnings has also been projected downward in the past 90 days.

The favorable estimate revisions indicate brokers’ confidence in the stock.

Image Source: Zacks Investment Research

Given this backdrop, the question now arises whether it is worth buying, holding, or selling the ZTO Express stock at current prices. Let us delve deeper to find out.

Tailwinds Working in Favor of ZTO StockZTO Express’ top line continues to benefit from the strong performance of the core express delivery services unit. Notably, revenues from the core express delivery business increased 22.5% year over year in first-quarter 2026, 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. Based on current market and operating conditions, ZTO Express expects its 2026 parcel volume guidance in the range of 42.37 billion to 43.52 billion (reflecting 10-13% year over year growth).

ZTO Express’s efforts to reward its shareholders even in the present uncertain scenario are noteworthy. 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. Such shareholder-friendly efforts boost investor confidence and positively impact the company’s bottom line.

Impressive Valuation Picture for ZTO ExpressZTO Express looks cheap from a valuation standpoint. Considering the forward 12-month price-to-earnings ratio (P/E-F12M), ZTO Express is trading at a discount compared to the industry.

The stock has a forward 12-month P/E-F12M of 10.31X compared with 16.40X for the industry over the past five years. The company’s forward 12-month P/E-F12M ratio is also below the median level of 13.47X over the past five years. These factors indicate that the stock’s valuation is attractive. ZTO Express has a Value Score of A.

ZTO P/E Ratio (Forward 12 Months) Vs. Industry Image Source: Zacks Investment Research

ZTO Stock’s Price PerformanceShares of ZTO Express have gained 24% over the past year, outperforming the Zacks  Transportation - Equipment and Leasing industry’s  16.7% increase. However, the company fared unfavorably when compared with that of other industry players, Expeditors International of Washington, Inc. (EXPD - Free Report) and Schneider National, Inc. (SNDR - Free Report) .

ZTO Stock’s One-Year Price Comparison Image Source: Zacks Investment Research

Time to Buy ZTO StockApart from being attractively valued, the upbeat performance of the core express delivery services segment is a positive for ZTO Express. The uptick was driven by an increase in parcel volume and an increase in parcel unit price. ZTO Express expects its 2026 parcel volume guidance to be in the range of 42.37 billion-43.52 billion, reflecting an increase of 10-13% year over year. ZTO Express’s efforts to reward its shareholders look encouraging.

We believe that the positives surrounding the stock (as highlighted throughout the write-up) outweigh the concerns regarding higher selling, general and administrative expenses, which are pushing up operating expenses and hurting the bottom line, coupled with the highly competitive domestic express delivery market. We, therefore, suggest investors add ZTO Express stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

For Immediate ReleaseChicago, IL – June 25, 2026 – Today, Zacks Equity Research Expeditors International of Washington (EXPD - Free Report) , C.H. Robinson Worldwide (CHRW - Free Report) and ZTO Express (Cayman) (ZTO - Free Report)

Industry: Transportation Services

Link: https://www.zacks.com/commentary/2942256/3-transport-service-stocks-to-monitor-amid-challenging-industry-trends

The Zacks Transportation-Services industry continues to face a tough operating environment. Headwinds like weak freight rates, high inflation, and ongoing and geopolitical woes continue to hurt prospects. Even with the interim agreement between the United States and Iran, economic uncertainty remains firmly in place and investor sentiment continues to fluctuate. Adding to these concerns is the prolonged Russia-Ukraine conflict, which has intensified.

That said, there remains an underlying case for long-term optimism. Supported by strong fundamentals, companies such as Expeditors International of Washington, C.H. Robinson Worldwide and ZTO Express (Cayman) are worth keeping an eye on. They are well-positioned to overcome the obstacles and capitalize on opportunities when industry conditions improve.

About the IndustryThe companies belonging to the Zacks Transportation-Services industry offer transporters, logistics, leasing and maintenance services. Some industry players focus on the business of global logistics management, including international freight forwarding. Third-party logistics entities provide innovative supply-chain solutions. They also focus on services like product sourcing, warehousing and freight shipping.

These companies have expertise in trucking, air and ocean transportation. Some players in this industry deliver domestic and international express delivery services. The well-being of the companies in this industrial cohort is directly proportional to the health of the economy. An uptick in manufactured and retail goods, favorable pricing and improvement in global economic conditions bode well for industry participants.

3 Trends Shaping the Future of the Transportation-Services IndustryFreight Downturn Persists: Although economic activities picked up from the pandemic gloom, lingering supply-chain disruptions continue to dent stocks in the industry. Below-par freight rates led by the oversupply of capacity are squeezing profit margins, thereby denting the industry’s prospects. Highlighting the weak freight demand, the Cass Freight Shipments Index declined 1.2% year over year in May. This measure has deteriorated year over year each of the past nine months, which confirms the overall declining trend.

Economic Uncertainty Refuses to Fade: The industry’s prospects are highly correlated with the prevalent economic health. Volatile inflation data, geopolitical tensions and labor market concerns have dented consumer confidence and have time and again unsettled markets. In its latest policy meeting, the Fed did not go for a rate cut but held rates at 3.50-3.75%. The central bank, while adopting a hawkish stance, also trimmed its 2026 GDP growth forecast to 2.2% from 2.4%. The recent intensification of the prolonged Russia-Ukraine conflict has aggravated the uncertain scenario.

Cost Cuts to Boost Margins: The industry is facing input cost inflation, transport and logistics costs, and the impact of tariffs. Industry players are constantly implementing cost-reduction actions, which are likely to help sustain margins in this scenario. The companies are focused on streamlining their operations and realigning around high-growth key markets or customer segments to enhance performance.

Zacks Industry Rank Indicates Dull ProspectsThe Zacks Transportation-Services industry is a 20-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #161, which places it in the bottom 35% of 247 Zacks industries.

The group’s Zacks Industry Rank, the average of the Zacks Rank of all member stocks, indicates dismal near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. The industry's earnings estimate for 2026 has decreased 10% year over year.

Before we present a few stocks from the industry that you may want to retain or buy, let’s take a look at the industry’s recent stock market performance and the valuation picture.

Industry Lags S&P 500 and SectorThe Zacks Transportation-Services industry has underperformed the Zacks S&P 500 composite and the broader Transportation sector in a year.

The industry has improved 15.3% over this period compared with the S&P 500's appreciation of 24.4% and the broader sector’s uptick of 22.3%.

Industry's Current ValuationBased on the forward 12-month price-to-sales, a commonly used multiple for valuing transportation services stocks, the industry is currently trading at 1.56X compared with the S&P 500's 5.01X. The value is higher than the sector's trailing 12-month P/S of 1.49X.

Over the past five years, the industry has traded as high as 3.16X, as low as 1.44X and at the median of 1.85X.

3 Transport Services Stocks to Watch NowExpeditors, a leading third-party logistics provider, is based in Seattle, WA. The company currently sports a Zacks Rank# 1 (Strong Buy). EXPD’s earnings beat the Zacks Consensus Estimate in each of the past four quarters, with an average surprise of 14%.

While weak volumes (concerning air-freight tonnage and ocean containers) stemming from soft demand and declining rates are hurting EXPD’s performance, efforts to cut costs in the face of demand weakness are driving its bottom line.

You can see the complete list of today’s Zacks #1 Rank stocks here.

ZTO Express is a leading player in the field of express delivery in China. This Shanghai-based company went public in 2016. ZTO Express and its network partners provide domestic and international express delivery services. Other value-added services supplement the offerings. In China, it mainly focuses on providing express deliveries of parcels, which mostly weigh below 50 kilograms. The expected delivery time ranges from 24-72 hours.

ZTO Express carries a Zacks Rank #2 (Buy). The company has a long-term earnings growth expectation of 13.5%, primarily driven by parcel volume. ZTO Express expects its 2026 parcel volume guidance to be in the range of 42.37-43.52 billion, reflecting an increase of 10-13% year over year.

C.H. Robinson’s consistent initiatives to reward shareholders through dividends and share repurchases are encouraging. Such shareholder-friendly moves instill investor confidence and positively impact the company's bottom line. A decrease in operating expenses aids CHRW's bottom-line growth.

C.H. Robinsoncurrently carries a Zacks Rank #3 (Hold). CHRW’s AI integration drives real-time pricing, costing and automation through a powerful mix of machine learning, large language models and autonomous agents. By acting on live supply-demand signals with humans in the loop, CHRW boosts margins, speeds execution and strengthens its competitive edge across quoting, booking, tracking and payments.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

ZTO Express Cayman (ZTO - Free Report) is a stock many investors are watching right now. ZTO is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.56, which compares to its industry's average of 16.24. Over the past year, ZTO's Forward P/E has been as high as 14.00 and as low as 9.23, with a median of 10.72.

Finally, investors should note that ZTO has a P/CF ratio of 9.63. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.86. ZTO's P/CF has been as high as 13.96 and as low as 8.08, with a median of 9.89, all within the past year.

These are only a few of the key metrics included in ZTO Express Cayman's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ZTO looks like an impressive value stock at the moment.

Key Takeaways ZTO's earnings estimates for 2026 have been revised higher, signaling solid broker confidence.ZTO expects 2026 parcel volume to be in the range of 42.37-43.52 billion (up 10-13% year over year growth).ZTO has gained 32.8% in the past year, outperforming the transportation-services industry. ZTO Express (ZTO - Free Report)  looks cheap from a valuation standpoint. Considering the forward 12-month price-to-earnings ratio (P/E-F12M), ZTO Express is trading at a discount compared to the industry.

The stock has a forward 12-month P/E-F12M of 10.98X compared with 16.49X for the industry over the past five years. The company’s forward 12-month P/E-F12M ratio is also above the median level of 13.56X over the past five years. These factors indicate that the stock’s valuation is attractive. ZTO Express has a Value Score of A.

ZTO P/E Ratio (Forward 12 Months) Vs. Industry Image Source: Zacks Investment Research

Now, the question is whether it is worth buying, holding, or selling the ZTO Express stock at current prices. Let us delve deeper to find out.

Tailwinds Working in Favor of ZTO StockZTO Express’ top line continues to benefit from the strong performance of the core express delivery services unit. Notably, revenues from the core express delivery business increased 22.5% year over year in first-quarter 2026, 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. Based on current market and operating conditions, ZTO Express expects its 2026 parcel volume guidance in the range of 42.37 billion to 43.52 billion (reflecting 10-13% year over year growth).

ZTO Express’s efforts to reward its shareholders even in the present uncertain scenario are noteworthy. 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. Such shareholder-friendly efforts boost investor confidence and positively impact the company’s bottom line.

ZTO Stock’s Price PerformanceShares of ZTO Express have gained 32.8% over the past year, outperforming the Zacks  Transportation - Equipment and Leasing industry’s 20.6% increase. However, the company performed unfavorably when compared with that of other industry players, Expeditors International of Washington, Inc. (EXPD - Free Report) and Schneider National, Inc. (SNDR - Free Report) .

ZTO Stock’s One-Year Price Comparison Image Source: Zacks Investment Research

What Do Earnings Estimates Say for ZTO?The positive sentiment surrounding ZTO stock is evident from the fact that the Zacks Consensus Estimate for 2026 and 2027 earnings has also been projected northward in the past 90 days.

Image Source: Zacks Investment Research

The favorable estimate revisions indicate brokers’ confidence in the stock.

Time to Buy ZTO StockApart from being attractively valued, the upbeat performance of the core express delivery services segment is a positive for ZTO Express. The uptick was driven by an increase in parcel volume and an increase in parcel unit price. ZTO Express expects its 2026 parcel volume guidance to be in the range of 42.37 billion-43.52 billion, reflecting an increase of 10-13% year over year. ZTO Express’s efforts to reward its shareholders look encouraging.

We believe that the positives surrounding the stock (as highlighted throughout the write-up) outweigh the concerns regarding higher selling, general and administrative expenses, which are pushing up operating expenses and hurting the bottom line, coupled with the highly competitive domestic express delivery market. We, therefore, suggest investors add ZTO Express stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ILPT, WLY and ZTO made it to the Zacks Rank #1 (Strong Buy) value stocks list on April 23rd, 2026.

ZTO Express Cayman (ZTO) has been upgraded to a Zacks Rank #1 (Strong Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

Here is how EuroDry (EDRY) and ZTO Express (Cayman) Inc. (ZTO) have performed compared to their sector so far this year.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

9.7 Billion Parcel Volume Grew 7.4 Points Faster than Industry Average
Adjusted Net Income Increased 5.2% to RMB2.4 Billion

, /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 first quarter ended March 31, 2026[1]. The Company grew parcel volume by 13.2% year over year while maintaining high quality of service and customer satisfaction. Adjusted net income increased 5.2%[2] to RMB2.4 billion. Net cash generated from operating activities was RMB2.8 billion.

First Quarter 2026 Financial Highlights

Revenues were RMB13,282.4 million (US$1,925.5 million), an increase of 22.0% from RMB10,891.5 million in the same period of 2025. Gross profit was RMB3,235.2 million (US$469.0 million), an increase of 20.3% from RMB2,689.2 million in the same period of 2025. Net income was RMB2,156.4 million (US$312.6 million), an increase of 5.7% from RMB2,039.2 million in the same period of 2025. Adjusted EBITDA[3] was RMB3,941.3 million (US$571.4 million), an increase of 6.9% from RMB3,686.7 million in the same period of 2025. Adjusted net income was RMB2,377.1 million (US$344.6 million), an increase of 5.2% from RMB2,259.3 million in the same period of 2025. Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB2.73 (US$0.40) and RMB2.68 (US$0.39), an increase of 9.2% and 9.8% from RMB2.50 and RMB2.44 in the same period of 2025, respectively. Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders[5] were RMB3.01 (US$0.44) and RMB2.95 (US$0.43), an increase of 8.7% and 8.9% from RMB2.77 and RMB2.71 in the same period of 2025 respectively. Net cash provided by operating activities was RMB2,789.0 million (US$404.3 million), compared with RMB2,363.0 million in the same period of 2025. Operational Highlights for First Quarter 2026

Parcel volume was 9,668 million, increased 13.2% from 8,539 million in the same period of 2025. Number of pickup/delivery outlets was over 31,000 as of March 31, 2026. Number of direct network partners was approximately 6,000 as of March 31, 2026. Number of self-owned line-haul vehicles was over 10,000 as of March 31, 2026. Number of line-haul routes between sorting hubs was approximately 3,800 as of March 31, 2026. Number of sorting hubs was 93 as of March 31, 2026, among which 88 are operated by the Company and 5 by the Company's network partners. [1] An investor relations presentation accompanies this earnings release and can be found at http://zto.investorroom.com.

[2] Adjusted net income is a non-GAAP financial measure, which is defined as net income before share-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary and corresponding tax impact which management aims to better represent the underlying business operations.

[3] Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses, and further adjusted to exclude the shared-based compensation expense and non-recurring items such as impairment of investments in equity investees, gain/(loss) on disposal of equity investment and subsidiary which management aims to better represent the underlying business operations.

[4] One ADS represents one Class A ordinary share.

[5] Adjusted basic and diluted earnings per American depositary share attributable to ordinary shareholders is a non-GAAP financial measure. It is defined as adjusted net income attributable to ordinary shareholders divided by weighted average number of basic and diluted American depositary shares, respectively.

Mr. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO, commented, "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."

Mr. Lai added, "China's express delivery industry is benefiting from the lasting effect of the anti-involution policy. It is well demonstrated by this quarter's industry-wide profit expansion, some faster than its volume growth, that there was an increasing focus on quality growth. ZTO's Quality-First strategy is consistent with regulatory attention as our operating efficiency continues to lead the industry and our effort to drive fairness and transparency across the entire network has generated positive impact on sustainable long-term growth. Shared-Success is never meant to be a corporate slogan, and our work in being fair and supportive of our partners never ends especially given the depth and width of our network footprint. By relying on digitization and diligent follow-through, we are seeing better alignment of strategy consensus and execution cohesiveness from headquarter to the furthest-reached outlets."

Ms. Huiping Yan, Chief Financial Officer of ZTO, commented, "For the first quarter, ZTO's core express ASP increased 8.2%, driven by a favorable mix-shift towards key accounts, which included fast-growing reverse logistics volume, and its positive impact more than offset the per unit increase in volume incentives. Combined unit sorting and transportation costs decreased 6 cents, driven largely by volume-leveraged productivity gain. SG&A excluding SBC as a percentage of revenue improved to approximately 4.5% compared to 4.7% in the same period last year. Cash flow from operating activities was 2.8 billion, and capital spending was 1.8 billion."

Ms. Yan added, "The sustainable growth strategy we focused on throughout the years is equally effective during economic stabilization and recovery. Our unique partner-franchise model requires fine tuning from time to time to maintain equitable sharing of the cost and profit. Our volume growth against industry deceleration came from the consistency of anti-involution policy as well as our initiatives to drive reasonable profit allocation for everyone under the ZTO brand. We aim to strengthen our volume leadership, and we are maintaining our annual parcel growth guidance at 10-13% over last year."

First Quarter 2026 Unaudited Financial Results

Three Months Ended March 31,

2025

2026

RMB

%

RMB

US$

%

(in thousands, except percentages)

Express delivery services

10,122,290

92.9

12,523,779

1,815,567

94.3

Freight forwarding services

179,219

1.7

155,910

22,602

1.2

Sale of accessories

560,297

5.1

577,675

83,745

4.3

Others

29,659

0.3

25,000

3,624

0.2

Total revenues

10,891,465

100.0

13,282,364

1,925,538

100.0

Total Revenues were RMB13,282.4 million (US$1,925.5 million), increased 22.0% from RMB10,891.5 million in the same period of 2025. Revenue from the core express delivery business increased by 22.5% compared to the same period of 2025 as a result of a 13.2% growth in parcel volume and an 8.2% increase in parcel unit price. Key account revenue, generated by direct sales organizations, increased by 92.2% mainly driven by increase in e-commerce return parcels. Revenue from freight forwarding services decreased by 13.0% compared to the same period of 2025. Revenue from sales of accessories, largely consisted of sales of thermal paper for digital waybills, increased by 3.1%. Other revenues were mainly derived from financing services.

Three Months Ended March 31,

2025

2026

RMB

%

RMB

US$

%

(in thousands, except percentages)

Line-haul transportation cost

3,483,065

32.0

3,530,168

511,767

26.6

Sorting hub operating cost

2,314,595

21.3

2,454,271

355,795

18.5

Freight forwarding cost

172,792

1.6

154,265

22,364

1.2

Cost of accessories sold

133,259

1.2

127,589

18,497

1.0

Other costs

2,098,534

19.2

3,780,850

548,107

28.3

Total cost of revenues

8,202,245

75.3

10,047,143

1,456,530

75.6

Total cost of revenues was RMB10,047.1 million (US$1,456.5 million), an increase of 22.5% from RMB8,202.2 million in the same period last year.

Line-haul transportation cost was RMB3,530.2 million (US$511.8 million), increased 1.4% from RMB3,483.1 million in the same period last year. The unit transportation cost decreased 9.8% or 4 cents mainly attributable to better economies of scale and improved load rate through more effective route planning.

Sorting hub operating cost was RMB2,454.3 million (US$355.8 million), increased 6.0% from RMB2,314.6 million in the same period last year. The increase primarily consisted of (i) RMB74.3 million (US$10.8 million) increase in labor-associated costs partially offset by automation-driven efficiency improvements, and (ii) RMB43.1 million (US$6.3 million) increase in depreciation and amortization costs associated with automation facilities and equipment upgrades. As of March 31, 2026, there were 780 sets of automated sorting equipment in service, compared to 631 sets as of March 31, 2025.

Cost of accessories sold was RMB127.6 million (US$18.5 million), decreased by 4.3% compared with RMB133.3 million in the same period last year.

Other costs were RMB3,780.9 million (US$548.1 million), increased 80.2% from RMB2,098.5 million in the same period last year, which was mainly attributable to an increase of RMB1,711.3 million (US$248.1 million) for pickup and dispatching costs paid to network partners associated with serving key account customers.

Gross Profit was RMB3,235.2 million (US$469.0 million), increased by 20.3% from RMB2,689.2 million in the same period last year. Gross margin rate was 24.4% compared to 24.7% in the same period last year.

Total Operating Expenses were RMB690.0 million (US$100.0 million), compared to RMB283.8 million in the same period last year.

Selling, general and administrative expenses were RMB815.7 million (US$118.2 million), increased by 10.6% from RMB737.5 million in the same period last year, mainly due to (i) RMB64.0 million (US$9.3 million) increase in compensation and benefit expenses, and (ii) RMB11.4 million (US$1.6 million) increase in depreciation and amortization costs associated with administrative facilities and equipment.

Other operating income, net was RMB125.7 million (US$18.2 million), compared to RMB453.7 million in the same period last year. Other operating income mainly consisted of (i) RMB80.9 million (US$11.7 million) of government subsidies and tax rebates, and (ii) RMB51.4 million (US$7.5 million) of rental income.

Income from operations was RMB2,545.3 million (US$369.0 million), increased 5.8% from RMB2,405.4 million for the same period last year. The operating margin rate was 19.2% compared to 22.1% in the same period last year.

Interest income was RMB165.9 million (US$24.1 million), compared with RMB198.4 million in the same period last year.

Interest expenses was RMB50.3 million (US$7.3 million), compared with RMB68.9 million in the same period last year.

Gain from fair value changes of financial instruments was RMB54.9 million (US$8.0 million), compared with a gain of RMB36.6 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 RMB552.2 million (US$80.0 million) compared to RMB531.6 million in the same period last year. Overall income tax rate was 20.5%, decreased by 0.2 percentage points year over year.

Net income was RMB2,156.4 million (US$312.6 million), which increased by 5.7% increase from RMB2,039.2 million in the same period last year.

Basic and diluted earnings per ADS attributable to ordinary shareholders were RMB2.73 (US$0.40) and RMB2.68 (US$0.39), compared to basic and diluted earnings per ADS of RMB2.50 and RMB2.44 in the same period last year, respectively.

Adjusted basic and diluted earnings per ADS attributable to ordinary shareholders were RMB3.01 (US$0.44) and RMB2.95 (US$0.43), compared with RMB2.77 and RMB2.71 in the same period last year, respectively.

Adjusted net income was RMB2,377.1 million (US$344.6 million), compared with RMB2,259.3 million during the same period last year.

EBITDA[1] was RMB3,720.7 million (US$539.4 million), compared with RMB3,466.6 million in the same period last year.

Adjusted EBITDA was RMB3,941.3 million (US$571.4 million), compared to RMB3,686.7 million in the same period last year.

Net cash provided by operating activities was RMB2,789.0 million (US$404.3 million), compared with RMB2,363.0 million in the same period last year.

[1] EBITDA is a non-GAAP financial measure, which is defined as net income before depreciation, amortization, interest expenses and income tax expenses which management aims to better represent the underlying business operations.

Resignation of Non-Executive Director and Termination of Investor Rights Agreement

The Board announces that Ms. Di XU has tendered her resignation as a non-executive director of the Company, with effect from May 20, 2026 given the recent termination of the investor rights agreement entered by and among the Company, the Company's founders and subsidiaries of Alibaba Group Holdings Limited in June 2018. Ms. Xu has confirmed that (i) she has no disagreement with the board of directors of the Company (the "Board") and (ii) there is no matter in respect of her resignation that needs to be brought to the attention of the shareholders of the Company or The Stock Exchange of Hong Kong. The Board would like to take this opportunity to express its gratitude to Ms. Xu for her valuable contribution to the Company during her tenure.

Company Share Repurchase Program

The Board has approved a new share repurchase program in March 2026, authorizing the repurchase of up to US$1.5 billion of its shares over the next 24 months, effective from March 20, 2026, through March 20, 2028. The Company expects to fund these repurchases utilizing its existing cash balance.

Business Outlook

Based on current market and operating conditions, the Company reiterates that its parcel volume for 2026 is expected to increase by 10% to 13% year over year, representing a parcel volume range of 42.37 billion to 43.52 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 RMB6.898 to US$1.00, the noon buying rate on March 31, 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, May 19, 2026 (8:30 AM Beijing Time on Wednesday, May 20, 2026).

Dial-in details for the earnings conference call are as follows:

United States:

1-888-317-6003

Hong Kong:

800-963-976

Mainland China:

4001-206-115

International:

1-412-317-6061

Passcode:

2836360

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 May 25, 2026:

United States:

1-855-669-9658

International:

1-412-317-0088

Passcode:

1895291

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.

UNAUDITED CONSOLIDATED FINANCIAL DATA

Summary of Unaudited Consolidated Comprehensive Income Data:

Three Months Ended March 31,

2025

2026

RMB

RMB

US$

(in thousands, except for share and per share data)

Revenues

10,891,465

13,282,364

1,925,538

Cost of revenues

(8,202,245)

(10,047,143)

(1,456,530)

Gross profit

2,689,220

3,235,221

469,008

Operating (expenses)/income:

Selling, general and administrative

(737,511)

(815,664)

(118,246)

Other operating income, net

453,669

125,711

18,224

Total operating expenses

(283,842)

(689,953)

(100,022)

Income from operations

2,405,378

2,545,268

368,986

Other income/(expenses):

Interest income

198,392

165,945

24,057

Interest expense

(68,876)

(50,272)

(7,288)

Gain from fair value changes of financial instruments

36,613

54,944

7,965

Gain on disposal of equity investees, subsidiary and others

147

478

69

Foreign currency exchange loss before tax

(4,044)

(28,834)

(4,180)

Income before income tax, and share of income in equity method investments

2,567,610

2,687,529

389,609

Income tax expense

(531,574)

(552,180)

(80,049)

Share of income in equity method investments

3,145

21,007

3,045

Net income

2,039,181

2,156,356

312,605

Net income attributable to non-controlling interests

(45,934)

(38,023)

(5,512)

Net income attributable to ZTO Express (Cayman) Inc.

1,993,247

2,118,333

307,093

Net income attributable to ordinary shareholders

1,993,247

2,118,333

307,093

Net earnings per share attributed to ordinary shareholders

Basic

2.50

2.73

0.40

Diluted

2.44

2.68

0.39

Weighted average shares used in calculating net earnings per ordinary share/ADS

Basic

798,486,427

776,158,342

776,158,342

Diluted

832,052,527

798,341,566

798,341,566

Net income

2,039,181

2,156,356

312,605

Other comprehensive income/(expense) ,net of tax of nil:

Foreign currency translation adjustment

8,701

(9,922)

(1,438)

Comprehensive income

2,047,882

2,146,434

311,167

Comprehensive income attributable to non-controlling interests

(45,934)

(38,023)

(5,512)

Comprehensive income attributable to ZTO Express (Cayman) Inc.

2,001,948

2,108,411

305,655

Unaudited Consolidated Balance Sheets Data:

As of

December 31,

March 31,

2025

2026

RMB

RMB

US$

(in thousands, except for share data)

ASSETS

Current assets:

Cash and cash equivalents

10,011,533

11,406,935

1,653,658

Restricted cash

29,129

29,129

4,223

Accounts receivable, net

1,287,475

1,264,820

183,360

Financing receivables

674,880

532,466

77,191

Short-term investment

15,620,892

19,079,372

2,765,928

Inventories

40,648

39,042

5,660

Advances to suppliers

719,277

743,940

107,849

Prepayments and other current assets

5,102,997

5,250,750

761,199

Amounts due from related parties

477,865

506,822

73,474

Total current assets

33,964,696

38,853,276

5,632,542

Investments in equity investees

1,951,910

2,164,047

313,721

Property and equipment, net

35,433,509

36,233,881

5,252,810

Land use rights, net

6,762,240

6,875,348

996,716

Intangible assets, net

52,758

45,466

6,591

Operating lease right-of-use assets

398,082

331,050

47,992

Goodwill

4,157,111

4,157,111

602,655

Deferred tax assets

1,103,655

1,191,798

172,774

Long-term investment

5,221,110

6,292,110

912,164

Long-term financing receivables

1,039,946

989,488

143,446

Other non-current assets

938,980

645,036

93,511

TOTAL ASSETS

91,023,997

97,778,611

14,174,922

LIABILITIES AND EQUITY

Current liabilities

Short-term bank borrowing

10,934,419

11,089,280

1,607,608

Accounts payable

2,577,229

2,420,258

350,864

Advances from customers

1,833,131

1,717,342

248,962

Income tax payable

279,541

287,950

41,744

Amounts due to related parties

796,660

92,221

13,369

Operating lease liabilities

139,787

120,382

17,452

Dividends payable

19,659

2,085,103

302,276

Other current liabilities

6,288,714

5,876,810

851,958

Total current liabilities

22,869,140

23,689,346

3,434,233

Long-term bank borrowing

18,000

17,000

2,464

Non-current operating lease liabilities

261,257

218,721

31,708

Deferred tax liabilities

615,073

628,469

91,109

Convertible senior bond

124,114

10,347,781

1,500,113

TOTAL LIABILITIES

23,887,584

34,901,317

5,059,627

Shareholders' equity

    Ordinary shares (US$0.0001 par value; 10,000,000,000 shares authorized;
    795,528,169 shares issued and 790,812,316 shares outstanding as of December
    31, 2025; 769,900,693 shares issued and 766,482,022 shares outstanding
    as of March 31, 2026)

513

495

72

Additional paid-in capital

24,000,698

22,795,854

3,304,705

Treasury shares, at cost

(254,480)

(245,970)

(35,658)

Retained earnings

42,918,864

39,859,455

5,778,408

Accumulated other comprehensive loss

(281,266)

(291,188)

(42,213)

ZTO Express (Cayman) Inc. shareholders' equity

66,384,329

62,118,646

9,005,314

Non-controlling interests

752,084

758,648

109,981

Total Equity

67,136,413

62,877,294

9,115,295

TOTAL LIABILITIES AND EQUITY

91,023,997

97,778,611

14,174,922

Summary of Unaudited Consolidated Cash Flow Data:

Three Months Ended March 31,

2025

2026

RMB

RMB

US$

(in thousands)

Net cash provided by operating activities

2,362,976

2,789,045

404,327

Net cash used in investing activities

(3,158,465)

(7,174,549)

(1,040,091)

Net cash (used in)/provided by financing activities

(261,091)

5,831,073

845,328

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(12,560)

(50,167)

(7,273)

Net (decrease)/increase in cash, cash equivalents and restricted cash

(1,069,140)

1,395,402

202,291

Cash, cash equivalents and restricted cash at beginning of period

13,530,947

10,046,717

1,456,468

Cash, cash equivalents and restricted cash at end of period

12,461,807

11,442,119

1,658,759

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:

As of

December 31,

March 31,

2025

2026

RMB

RMB

US$

(in thousands)

Cash and cash equivalents

10,011,533

11,406,935

1,653,658

Restricted cash, current

29,129

29,129

4,223

Restricted cash, non-current

6,055

6,055

878

Total cash, cash equivalents and restricted cash

10,046,717

11,442,119

1,658,759

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended March 31,

2025

2026

RMB

RMB

US$

(in thousands, except for share and per share data)

Net income

2,039,181

2,156,356

312,605

Add:

Share-based compensation expense (1)

220,269

221,119

32,056

Gain on disposal of equity investees and subsidiary, net of income taxes

(121)

(395)

(57)

Adjusted net income

2,259,329

2,377,080

344,604

Net income

2,039,181

2,156,356

312,605

Add:

Depreciation

789,108

912,649

132,306

Amortization

37,819

49,211

7,134

Interest expenses

68,876

50,272

7,288

Income tax expenses

531,574

552,180

80,049

EBITDA

3,466,558

3,720,668

539,382

Add:

Share-based compensation expense

220,269

221,119

32,056

Gain on disposal of equity investees and subsidiary

(147)

(478)

(69)

Adjusted EBITDA

3,686,680

3,941,309

571,369

(1) Net of income taxes of nil

Reconciliations of GAAP and Non-GAAP Results

Three Months Ended  March  31,

2025

2026

RMB

RMB

US$

(in thousands, except for share and per share data)

Net income attributable to ordinary shareholders

1,993,247

2,118,333

307,093

Add:

Share-based compensation expense (1)

220,269

221,119

32,056

Loss/(gain) on disposal of equity investees

and subsidiary, net of income taxes

(121)

(395)

(57)

Adjusted Net income attributable to ordinary shareholders

2,213,395

2,339,057

339,092

Weighted average shares used in calculating net earnings per ordinary share/ADS

Basic

798,486,427

776,158,342

776,158,342

Diluted

832,052,527

798,341,566

798,341,566

Net earnings per share/ADS attributable to

ordinary shareholders

Basic

2.50

2.73

0.40

Diluted

2.44

2.68

0.39

Adjusted net earnings per share/ADS

attributable to ordinary shareholders

Basic

2.77

3.01

0.44

Diluted

2.71

2.95

0.43

(1) Net of income taxes of nil

For investor and media inquiries, please contact:
ZTO Express (Cayman) Inc.
Investor Relations
E-mail: [email protected]
Phone: +86 21 5980 4508

SOURCE ZTO Express (Cayman) Inc.

ZTO's first-quarter 2026 revenues benefit from growth in parcel volume.

ZTO Express: Anticipated Margin Expansion Should Drive Re-Rating

A downtrend has been apparent in ZTO Express (Cayman) Inc. (ZTO - Free Report) lately with too much selling pressure. The stock has declined 11.6% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Why a Trend Reversal is Due for ZTOThe RSI reading of 28.7 for ZTO is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering ZTO in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 3.7% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, ZTO currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .