ZTO Express Inc. (NYSE: ZTO) saw its shares tumble 5.78% in after-hours trading on Tuesday following the release of its second-quarter 2025 financial results. The Chinese express delivery giant reported a decline in earnings and lowered its full-year guidance, disappointing investors despite revenue growth.

For the second quarter, ZTO Express reported adjusted earnings per American depositary share (ADS) of RMB2.48 (US$0.35), down 26.6% from RMB3.38 in the same period last year. This fell short of market expectations. While revenues increased by 10.3% year-over-year to RMB11.83 billion (US$1.65 billion), the company's net income decreased by 24.8% to RMB1.96 billion (US$274.2 million).

Adding to investor concerns, ZTO Express revised down its annual parcel volume guidance for 2025. The company now expects parcel volumes to be in the range of 38.8 billion to 40.1 billion, compared to its previous forecast of 40.8 billion to 42.2 billion. This adjustment reflects the challenging market conditions and intensifying competition in China's express delivery sector. Despite the setback, ZTO Express remains committed to outpacing the industry's average growth rate for the year, as stated by CFO Huiping Yan.