ZTO Express (Cayman) (ZTO) Q1 2026 earnings summary

Executive summary

• Achieved 20.3% market share in China's express delivery industry in Q1 2026, handling 9.7 billion parcels, with parcel volume up 13.2% year-over-year and maintaining #1 ranking by parcel volume since 2016.

• Revenue increased 22% year-over-year to CNY 13.3 billion, with core express delivery revenue up 22.5% and key account revenue up 92.2%.

• Adjusted net income rose 5.2% year-over-year to CNY 2.38 billion, and adjusted EBITDA increased 6.9% to CNY 3.94 billion.

• Retail parcel volume surged 65% year-over-year, and product mix optimization improved profitability and resilience.

• Maintained high customer satisfaction and service quality, with a 97% satisfaction rate and top ranking in on-time delivery.

Financial highlights

• Gross profit increased 20.3% to CNY 3.2 billion; gross margin was 24.4%.

• Adjusted net income margin was 17.9% and adjusted EBITDA margin was 29.7% in Q1 2026.

• Operating cash flow was CNY 2.8 billion, up 18%; cash and cash equivalents at quarter-end were CNY 11.4 billion.

• Capital expenditure for the quarter was CNY 1.8 billion; annual CapEx expected at CNY 6 billion.

• Net income rose 5.7% to CNY 2.16 billion; basic and diluted EPS increased 9.2% and 9.8% respectively.

Outlook and guidance

• Maintains full-year parcel volume growth guidance of 10–13% year-over-year, targeting 42.37–43.52 billion parcels.

• Focus remains on high-quality growth, cost reduction, shareholder returns, and expanding last-mile presence.

• Continued investment in automation, digitalization, and green initiatives to drive efficiency and sustainability.