VNET Group (NASDAQ:VNET) Issues Earnings Results, Misses Expectations By $1.17 EPS

VNET Group (NASDAQ:VNET) released its earnings results on Tuesday. The information technology services provider reported ($1.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($1.17), Zacks reports. The company had revenue of $390.32 million for the quarter, compared to analyst estimates of $388.47 million. VNET Group had a negative return on equity of 29.62% and a negative net margin of 22.01%.

Here are the key takeaways from VNET Group’s conference call:

• VNET delivered a strong first quarter, with revenue up 19.8% year over year to RMB 2.69 billion and adjusted EBITDA up 30.6% to RMB 891.5 million, driven mainly by wholesale IDC growth.
• Wholesale momentum was very strong: capacity in service rose to 907 MW, utilization increased to 75.7%, and the company said it won 517 MW of wholesale orders year-to-date from AI-driven demand.
• Management said the wholesale business surpassed retail revenue for the first time, reflecting the shift toward larger AI and hyperscale customers. Retail IDC remained stable, with cabinet utilization at 64.1% and MRR per cabinet edging higher.
• The company maintained its 2026 guidance, expecting total net revenues of RMB 11.5 billion-RMB 11.8 billion and adjusted EBITDA of RMB 3.55 billion-RMB 3.75 billion. Management also reiterated full-year CapEx of RMB 10 billion-RMB 12 billion.
• VNET highlighted improving liquidity and capital recycling, ending the quarter with RMB 8.8 billion in cash and investments and noting successful REIT listings that should support future growth. Management also pointed to strategic upside from CATL’s expected investment and potential synergies in energy storage, supply chain, and overseas expansion.

VNET Group Price Performance

VNET opened at $10.63 on Thursday. VNET Group has a fifty-two week low of $5.14 and a fifty-two week high of $14.48. The firm has a 50-day moving average of $9.06 and a 200 day moving average of $9.72. The firm has a market cap of $2.88 billion, a P/E ratio of -7.76 and a beta of 0.19. The company has a debt-to-equity ratio of 2.68, a quick ratio of 0.92 and a current ratio of 0.92.

Insiders Place Their Bets

In other VNET Group news, Director David Lifeng Chen sold 83,544 shares of the firm’s stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $1.51, for a total value of $126,151.44. Following the completion of the sale, the director directly owned 334,164 shares of the company’s stock, valued at $504,587.64. This trade represents a 20.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Company insiders own 12.10% of the company’s stock.

Hedge Funds Weigh In On VNET Group

Several large investors have recently modified their holdings of VNET. Hsbc Holdings PLC grew its stake in VNET Group by 46.0% in the 4th quarter. Hsbc Holdings PLC now owns 1,293,571 shares of the information technology services provider’s stock valued at $10,944,000 after buying an additional 407,517 shares in the last quarter. Virtu Financial LLC purchased a new stake in VNET Group in the fourth quarter valued at approximately $157,000. Trexquant Investment LP bought a new stake in shares of VNET Group during the 4th quarter worth $1,964,000. BTG Pactual Asset Management US LLC purchased a new position in shares of VNET Group in the 4th quarter worth about $254,000. Finally, Farallon Capital Management LLC boosted its stake in VNET Group by 14.5% in the fourth quarter. Farallon Capital Management LLC now owns 6,285,386 shares of the information technology services provider’s stock worth $53,174,000 after buying an additional 796,266 shares in the last quarter. Hedge funds and other institutional investors own 72.83% of the company’s stock.

Analyst Ratings Changes

VNET has been the topic of a number of research analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of VNET Group in a report on Friday, March 27th. Wall Street Zen upgraded shares of VNET Group from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Zacks Research cut shares of VNET Group from a “hold” rating to a “strong sell” rating in a research report on Monday, May 18th. Jefferies Financial Group reissued a “buy” rating and set a $24.79 target price on shares of VNET Group in a research note on Tuesday. Finally, Bank of America set a $16.30 price target on VNET Group and gave the stock a “buy” rating in a report on Tuesday. Three investment analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, VNET Group presently has a consensus rating of “Hold” and a consensus target price of $19.03.

VNET Group Company Profile

VNET Group, Inc (NASDAQ: VNET) is a leading carrier-neutral internet data center (IDC) services provider in China. Established in 1999 and headquartered in Beijing, the company delivers a full spectrum of infrastructure solutions that support the growing digital economy. Its core offerings include data center colocation, managed hosting, network connectivity, and disaster recovery services designed to meet the performance and reliability requirements of enterprise and internet content customers.

The company’s product portfolio spans private cloud, public cloud and hybrid cloud deployments, enabling clients to scale computing resources on demand.