Zto Express Cayman Inc

ZTO Express reported second-quarter 2026 earnings of 56 cents per share, up from the year-ago quarter, with total revenues of $2.14 billion also improving year over year. The company handled 10.5 billion parcels, a 6.5% increase that outpaced the industry average by 2.3 percentage points, and adjusted net income reached RMB 3.1 billion. Core express delivery revenues rose 23% on a 6.5% parcel volume increase and a 15.5% rise in parcel unit price, while gross margin improved to 25.7% from 24.9%. ZTO also updated its 2026 parcel volume guidance to a range of 40.8 billion to 42.4 billion, down from the prior 42.37 billion to 43.52 billion, and repurchased 6,161,216 ADSs for $138 million under its new $1.5 billion buyback program.

ZTO Express reported second-quarter 2026 unaudited financial results, with non-GAAP earnings per American depositary share of $0.59 beating analyst estimates by $0.08. Revenue came in at $2.14 billion, missing expectations by $20 million. The results were released via a company press release.

ZTO Express has seen upward revisions to its full-year 2026 earnings estimates over the past 90 days, signaling broker confidence. The company's core express delivery revenue rose 22.5% year over year in the first quarter of 2026, driven by a 13.2% increase in parcel volume and an 8.2% rise in parcel unit price. ZTO Express projects 2026 parcel volume between 42.37 billion and 43.52 billion, reflecting 10% to 13% growth. The board also approved a new $1.5 billion share repurchase program in March 2026, effective through March 2028. With a forward price-to-earnings ratio of 10.31, below the industry's 16.40 and its own five-year median of 13.47, the stock appears attractively valued, earning a Zacks Rank #2 (Buy).

Zacks Equity Research identifies Expeditors International of Washington, C.H. Robinson Worldwide, and ZTO Express (Cayman) as transportation-service stocks worth monitoring despite a challenging industry environment. The Zacks Transportation-Services industry faces persistent freight downturns, with the Cass Freight Shipments Index declining 1.2% year over year in May, marking nine consecutive months of deterioration. Economic uncertainty remains elevated as the Federal Reserve held rates at 3.50-3.75% and trimmed its 2026 GDP growth forecast to 2.2% from 2.4%, while the Russia-Ukraine conflict intensifies. The industry carries a Zacks Industry Rank of 161, placing it in the bottom 35% of 247 Zacks industries, and its aggregate 2026 earnings estimate has decreased 10% year over year. Expeditors sports a Zacks Rank #1 (Strong Buy) and has beaten earnings estimates in each of the past four quarters with an average surprise of 14%. ZTO Express holds a Zacks Rank #2 (Buy) with a long-term earnings growth expectation of 13.5% and 2026 parcel volume guidance of 42.37 to 43.52 billion, reflecting 10-13% year-over-year growth. C.H. Robinson carries a Zacks Rank #3 (Hold) and is leveraging AI integration to boost margins and strengthen its competitive edge.