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ZTO Reports First Quarter 2026 Unaudited Financial Results

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ZTO (NYSE:ZTO) reported unaudited Q1 2026 results with strong top-line and parcel growth but softer margins. Revenue rose 22.0% to RMB13.28 billion and parcel volume grew 13.2%, 7.4 points above industry average. Net income increased 5.7% to RMB2.16 billion and adjusted net income reached RMB2.38 billion. Operating cash flow was RMB2.79 billion. Gross margin was 24.4% and operating margin 19.2%, both slightly below last year. ZTO announced a new US$1.5 billion share repurchase program through March 2028 and reaffirmed 2026 parcel growth guidance of 10–13%. A non-executive director resigned following termination of an investor rights agreement.

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AI-generated analysis. Not financial advice.

Positive

  • Total revenue increased 22.0% year over year to RMB13,282.4 million
  • Parcel volume grew 13.2% to 9.668 billion, 7.4 points above industry average
  • Net income rose 5.7% to RMB2,156.4 million
  • Adjusted net income increased 5.2% to RMB2,377.1 million
  • Net cash from operating activities grew to RMB2,789.0 million from RMB2,363.0 million
  • Core express ASP increased 8.2%, improving revenue mix toward key accounts
  • Board authorized up to US$1.5 billion share repurchases over 24 months
  • Management reaffirmed 2026 parcel volume growth guidance of 10–13% year over year

Negative

  • Gross margin declined to 24.4% from 24.7% year over year
  • Operating margin decreased to 19.2% from 22.1% year over year
  • Other costs rose 80.2% to RMB3,780.9 million, driven by partner payments
  • Revenue from freight forwarding services decreased 13.0% year over year
  • Other operating income fell to RMB125.7 million from RMB453.7 million
  • Selling, general and administrative expenses increased 10.6% to RMB815.7 million

Key Figures

Q1 2026 revenue: RMB13,282.4 million (US$1,925.5 million) Q1 2026 net income: RMB2,156.4 million (US$312.6 million) Q1 2026 adjusted net income: RMB2,377.1 million (US$344.6 million) +5 more
8 metrics
Q1 2026 revenue RMB13,282.4 million (US$1,925.5 million) Three months ended March 31, 2026
Q1 2026 net income RMB2,156.4 million (US$312.6 million) Three months ended March 31, 2026
Q1 2026 adjusted net income RMB2,377.1 million (US$344.6 million) Three months ended March 31, 2026
Q1 2026 adjusted EBITDA RMB3,941.3 million (US$571.4 million) Three months ended March 31, 2026
Share repurchase authorization up to US$1.5 billion New program approved March 2026 over 24 months
Q1 2026 parcel volume 9,668 million parcels Three months ended March 31, 2026 (13.2% YoY increase)
Operating cash flow RMB2,789.0 million (US$404.3 million) Net cash provided by operating activities, Q1 2026
2026 volume guidance 42.37 billion to 43.52 billion parcels Management guidance: 10%–13% YoY parcel volume growth

Market Reality Check

Price: $23.55 Vol: Volume 1,886,958 is just ...
normal vol
$23.55 Last Close
Volume Volume 1,886,958 is just above the 20-day average of 1,775,726 (relative volume 1.06) ahead of the earnings release. normal
Technical Shares at $23.55 trade above the 200-day MA of $21.68, sitting 10.11% below the 52-week high of $26.2 and 41.19% above the 52-week low of $16.68.

Peers on Argus

Ahead of ZTO’s results, ZTO was down 1.21% while key logistics peers like UPS (+...

Ahead of ZTO’s results, ZTO was down 1.21% while key logistics peers like UPS (+1.74%), FDX (+1.68%), CHRW (+2.16%) and EXPD (+0.97%) traded higher, with JBHT slightly lower (-0.92%). This points to stock-specific factors rather than a broad sector move.

Previous Earnings Reports

4 past events · Latest: Mar 17 (Positive)
Same Type Pattern 4 events
Date Event Sentiment Move Catalyst
Mar 17 Q4 & FY 2025 earnings Positive +7.5% Full-year revenue and parcel growth with large buyback and dividend.
Feb 4 Preliminary 2025 results Neutral +1.2% Preliminary 2025 revenue and gross profit ranges with volume growth detail.
Nov 19 Q3 2025 earnings Negative -0.1% Q3 2025 revenue growth but margin pressure and lowered volume guidance.
Apr 17 2024 annual report filing Neutral +0.3% Form 20-F filing providing audited 2024 financials and disclosures.
Pattern Detected

Earnings and earnings-related updates have typically seen modestly positive to strong positive one-day reactions, with no clear pattern of selling on good news in the recent record.

Recent Company History

Over the past year, ZTO’s earnings and financial updates have highlighted consistent parcel-volume growth and expanding revenues, alongside rising cost pressures. The Q4 and full-year 2025 release on Mar 17, 2026 showed higher revenue and adjusted net income plus a sizable capital return plan, drawing a 7.5% gain. Earlier preliminary 2025 estimates on Feb 4, 2026 and the Q3 2025 update in Nov 2025 also paired solid volume growth with margin compression, yet price reactions stayed near flat to modestly positive.

Historical Comparison

+2.2% avg move · Recent earnings and earnings-like releases for ZTO saw average one-day moves of about 2.23%, with re...
earnings
+2.2%
Average Historical Move earnings

Recent earnings and earnings-like releases for ZTO saw average one-day moves of about 2.23%, with reactions skewed modestly positive on growth and capital return updates.

Earnings communications have shown steady parcel and revenue growth while highlighting margin pressure, followed by a reinforced capital return framework and updated volume guidance.

Market Pulse Summary

This announcement highlights robust Q1 2026 expansion, with revenues up 22.0%, parcel volume rising ...
Analysis

This announcement highlights robust Q1 2026 expansion, with revenues up 22.0%, parcel volume rising 13.2%, and adjusted net income reaching RMB2.4 billion. Management reiterated 2026 parcel growth guidance of 10%–13% and approved a new US$1.5 billion share repurchase program. At the same time, higher other costs and a lower operating margin underscore ongoing efficiency and pricing execution as key metrics to monitor in future quarters.

Key Terms

adjusted net income, adjusted EBITDA, EBITDA, ADS, +4 more
8 terms
adjusted net income financial
"Adjusted net income increased 5.2% to RMB2.4 billion."
Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.
adjusted EBITDA financial
"Adjusted EBITDA[3] was RMB3,941.3 million (US$571.4 million)..."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
EBITDA financial
"EBITDA[1] was RMB3,720.7 million (US$539.4 million)..."
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
ADS financial
"Basic and diluted net earnings per American depositary share ("ADS"[4]) were RMB2.73..."
Ads are paid promotional messages a company places across media — online, on TV, in print, or on social platforms — to attract customers, explain products, or shape public perception. For investors, ads matter because they drive sales growth, affect how much a company must spend to win customers, and influence brand strength and long-term value. Ads can also create regulatory or reputational risk if claims are misleading, which can affect profits and stock price.
non-GAAP financial measure financial
"Adjusted net income is a non-GAAP financial measure, which is defined as..."
A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.
line-haul transportation cost technical
"Line-haul transportation cost was RMB3,530.2 million (US$511.8 million)..."
Line-haul transportation cost is the expense of moving goods over the main leg of a shipment—think the highway portion between origin and destination hubs—excluding local pickup, delivery or handling fees. Investors care because it is a major, predictable part of shipping expense that directly affects a company’s profit margins and pricing power; rising line-haul costs can squeeze earnings or force higher prices for customers, like higher fuel or tolls cutting into a road-trip budget.
reverse logistics technical
"key accounts, which included fast-growing reverse logistics volume..."
Reverse logistics is the process of moving products from customers back to a company for returns, repairs, recycling, or disposal — like the reverse of a delivery route when a returned package comes back to the warehouse. It matters to investors because efficient reverse logistics can cut costs, recover value from returned goods, reduce waste and regulatory risk, and protect brand reputation, all of which affect profitability and long-term cash flow.
operating margin rate financial
"The operating margin rate was 19.2% compared to 22.1% in the same period last year."
Operating margin rate is the percentage of a company’s sales that remains after paying the ordinary, day-to-day costs of running the business (wages, rent, materials and other operating expenses) but before interest and taxes. Investors use it to see how efficiently a business turns revenue into profit from its core activities—like checking how much of every dollar of sales is left after paying the bills—so higher margins typically signal stronger operational health and more resilience to slowdowns.

AI-generated analysis. Not financial advice.

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

SHANGHAI, May 19, 2026 /PRNewswire/ -- ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading and fast-growing express delivery company in China ("ZTO" or the "Company"), today announced its unaudited financial results for the 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: ir@zto.com
Phone: +86 21 5980 4508

Cision View original content:https://www.prnewswire.com/news-releases/zto-reports-first-quarter-2026-unaudited-financial-results-302776370.html

SOURCE ZTO Express (Cayman) Inc.

FAQ

How did ZTO (NYSE:ZTO) perform in its Q1 2026 financial results?

ZTO reported revenue of RMB13.28 billion and net income of RMB2.16 billion for Q1 2026. According to ZTO, revenue grew 22.0% year over year, while adjusted net income reached RMB2.38 billion, supported by 13.2% parcel volume growth and strong operating cash flow.

What were ZTO (ZTO) parcel volume and growth relative to the industry in Q1 2026?

ZTO handled 9.668 billion parcels in Q1 2026, a 13.2% year-over-year increase. According to ZTO, this growth was 7.4 percentage points above the industry average, reflecting strong key account and retail volume contributions across its nationwide express delivery network.

How did ZTO margins change in Q1 2026 compared with Q1 2025?

ZTO’s gross margin was 24.4% and operating margin 19.2% in Q1 2026. According to ZTO, both margins were slightly lower than a year earlier, as higher other costs and lower other operating income offset revenue growth and unit cost efficiency gains.

What does the US$1.5 billion ZTO share repurchase program mean for shareholders?

ZTO’s board approved a new share repurchase program of up to US$1.5 billion over 24 months. According to ZTO, repurchases, funded from existing cash, may reduce share count over time and can enhance per-ADS metrics, depending on execution and market conditions.

What is ZTO’s 2026 parcel volume growth guidance after the Q1 2026 earnings release?

ZTO reaffirmed 2026 parcel volume growth guidance of 10–13% year over year. According to ZTO, this implies full-year parcel volume between 42.37 billion and 43.52 billion, based on current market and operating conditions, and reflects its ongoing quality-first growth strategy.

How did ZTO’s cost structure and other operating income evolve in Q1 2026?

Total cost of revenues rose 22.5% to RMB10.05 billion in Q1 2026. According to ZTO, other costs increased 80.2%, mainly from higher pickup and dispatch payments, while other operating income decreased to RMB125.7 million, including government subsidies, tax rebates and rental income.

What board and governance changes did ZTO announce alongside Q1 2026 results?

ZTO announced the resignation of non-executive director Di Xu effective May 20, 2026. According to ZTO, this followed termination of an investor rights agreement with Alibaba-related entities; Ms. Xu reported no disagreement with the board or issues requiring shareholder attention.