Zto Express (Cayman), Inc. Sponsored Adr Class A (ZTO)
NYSE:ZTO
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Earnings Data
Report Date
May 27, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.45Last Year’s EPS
0.36Same Quarter Last Year
Strong Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a broadly positive operational and strategic picture: ZTO delivered above-industry parcel growth, strong revenue growth, robust operating cash flow, significant retail segment expansion, and measurable cost and productivity gains from automation and AI. Management also strengthened shareholder returns (dividend and $1.5B buyback) and provided upbeat 2026 guidance. However, the company faces margin pressure driven by higher total costs, rising KA unit costs and increased volume incentives, which led to declines in gross profit and operating profit for the year. On balance, the financial and strategic positives (volume outperformance, cash generation, technology-driven efficiency, and enhanced capital returns) outweigh the profitability headwinds, while management has explicit plans to address cost and network fairness issues.Company Guidance
Strong Volume Growth and Market Share Expansion
Q4 parcel volume reached 10.56 billion, up 9.2% year-over-year; full-year 2025 parcel volume was 38.5 billion, up 13.3% year-over-year. ZTO's market share expanded by 0.8 percentage points in Q4 while the industry reached a 200 billion parcel milestone with ~13.6% growth for the year.
Revenue Growth and Solid Adjusted Net Income
Total revenue grew 12.3% to RMB 14.5 billion in Q4 and increased 10.9% to RMB 49.1 billion for the full year. Adjusted net income was RMB 2.69 billion in Q4 and RMB 9.5 billion for 2025, reflecting continued scale and profitability.
Robust Operating Cash Flow and Enhanced Capital Return
Operating cash flow surged 50.6% in Q4 to RMB 4.2 billion and reached RMB 12.0 billion for the year (excl. prior-year one-time RMB 850 million franchise deposit refunds). CapEx for 2025 was RMB 6.1 billion. Board approved semi-annual dividend of USD 0.39 per ADS, a new $1.5 billion 24-month buyback program, and an enhanced shareholder return target of at least 50% of prior-year adjusted net income (dividends + buybacks).
Retail Segment Outperformance and Mix Improvement
Annual retail parcel volume grew 46% year-over-year and daily retail volume in Q4 approached 10 million parcels. Retail mix contributed to Q4 ASP positive movement and supported core revenue growth while alleviating pressure from volume-based subsidies.
Transit Unit-Cost Improvements
Combined unit cost for transportation and sorting decreased by 4.5% (RMB 0.04) in Q4 and 8.8% (RMB 0.06) for the full year, driven by economies of scale and productivity initiatives. Line-haul unit cost fell 7.5% in Q4 to RMB 0.37 and 12.2% for the year to RMB 0.36; sorting unit cost remained steady at RMB 0.26 in Q4 and decreased 3.7% for the year.
AI and Automation Delivering Operational Gains
Deployment of 3D digital twins and computer vision in 25 super sorting centers reduced missorting rates by ~50–60%. AI-powered customer service automates over 70% of end-to-end work orders; intelligent assistants cover >80% of routine outlet inquiries. AI-enabled dispatch and mapping reduced short-haul transport costs by >20% for large outlets and improved order allocation at scale.
Positive 2026 Volume Guidance
Company guided 2026 parcel volume growth of 10%–13% (implying 42.37–43.52 billion parcels), signaling management's confidence to grow faster than the industry (Postal Bureau estimate ~8%) despite a larger base and ongoing industry transition.
ZTO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ZTO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 18, 2026 | $25.12 | $24.88 | -0.94% |
Nov 20, 2025 | $18.66 | $18.93 | +1.43% |
Aug 20, 2025 | $18.95 | $18.51 | -2.30% |
May 20, 2025 | $16.98 | $16.52 | -2.69% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Zto Express (Cayman), Inc. Sponsored Adr Class A (ZTO) report earnings?
Zto Express (Cayman), Inc. Sponsored Adr Class A (ZTO) is schdueled to report earning on May 27, 2026, After Close (Confirmed).
What is Zto Express (Cayman), Inc. Sponsored Adr Class A (ZTO) earnings time?
Zto Express (Cayman), Inc. Sponsored Adr Class A (ZTO) earnings time is at May 27, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is ZTO EPS forecast?
ZTO EPS forecast for the fiscal quarter 2026 (Q1) is 0.45.