ZTO Express Achieves Impressive Growth in First Quarter of 2026

ZTO Express (Cayman) Inc. has reported its unaudited financial results for the first quarter of 2026, showcasing substantial growth and resilience in its operations. The company, recognized as a leading express delivery service in China, revealed that its parcel volume surged by 13.2% year-over-year to reach a remarkable 9.7 billion parcels. This figure notably outpaced the industry average by 7.4 percentage points, signifying ZTO's strength in the competitive logistics market.

The financial report highlighted several key metrics that underscore the company's successful strategies and operational efficiencies:

1. Revenue Growth: ZTO’s total revenue reached RMB 13,282.4 million (approximately USD 1,925.5 million), marking a significant increase of 22% compared to RMB 10,891.5 million in the same period of 2025.

2. Net Income Results: The company's net income stood at RMB 2,156.4 million (USD 312.6 million), a rise of 5.7% from the previous year's RMB 2,039.2 million. The adjusted net income also showed an encouraging increase of 5.2%, totaling RMB 2.4 billion (USD 344.6 million).

3. Profit Margins: ZTO's gross profit for the quarter increased by 20.3%, amounting to RMB 3,235.2 million (USD 469.0 million), largely driven by effective cost management and economies of scale.

4. Operational Efficiency: The company reported net cash generated from operating activities at RMB 2.8 billion, indicating strong cash flow abilities that support continuous investment and growth initiatives.

Mr. Meisong Lai, the founder and CEO of ZTO, commented on the extraordinary parcel volume growth and quality of service. He pointed out that the increase was primarily driven by their focus on key accounts and quality service, which collectively fueled higher retail volumes compared to traditional e-commerce shipping volumes.

In addition to operational successes, ZTO has strategically expanded its network, with over 31,000 pickup and delivery locations and approximately 10,000 line-haul vehicles as of the end of March 2026. This extensive network is critical in navigating the growing demands of China's e-commerce market.

Moreover, ZTO’s Chief Financial Officer, Ms. Huiping Yan, emphasized that the average selling price (ASP) for express deliveries increased by 8.2%, as the company continues to enhance its service offerings, particularly focusing on reverse logistics—a sector that has seen considerable growth as e-commerce evolves.

ZTO's operating expenses have also been streamlined, with the selling, general, and administrative costs as a percentage of revenue improving to 4.5% from 4.7% in the previous year. This efficiency, alongside increased productivity through smarter route and cost management, positions ZTO favorably for sustaining its growth trajectory.

Furthermore, the company has initiated a share repurchase program authorize $1.5 billion worth of shares, aiming to optimize its capital structure and enhance shareholder value over the next two years. ZTO continues to forecast a 10% to 13% growth in parcel volume for 2026, underlining its confidence in navigating market fluctuations and fulfilling expanding user needs.

In conclusion, the robust financial metrics and strategic initiatives underscore ZTO Express's commitment to quality service and sustainable growth within the dynamic logistics environment, poised for further expansion in the months ahead. The company’s emphasis on operational excellence and customer satisfaction is expected to continue driving it forward in the rapidly evolving e-commerce landscape.

For further information and updates, visit ZTO's Investor Relations Page.