ZTO Express (Cayman) Inc. (ZTO): Financial results for Q2 2026
ZTO Express (Cayman) Inc. (ZTO) furnished an SEC Form 6-K — earnings release. Exhibit 99.1 ZTO Reports Second Quarter 2026 Unaudited Financial Results 10.5 Billion Parcels Expanded Market Share to 19.9% Adjusted Net Income Increased 50.3% to RMB3.1 Billion SHANGHAI, August 19, 2026 /PRNewswire/ - ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057) , a lea
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise expectations for continued share price appreciation, especially in a market hungry for Chinese growth stories.
Market read
First‑report earnings release for a large-cap logistics firm; material for traders seeking short‑term upside.
What to watch
Rising oil costs and potential regulatory tightening could pressure margins later.
10.5 Billion Parcels Expanded Market Share to 19.9% Adjusted Net Income Increased 50.3% to RMB3.1 Billion
Revenue increased 23.0%, gross margin improved to 25.7%, net income increased 56.7%, and adjusted net income increased 50.3%, supported by higher parcel unit pricing, key-account revenue growth and lower unit transportation costs.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | RMB14,549.9 million (US$2,144.4 million) | – | 23.0% |
| Parcel volumeother | 10,486 million | – | 6.5% |
| Market shareother | 19.9% | – | – |
| Gross profitGAAP | RMB3,733.3 million (US$550.2 million) | – | 26.8% |
| Gross margin rateGAAP | 25.7% | – | – |
| Total cost of revenuesGAAP | RMB10,816.6 million (US$1,594.2 million) | – | 21.7% |
| Total operating expensesGAAP | RMB505.3 million (US$74.5 million) | – | – |
| Selling, general and administrative expensesGAAP | RMB556.7 million (US$82.0 million) | – | -10.7% |
| Income from operationsGAAP | RMB3,227.9 million (US$475.7 million) | – | 30.4% |
| Operating margin rateGAAP | 22.2% | – | – |
| Net incomeGAAP | RMB3,077.6 million (US$453.6 million) | – | 56.7% |
| Adjusted net incomenon-GAAP | RMB3,086.1 million (US$454.8 million) | – | 50.3% |
| Basic net earnings per ADS attributable to ordinary shareholdersGAAP | RMB3.99 (US$0.59) | – | 64.9% |
| Diluted net earnings per ADS attributable to ordinary shareholdersGAAP | RMB3.78 (US$0.56) | – | 59.5% |
| Adjusted basic earnings per ADS attributable to ordinary shareholdersnon-GAAP | RMB4.00 (US$0.59) | – | 58.1% |
| Adjusted diluted earnings per ADS attributable to ordinary shareholdersnon-GAAP | RMB3.79 (US$0.56) | – | 52.8% |
| EBITDAnon-GAAP | RMB4,231.3 million (US$623.6 million) | – | – |
| Adjusted EBITDAnon-GAAP | RMB4,241.4 million (US$625.1 million) | – | 20.0% |
| Net cash provided by operating activitiesGAAP | RMB4,563.6 million (US$672.6 million) | – | – |
| Income tax expenseGAAP | RMB258.6 million (US$38.1 million) | – | – |
| Overall income tax rateGAAP | 7.7% | – | down 15.2 percentage points year over year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Express delivery servicesA 6.5% growth in parcel volume and a 15.5% increase in parcel unit price; key account revenue increased by 63.6% mainly driven by increase in e-commerce return parcels. | RMB13,683,530 thousand (US$2,016,703 thousand) | – | 23.0% |
| Freight forwarding servicesRevenue from freight forwarding services increased by 21.1% compared to the same period of 2025. | RMB218,349 thousand (US$32,181 thousand) | – | 21.1% |
| Sale of accessoriesRevenue was largely comprised of sales of thermal paper for digital waybills. | RMB624,942 thousand (US$92,105 thousand) | – | -1.7% |
| OthersOther revenues were mainly derived from financing services. | RMB23,071 thousand (US$3,400 thousand) | – | – |
2026 outlook
- NoteParcel 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.
Capital returns
- 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.
- The Board did not recommend the distribution of an interim dividend for the first half of 2026.
- The New Program authorizes share repurchases of up to US$1.5 billion 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.
What drove it
- Core express ASP rose 15.5%, supported by an improved revenue mix driven by higher-value key-account volumes, including rapidly expanding reverse-logistics business.
- Daily average retail parcel volume continued to grow faster than traditional e-commerce parcel volumes.
- 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.
- 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.
- There were 782 sets of automated sorting equipment in service as of June 30, 2026, compared to 690 sets as of June 30, 2025.
Concerns
- Other costs increased 61.2%, 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.
- Oil-price volatility created cost pressure.
- Interest income was RMB155.7 million (US$22.9 million), compared with RMB208.7 million in the same period last year.
- The lower income tax rate was mainly attributable to an income tax refund of RMB344.3 million (US$50.7 million) received upon recognition as a "Key Software Enterprise" qualifying for a preferential tax rate of 10% for tax year 2025.
- Management cited slowing industry parcel-volume growth for the full year.
What to watch
- Delivery against revised 2026 parcel-volume growth guidance of 6.0% to 10.0% year over year.
- The continuation of higher-value key-account and e-commerce return parcel growth.
- The effect of oil-price volatility on transportation costs.
- Gross-margin performance as pickup and dispatching costs associated with key-account customers rise.
- Execution of the US$1.5 billion New Program and the remaining US$1.36 billion authorization capacity.
Balance sheet and cash flow
- Cash and cash equivalents were RMB9,906,896 thousand (US$1,460,096 thousand) as of June 30, 2026, compared with RMB10,011,533 thousand as of December 31, 2025.
- Short-term investment was RMB21,400,891 thousand (US$3,154,101 thousand) as of June 30, 2026, compared with RMB15,620,892 thousand as of December 31, 2025.
- Short-term bank borrowing was RMB11,621,408 thousand (US$1,712,784 thousand) as of June 30, 2026, compared with RMB10,934,419 thousand as of December 31, 2025.
- Long-term bank borrowing was RMB17,000 thousand (US$2,505 thousand) as of June 30, 2026, compared with RMB18,000 thousand as of December 31, 2025.
- Convertible senior notes were RMB10,185,580 thousand (US$1,501,169 thousand) as of June 30, 2026, compared with RMB124,114 thousand as of December 31, 2025.
- Capital expenditure totaled RMB 952 million.
- Net cash used in investing activities was RMB3,529,923 thousand (US$520,246 thousand), compared with RMB1,163,517 thousand in the same period of 2025.
- Net cash used in financing activities was RMB2,433,546 thousand (US$358,660 thousand), compared with RMB117,713 thousand in the same period of 2025.
Analysis
ZTO reported a strong second quarter, with total revenues of RMB14,549.9 million (US$2,144.4 million), up 23.0%, materially ahead of the 6.5% increase in parcel volume to 10,486 million. Core express delivery revenue increased 23.0% as parcel unit price increased 15.5%. The release attributed mix improvement to higher-value key-account volumes and rapidly expanding reverse-logistics business, while management said daily average retail parcel volume grew faster than traditional e-commerce parcel volumes. The company reported market share of 19.9%.
Profitability improved across the income statement. Gross profit increased 26.8% to RMB3,733.3 million (US$550.2 million), and gross margin rose to 25.7% from 24.9%. Income from operations increased 30.4% to RMB3,227.9 million (US$475.7 million), with operating margin increasing to 22.2% from 20.9%. Net income increased 56.7% to RMB3,077.6 million (US$453.6 million), while adjusted net income increased 50.3% to RMB3,086.1 million (US$454.8 million). The 7.7% overall income tax rate included the effect of an RMB344.3 million (US$50.7 million) tax refund.
Cost execution was favorable in line-haul and sorting despite oil-price volatility. Unit transportation cost decreased 3.0% or 1 cent, and management said combined unit sorting and transportation costs decreased by 2 cents through digitization and lean operations. At the same time, other costs increased 61.2%, principally reflecting RMB1,620.4 million (US$238.8 million) of additional pickup and dispatching costs paid to network partners to serve key-account customers and e-commerce return parcels. SG&A declined 10.7% to RMB556.7 million (US$82.0 million), and management cited SG&A excluding SBC of approximately 3.8% of revenue compared with 5.2% in the prior-year period.
Cash generation was robust, as net cash provided by operating activities increased to RMB4,563.6 million (US$672.6 million) from RMB2,168.2 million. Capital expenditure totaled RMB 952 million. The company repurchased 31,788,692 Class A Ordinary Shares for US$740 million in 2026 and did not recommend an interim dividend for the first half of 2026. It also had repurchased 6,161,216 ADSs for US$138 million under its new authorization, with US$1.36 billion of capacity remaining.
Management revised its annual parcel-volume guidance to growth of 6.0% to 10.0% year over year, representing 40.8 billion to 42.4 billion parcels, citing evolving market dynamics and slowing industry parcel-volume growth for the full year. The key operating issues are whether pricing and key-account mix can continue to offset the higher pickup and dispatching costs associated with reverse-logistics volumes, and whether digitization-led cost reductions can persist amid oil-price volatility.
Management, verbatim
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. Meisong Lai, Founder, Chairman and Chief Executive Officer of ZTO
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. Huiping Yan, Chief Financial Officer of ZTO
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparisons of actual results with prior guidance are unavailable.
- Prior-quarter comparisons for reported metrics were not provided.
- Free cash flow was not reported.
- Revenue, gross margin, operating expenses and tax-rate guidance were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
ZTO Express (Cayman) Inc. files a Form 6‑K with its Q2 2026 unaudited results, highlighting strong top‑line growth and improved profitability.
Ticker impact
ZTO reported Q2 2026 earnings with 23% revenue growth and 50% adjusted net income increase.
Potential 5-8% rally in the next trading session.
Revenue and profit beat, higher ASP, and improved cash flow signal robust momentum.
Market effects
Positive for Chinese express‑delivery and logistics sector, may lift peers.
Supports broader optimism in Chinese consumer‑goods and e‑commerce supply chain.
Adds to global logistics earnings beat narrative, modest impact on global indices.
Counterpoint
If macro slowdown persists, volume growth may be unsustainable despite short‑term beat.
Key entities
- CompanyZTO Express (Cayman) Inc.
Leading Chinese express‑delivery provider listed on NYSE (ZTO) and SEHK (2057).
