VNET Group (NASDAQ:VNET) Issues Quarterly Earnings Results

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

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 Trading Up 8.0%

NASDAQ:VNET opened at $10.71 on Thursday. The firm has a fifty day simple moving average of $9.06 and a two-hundred day simple moving average of $9.72. VNET Group has a 12 month low of $5.14 and a 12 month high of $14.48. The stock has a market capitalization of $2.90 billion, a price-to-earnings ratio of -7.82 and a beta of 0.19. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 2.68.

Analysts Set New Price Targets

VNET has been the subject of a number of recent research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of VNET Group in a report on Friday, March 27th. Jefferies Financial Group reiterated a “buy” rating and set a $24.79 price target on shares of VNET Group in a report on Tuesday. Morgan Stanley reissued an “overweight” rating and issued a $16.00 price objective on shares of VNET Group in a research note on Wednesday. Zacks Research lowered VNET Group from a “hold” rating to a “strong sell” rating in a research report on Monday, May 18th. Finally, Bank of America set a $16.30 target price 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 data from MarketBeat, VNET Group currently has an average rating of “Hold” and a consensus price target of $19.03.

Insider Buying and Selling

In related news, Director David Lifeng Chen sold 83,544 shares of the 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 transaction, the director directly owned 334,164 shares in the company, valued at $504,587.64. This trade represents a 20.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 12.10% of the company’s stock.

Hedge Funds Weigh In On VNET Group

Large investors have recently added to or reduced their stakes in the business. Geode Capital Management LLC grew its holdings in VNET Group by 3.2% during the second quarter. Geode Capital Management LLC now owns 241,964 shares of the information technology services provider’s stock worth $1,670,000 after buying an additional 7,489 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in VNET Group by 1,201.2% during the 2nd quarter. JPMorgan Chase & Co. now owns 511,417 shares of the information technology services provider’s stock worth $3,529,000 after acquiring an additional 472,115 shares during the last quarter. Quantbot Technologies LP boosted its holdings in VNET Group by 333.0% during the 2nd quarter. Quantbot Technologies LP now owns 18,805 shares of the information technology services provider’s stock worth $130,000 after acquiring an additional 14,462 shares during the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of VNET Group by 52.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider’s stock worth $29,000 after acquiring an additional 1,426 shares in the last quarter. Finally, Qube Research & Technologies Ltd purchased a new stake in shares of VNET Group in the second quarter valued at about $3,568,000. Institutional investors own 72.83% of the company’s stock.

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.