VNET Group (NASDAQ:VNET) Issues Quarterly Earnings Results

VNET Group (NASDAQ:VNET) released its earnings results on Tuesday. The information technology services provider reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.04), Zacks reports. VNET Group had a negative net margin of 22.29% and a negative return on equity of 34.65%. The business had revenue of $409.00 million for the quarter, compared to analyst estimates of $401.77 million.

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

• Positive Sentiment: AI-driven demand remained strong, with VNET securing 347 MW of Q2 orders and 862 MW year to date; total orders and reservations exceeded 1.2 GW, providing visibility into future deliveries.
• Positive Sentiment: Wholesale capacity in service surpassed 1 GW, rising 49.4% year over year, while utilized capacity increased 45.5% to 744 MW. Mature wholesale utilization reached 92.5%, and management expects move-ins to improve modestly in the second half.
• Positive Sentiment: Q2 revenue rose 14.2% to RMB 2.78 billion and adjusted EBITDA increased 25.4% to RMB 918.3 million, while adjusted net income turned positive at RMB 7.4 million. Management reiterated full-year revenue guidance of RMB 11.5–11.8 billion and adjusted EBITDA guidance of RMB 3.55–3.75 billion.
• Neutral Sentiment: VNET added substantial resource reserves, including approximately 1.4 GW of new land-bank capacity and about 500 MW overseas, but said overseas development will remain cautious and primarily follow firm customer orders. The first overseas delivery is expected in Southeast Asia, with the Middle East and Europe under evaluation.
• Negative Sentiment: Adjusted cash gross margin declined to 41.8% from 43.6% a year earlier, mainly due to higher utility usage and pass-through effects, while customer concentration remains notable, with 510 MW of first-half orders tied to one leading internet customer. Full-year 2026 CapEx is expected to remain high at RMB 10–12 billion, and net debt stood at 4.6 times annualized adjusted EBITDA.

VNET Group Price Performance

Shares of VNET opened at $6.80 on Thursday. The stock has a 50 day simple moving average of $7.79 and a 200 day simple moving average of $9.18. VNET Group has a 52-week low of $6.17 and a 52-week high of $14.48. The company has a debt-to-equity ratio of 3.99, a quick ratio of 0.99 and a current ratio of 0.99. The firm has a market capitalization of $1.84 billion, a PE ratio of -4.79 and a beta of 0.32.

Wall Street Analyst Weigh In

A number of analysts have commented on VNET shares. Jefferies Financial Group reaffirmed a “buy” rating and set a $24.79 target price on shares of VNET Group in a report on Tuesday, May 26th. Wall Street Zen downgraded VNET Group from a “hold” rating to a “sell” rating in a research note on Saturday, June 27th. Deutsche Bank Aktiengesellschaft started coverage on VNET Group in a research report on Tuesday, July 7th. They issued a “buy” rating and a $12.50 price target on the stock. Morgan Stanley reaffirmed an “overweight” rating and set a $14.00 price objective on shares of VNET Group in a research note on Wednesday. Finally, Bank of America set a $16.30 price objective on VNET Group and gave the company a “buy” rating in a report on Tuesday, May 26th. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $16.90.

Trending Headlines about VNET Group

Here are the key news stories impacting VNET Group this week:

• Positive Sentiment: VNET reported second-quarter revenue of RMB2.78 billion (approximately $409.5 million), up 14.2% year over year and ahead of the roughly $401.8 million analyst consensus. VNET Reports Unaudited Second Quarter 2026 Financial Results
• Positive Sentiment: The company announced a strategic cooperation agreement with CATL to combine VNET’s data-center infrastructure with CATL’s zero-carbon energy technology. The initiative could support more efficient, lower-carbon computing capacity and strengthen VNET’s positioning in artificial intelligence and data-center infrastructure. VNET Announces Strategic Cooperation with CATL
• Positive Sentiment: Management reiterated its 2026 revenue outlook of approximately RMB11.5 billion to RMB11.8 billion, or roughly $1.7 billion, and continues to target 450 to 500 megawatts of deliveries. Maintaining the forecast provides some reassurance that demand expectations remain intact. VNET 2026 Revenue Guidance
• Neutral Sentiment: Recent insider-trading coverage was listed for VNET Group, but the available report does not provide enough detail to determine whether insider activity is bullish or bearish. VNET Group Insider Trading
• Negative Sentiment: Second-quarter adjusted loss was $0.06 per share, worse than the $0.02 loss analysts expected. Reports also highlighted that the net loss widened, reinforcing concerns about profitability. VNET Group Shares Fall After 2Q Loss Widens
• Negative Sentiment: The earnings miss came alongside a negative net margin of 22.01% and negative return on equity of 31.59%, highlighting continued financial pressure despite double-digit revenue growth. VNET Second-Quarter Results
• Negative Sentiment: Investor reaction has focused on the wider loss and cautious tone around 2026 guidance. The stock remains below both its 50-day and 200-day moving averages, suggesting weak momentum as investors weigh growth investments against high leverage and ongoing losses. VNET Shares Slide After Q2 Earnings Miss

Insider Buying and Selling

In other VNET Group news, Director Sean Shao sold 60,000 shares of VNET Group stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $1.71, for a total value of $102,600.00. Following the transaction, the director owned 983,820 shares of the company’s stock, valued at approximately $1,682,332.20. The trade was a 5.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 12.10% of the company’s stock.

Institutional Investors Weigh In On VNET Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. BNP Paribas Financial Markets lifted its holdings in shares of VNET Group by 674.8% in the second quarter. BNP Paribas Financial Markets now owns 3,343,088 shares of the information technology services provider’s stock valued at $23,067,000 after purchasing an additional 2,911,604 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of VNET Group by 1,750.9% during the fourth quarter. JPMorgan Chase & Co. now owns 2,502,622 shares of the information technology services provider’s stock worth $21,172,000 after buying an additional 2,367,410 shares in the last quarter. Bank of America Corp DE raised its position in VNET Group by 288.5% in the 2nd quarter. Bank of America Corp DE now owns 2,577,675 shares of the information technology services provider’s stock valued at $17,786,000 after buying an additional 1,914,201 shares during the last quarter. UBS Group AG raised its position in VNET Group by 73.2% in the 3rd quarter. UBS Group AG now owns 4,283,660 shares of the information technology services provider’s stock valued at $44,250,000 after buying an additional 1,809,987 shares during the last quarter. Finally, National Bank of Canada FI bought a new stake in VNET Group in the 3rd quarter valued at approximately $11,843,000. 72.83% of the stock is currently owned by institutional investors and hedge funds.

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.