ZTO Express reported a 50.3% year-over-year increase in adjusted net income to CNY 3.09 billion for the second quarter of 2026, driven by a 23% rise in revenue to CNY 14.55 billion and margin expansion across key metrics.
The company’s non-GAAP operating income climbed 30.4% to CNY 3.23 billion, lifting its operating margin by 1.3 percentage points to 22.2%. Adjusted EBITDA reached CNY 4.24 billion with a 29.2% margin, while gross margin improved to 25.7% from 24.9% in the prior-year period. Earnings per parcel rose to CNY 0.29 on a non-GAAP basis, up from CNY 0.21 a year earlier.
ZTO’s parcel volume grew 6.5% year-over-year to 10.49 billion, outpacing the broader industry’s 4.2% expansion. Daily average volume reached 115 million parcels, supported by a network of 92 sorting hubs and 782 automated sorting lines. The company maintained a 19.9% market share as China’s largest express delivery operator, though this reflects a decline from a 22.9% peak in 2023 due to reporting methodology adjustments.
Revenue per parcel increased to CNY 1.37 from CNY 1.24, while combined unit sorting and transportation costs fell 3.2% to CNY 0.02 per parcel. Transportation costs per parcel declined to CNY 0.26, down from CNY 0.34 in 2019, and sorting costs dropped to CNY 0.36 from CNY 0.62 over the same period. A CNY 344.3 million tax refund further bolstered quarterly results.
Chairman and CEO Meisong Lai emphasized a shift in the industry toward value creation and network stability, stating that scale is now a secondary outcome to operational quality. CFO Huiping Yan highlighted cost efficiencies despite rising oil prices, attributing savings to digitization and lean operations.
Shares of ZTO fell 3.72% in after-hours trading to $22.27 following the results, despite the company beating revenue and earnings estimates. The stock had closed 0.96% higher at $23.13 in regular trading. The company’s market capitalization stands at $17.55 billion, with a price-to-earnings ratio of 13.69 and a dividend yield of 3.29%.
ZTO reaffirmed its full-year 2026 guidance, projecting parcel volume growth of 6% to 10% and a CNY 0.03 reduction in core transit costs per parcel for the year.
