VNET Group (NASDAQ:VNET) Announces Earnings Results

VNET Group (NASDAQ:VNET) released its quarterly earnings data on Tuesday. The information technology services provider reported ($1.20) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($1.17), Zacks reports. The firm 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 Stock Performance

VNET stock opened at $10.71 on Thursday. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 2.68. The firm has a market cap of $2.90 billion, a P/E ratio of -7.82 and a beta of 0.19. VNET Group has a 12-month low of $5.14 and a 12-month high of $14.48. The stock’s 50 day simple moving average is $9.06 and its 200 day simple moving average is $9.72.

Insider Activity

In other news, Director David Lifeng Chen sold 83,544 shares of the firm’s stock in a transaction dated Monday, March 23rd. The shares were 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 approximately $504,587.64. This trade represents a 20.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 12.10% of the company’s stock.

Institutional Investors Weigh In On VNET Group

Large investors have recently added to or reduced their stakes in the stock. Brooklyn Investment Group lifted its holdings in VNET Group by 97.0% in the 4th quarter. Brooklyn Investment Group now owns 23,471 shares of the information technology services provider’s stock worth $203,000 after purchasing an additional 11,557 shares during the last quarter. Orion Porfolio Solutions LLC lifted its holdings in VNET Group by 6.1% in the 3rd quarter. Orion Porfolio Solutions LLC now owns 21,491 shares of the information technology services provider’s stock worth $222,000 after purchasing an additional 1,237 shares during the last quarter. Sender Co & Partners Inc. acquired a new stake in VNET Group in the 2nd quarter worth approximately $209,000. Quantbot Technologies LP increased its position in VNET Group by 333.0% in the 2nd quarter. Quantbot Technologies LP now owns 18,805 shares of the information technology services provider’s stock worth $130,000 after buying an additional 14,462 shares during the period. Finally, Allianz SE bought a new position in VNET Group in the 4th quarter worth approximately $50,000. 72.83% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on VNET shares. Zacks Research lowered VNET Group from a “hold” rating to a “strong sell” rating in a research report on Monday, May 18th. Bank of America set a $16.30 price target on VNET Group and gave the stock a “buy” rating in a research report on Tuesday. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of VNET Group in a report on Friday, March 27th. Morgan Stanley reaffirmed an “overweight” rating and set a $16.00 price target on shares of VNET Group in a report on Wednesday. Finally, Wall Street Zen raised shares of VNET Group from a “sell” rating to a “hold” rating in a report on Saturday, May 9th. Three research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $19.03.

About VNET Group

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.