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

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 the consensus estimate 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%

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. VNET Group has a 12-month low of $5.14 and a 12-month high of $14.48. The stock has a market cap of $2.90 billion, a price-to-earnings ratio of -7.82 and a beta of 0.19. The business’s 50-day moving average is $9.06 and its 200 day moving average is $9.72.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on VNET shares. Morgan Stanley restated an “overweight” rating and set a $16.00 price objective on shares of VNET Group in a research note on Wednesday. Bank of America set a $16.30 price target on shares of VNET Group and gave the company a “buy” rating in a research report on Tuesday. Jefferies Financial Group reaffirmed a “buy” rating and issued a $24.79 price objective on shares of VNET Group in a research report on Tuesday. Wall Street Zen upgraded VNET Group from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Zacks Research lowered VNET Group from a “hold” rating to a “strong sell” rating in a research note on Monday, May 18th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $19.03.

Insider Transactions at VNET Group

In other VNET Group news, Director David Lifeng Chen sold 83,544 shares of VNET Group stock in a transaction on Monday, March 23rd. The shares were sold at an average price of $1.51, for a total transaction of $126,151.44. Following the sale, the director owned 334,164 shares of the company’s stock, valued at $504,587.64. The trade was a 20.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 12.10% of the company’s stock.

Institutional Investors Weigh In On VNET Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in VNET. Global Retirement Partners LLC acquired a new stake in VNET Group during the 4th quarter worth $27,000. EverSource Wealth Advisors LLC boosted its stake in VNET Group by 52.2% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider’s stock worth $29,000 after purchasing an additional 1,426 shares during the last quarter. Allianz SE acquired a new stake in VNET Group during the 4th quarter worth $50,000. Headlands Technologies LLC acquired a new stake in VNET Group during the 2nd quarter worth $55,000. Finally, Raymond James Financial Inc. acquired a new position in shares of VNET Group during the 2nd quarter worth approximately $69,000. Institutional investors and hedge funds 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.