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

Key Points

• VNET Group missed earnings expectations for the quarter, reporting EPS of ($1.20) versus the expected ($0.03), while revenue came in slightly above estimates at $390.32 million.
• Despite the earnings miss, management said the company had a strong first quarter, with revenue up 19.8% year over year and adjusted EBITDA up 30.6%, driven by wholesale IDC growth.
• AI-driven demand is boosting wholesale business, with capacity in service rising to 907 MW and the company winning 517 MW of wholesale orders year-to-date; management also maintained its 2026 guidance and full-year CapEx plans.

VNET Group (NASDAQ:VNET - Get Free Report) issued its quarterly earnings results on Tuesday. The information technology services provider reported ($1.20) earnings per share (EPS) 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 the consensus estimate 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 Stock Up 8.0%

NASDAQ:VNET opened at $10.71 on Thursday. VNET Group has a twelve month low of $5.14 and a twelve month high of $14.48. The company has a market cap of $2.90 billion, a price-to-earnings ratio of -7.82 and a beta of 0.19. The stock has a fifty day simple moving average of $9.06 and a 200-day simple moving average of $9.72. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 2.68.

Insider Buying and Selling at VNET Group

In other news, Director David Lifeng Chen sold 83,544 shares of VNET Group stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $1.51, for a total transaction of $126,151.44. Following the completion of the sale, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 12.10% of the company's stock.

Institutional Trading of VNET Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Orion Porfolio Solutions LLC raised its stake in shares of VNET Group by 6.1% during the third quarter. Orion Porfolio Solutions LLC now owns 21,491 shares of the information technology services provider's stock valued at $222,000 after acquiring an additional 1,237 shares in the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of VNET Group by 52.2% during the second quarter. EverSource Wealth Advisors LLC now owns 4,157 shares of the information technology services provider's stock valued at $29,000 after acquiring an additional 1,426 shares in the last quarter. Raymond James Financial Inc. raised its stake in shares of VNET Group by 14.5% during the third quarter. Raymond James Financial Inc. now owns 11,446 shares of the information technology services provider's stock valued at $118,000 after acquiring an additional 1,446 shares in the last quarter. Global Retirement Partners LLC bought a new stake in shares of VNET Group in the fourth quarter valued at about $27,000. Finally, Public Employees Retirement System of Ohio raised its holdings in shares of VNET Group by 14.5% in the fourth quarter. Public Employees Retirement System of Ohio now owns 30,800 shares of the information technology services provider's stock valued at $261,000 after acquiring an additional 3,900 shares in the last quarter. Institutional investors own 72.83% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. Wall Street Zen upgraded VNET Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Weiss Ratings restated a "sell (d-)" rating on shares of VNET Group in a research report on Friday, March 27th. Zacks Research lowered VNET Group from a "hold" rating to a "strong sell" rating in a research report on Monday, May 18th. Jefferies Financial Group restated a "buy" rating and set a $24.79 target price on shares of VNET Group in a research report on Tuesday. Finally, Morgan Stanley restated an "overweight" rating and set a $16.00 target price on shares of VNET Group in a research report on Wednesday. Three analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target 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.

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