VNET

This article first appeared on GuruFocus. Total Net Revenues: RMB2.78 billion, up 14.2% year over year. Wholesale IDC Revenue: RMB1.10 billion, up 29.3% year over year, accounting for 39.8% of total revenue. Retail IDC Revenue: RMB1.05 billion, up 9.1% year over year. Non-IDC Revenue: RMB628.4 million, up 1.1% year over year. Adjusted EBITDA: RMB918.3 million, up 25.4% year over year; margin improved to 33.0% from 30.1%. Adjusted Cash Gross Profit: RMB1.16 billion, up 9.4% year over year; margin was 41.8%, down from 43.6%. Adjusted Net Income: RMB7.4 million, a turnaround from an adjusted net loss in the prior-year period. Net Operating Cash Inflow (H1 2026): RMB391.8 million; RMB781.5 million excluding income tax related to capital transactions and other one-off items. Cash Position: Total cash, cash equivalents, restricted cash, and short-term investments reached RMB7.21 billion as of June 30, 2026. Capital Expenditures (H1 2026): RMB3.55 billion; full-year 2026 CapEx guidance maintained at RMB10 billion to RMB12 billion. Wholesale Capacity in Service: 1,007 megawatts, up 49.4% year over year; utilization rate at 73.9%. Retail MRR per Cabinet: RMB9,799 in Q2 2026; retail utilization rate stable at 64.5%. New Order Wins (Q2 2026): 347 megawatts, including 345 megawatts from Wholesale IDC; year-to-date wholesale orders total 862 megawatts. Full-Year 2026 Guidance: Total net revenues expected at RMB11.5 billion to RMB11.8 billion (up 15.6% to 18.6%); adjusted EBITDA expected at RMB3.55 billion to RMB3.75 billion (up 19.2% to 25.9%). Warning! GuruFocus has detected 8 Warning Signs with VNET. Is VNET fairly valued? Test your thesis with our free DCF calculator. Release Date: August 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. VNET Group Inc (NASDAQ:VNET) secured 347 megawatts of new wholesale orders in Q2 2026, bringing year-to-date total to 862 megawatts, demonstrating strong demand. Wholesale capacity in service surpassed 1 gigawatt, growing 49.4% year-over-year to 1,007 megawatts, with a high utilization rate of 73.9%. Total net revenues increased 14.2% year-over-year to RMB2.78 billion, driven by a 29.3% growth in wholesale revenues. Adjusted EBITDA grew 25.4% year-over-year to RMB918.3 million, with adjusted net income turning positive at RMB7.4 million. The company secured a strategic partnership with CATL to develop integrated compute-energy ecosystems, enhancing long-term growth prospects. VNET Group Inc (NASDAQ:VNET) expanded its resource reserves to over 3.5 gigawatts in China and approximately 500 megawatts overseas, providing a multi-year growth runway. Adjusted cash gross margin decreased slightly to 41.8% from 43.6% in the prior year, due to higher utility costs for customers. Wholesale revenue growth in Q2 was slightly weaker than expected, partly due to slower customer move-in pace in the early quarter. The company's new order wins are concentrated in a single customer, raising concerns about customer concentration risk. CapEx for 2026 is expected to be high, ranging from RMB10 billion to RMB12 billion, which may pressure cash flow. The overseas expansion strategy is cautious and dependent on securing firm orders before development, limiting near-term revenue contribution. The company faces structural supply-demand imbalances in the industry, with potential pricing pressures for new projects. Q: Could you provide an update on the overall supply and demand situation in key regions and any updated outlook for pricing dynamics?A: Wen Teng (Rotating President): Overall compute demand is steadily trending up, driven by both AI training and inferencing. Incremental demand is largely from leading internet companies procuring high-capacity, high-density cabinet resources in key regions, with several major players expected to issue gigawatt-level tenders in 2026. While national data center capacity continues to expand, there is a clear structural mismatch, as aggregate capacity does not translate into effective supply of high-power smart computing resources. The sector is in a tight equilibrium, constrained by power availability and chip supply chains, with analysts expecting this imbalance to persist until around 2028. For new projects, pricing will factor in peer rates, construction costs, resource scarcity, and target returns. Q: Can you share color on the moving pace of wholesale customers in Q2 and the CapEx outlook for next year, including overseas project timelines and unit economics?A: Wen Teng (Rotating President) and Peter Zhang (SVP of Operational Finance): We maintained a steady moving pace in Q2 and expect a marginally faster pace in the second half of 2026, supported by the ramp-up of domestic chip production capacity. Regarding CapEx, our spending is centered around demand and actual deliveries, with the full-year 2026 CapEx guidance maintained at RMB10 billion to RMB12 billion. For overseas development, we have 500 megawatts of reserved resources and will maintain a prudent approach, securing firm customer orders before developing these resources. Sharon Liu (EVP) added that we will initially use our own funds to acquire land overseas, and only begin mechanical and electrical fit-out once firm orders are secured. Q: Could you update us on the overseas expansion strategy, including focus countries and the development pipeline, as well as the progress of the CATL cooperation and the transaction with Shandong Hi-Speed?A: Wen Teng (Rotating President): Our overseas strategy is to stay responsive to customers' needs as they expand globally. The first overseas project to be delivered will be in Southeast Asia, while we are also evaluating opportunities in the Middle East and Europe. Regarding CATL, we have built a full-scale strategic partnership focused on three areas: gigawatt-scale computing energy facilities, distributed computing and energy networks, and a zero-carbon token ecosystem. The goal is to build a national and eventually global network to become a defining player in digital energy infrastructure for the AI era. We will disclose more progress as definitive milestones are reached. Q: The Q2 new bookings are very strong but concentrated in one customer. How should we think about customer mix going forward, and do we see potential for sizable orders from emerging AI leaders?A: Wen Teng (Rotating President): We signed a cumulative 862 megawatts of new orders in the first half, including a 510-megawatt order with a leading internet company and a 345-megawatt order with another leading computing enterprise in Q2. In addition to deepening collaboration with leading internet companies and hyperscalers, we are actively expanding our customer base to include more AI model companies, high-growth AI industry players, and leading companies from various verticals. We will continue to fine-tune the customer mix to pursue a more diversified base. Q: Is the strong OpEx performance this quarter sustainable going forward?A: Peter Zhang (SVP of Operational Finance): Cost reduction has been an ongoing theme, and we have seen clear results in Q2. Over the long run, we will leverage economies of scale to reduce overall operational costs, including measures like headcount control and maximizing the efficiency of AI tools within the company. We will disclose the concrete benefits from these initiatives to the market in a timely manner. Q: Can you share more color on the 1.5 gigawatts of new land bank resources added in Q2, including locations, power supplies, and government approvals? Also, why did Q2's cash gross margin decline quarter over quarter?A: Wen Teng (Rotating President) and Peter Zhang (SVP of Operational Finance): The 900 megawatts of new resources added in China during Q2 are primarily located in Inner Mongolia and East China regions. Over the next three years, we will continue to obtain new resources in Inner Mongolia, particularly the Ulanqab area. Regarding the gross margin decline, there are two reasons: utility usage in Q2 was significantly higher than Q1 due to the pass-through mechanism, and there was a one-off gain in Q1. Together, these two factors weighed on the gross margin. Q: How long does it typically take for reserved capacity to convert into orders, and is there potential for additional large-scale capacity reservations in the second half of the year?A: Wen Teng (Rotating President): Orders and reserved capacity are typically covered in the same sales agreement. Orders are capacity customers have formally committed to, while reserved capacity is future expansion resources pre-locked at the same site. Historically, all customer reservations have converted to firm orders, making this a high-quality backlog with strong conversion certainty. The timing for the 355 megawatts of reservations depends on each customer's deployment schedule and will happen in batches as their projects progress. Q: Can you elaborate on the wholesale revenue performance in Q2, which was slightly weaker than expected, and how the trend is progressing into Q3?A: Wen Teng (Rotating President): We maintained a very steady moving pace in Q2 and will sustain that momentum. The moving pace is influenced by multiple factors, including chip supply, customer model iteration speed, and project progress. We expect a faster moving pace in the second half of 2026 compared to the first half, as domestic chip production capacity is ramping up and will be released in the second half, which should push our moving pace higher. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in VNET Group, Inc. - Unsponsored ADR? Here are five stocks we like better. Strong Q2 performance: Revenue increased 14.2% year over year to RMB 2.78 billion, while adjusted EBITDA rose 25.4% to RMB 918.3 million. VNET reaffirmed its full-year 2026 revenue and EBITDA forecasts. Wholesale and AI-driven demand accelerated growth: VNET secured 347 megawatts of new orders in Q2 and 862 megawatts in the first half, with total orders and reservations exceeding 1.2 gigawatts. AI workloads are driving demand, though power and chip availability remain constraints. Capacity expansion remains capital-intensive: Wholesale capacity in service surpassed one gigawatt, while VNET plans RMB 10 billion–RMB 12 billion in 2026 capital expenditures to support 450–500 megawatts of deliveries. The company is also pursuing overseas projects cautiously and exploring a gigawatt-scale computing and energy partnership with CATL. VNET Group Stock is a Tax Loss Selling Play VNET Group (NASDAQ:VNET) reported second-quarter 2026 revenue growth driven by its wholesale internet data center business, while management said demand for AI computing infrastructure continued to support new orders, capacity expansion and longer-term customer reservations. Total net revenue rose 14.2% year over year to RMB 2.78 billion. Adjusted EBITDA increased 25.4% to RMB 918.3 million, and adjusted net income was RMB 7.4 million, compared with an adjusted net loss in the prior-year quarter, according to Peter Zhang, senior vice president of operational finance. → AMG’s Alternatives Boom Powers Record Growth The company reiterated its full-year outlook, forecasting 2026 revenue of RMB 11.5 billion to RMB 11.8 billion, representing year-over-year growth of 15.6% to 18.6%. It continues to expect adjusted EBITDA of RMB 3.55 billion to RMB 3.75 billion, up 19.2% to 25.9% from 2025. Rotating President Wen Teng said VNET secured 347 megawatts of new orders during the quarter, including 345 megawatts from its wholesale IDC business. The wholesale order came from a leading cloud service provider for a data center in the greater Beijing area. → Microsoft's Maia 300 Chip Targets NVIDIA's AI Dominance Including 517 megawatts of orders announced in the prior quarter, VNET’s wholesale IDC business secured 862 megawatts of new orders in the first half of 2026. The company also received about 2 megawatts of retail orders from customers in IT services, local services and financial services. As of June 30, wholesale capacity in service had increased 49.4% year over year to 1,007 megawatts, surpassing one gigawatt for the first time. Customer-utilized wholesale capacity increased 45.5% to 744 megawatts, resulting in a utilization rate of 73.9%. Mature capacity utilization was 92.5%. → The Metals Company’s Big Bet Now Comes Down to a License VNET said 96.3% of its in-service wholesale capacity was committed by customers. Its 585 megawatts of wholesale capacity under construction was 94.2% pre-committed. More than 90% of wholesale IDC revenue was recurring, and the weighted average remaining lease term for committed capacity was seven years. Customer reservations stood at 355 megawatts at the end of the quarter, bringing total orders and reservations to more than 1.2 gigawatts. Teng said reservations are typically included in the same sales agreements as firm orders and represent future expansion capacity locked in by customers at the same location. He said all customer reservations historically had converted into firm orders, although timing depends on customers’ deployment schedules. Approximately 287 megawatts of orders are scheduled for delivery in 2026. About 345 megawatts are expected to be delivered in 2027. Roughly 230 megawatts are scheduled for delivery in 2028 and beyond. Management said AI training and inference workloads were supporting demand from leading internet companies, cloud providers and AI-focused businesses. Teng said several major companies were expected to issue gigawatt-scale tenders in 2026, primarily in national hubs under China’s Eastern Data, Western Computing Initiative. While national data center capacity continues to expand, Teng said there is a structural mismatch between aggregate supply and the availability of high-power computing resources. He cited power availability and chip supply chains as constraints on effective computing-capacity supply, adding that multiple industry analysts expect the imbalance to continue until around 2028. On pricing, Teng said existing projects would continue to follow contracted rates. For new projects, VNET will consider regional peer pricing, construction costs, resource scarcity, competitive conditions and targeted returns. Management said wholesale customer move-ins were steady in the second quarter and could improve marginally in the second half of 2026. Teng attributed the expected improvement partly to the planned release of domestic chip production capacity, while noting that customers’ model-development and project-implementation timelines also affect deployment pace. Wholesale revenue increased 29.3% year over year to RMB 1.10 billion, accounting for 39.8% of total revenue and exceeding retail revenue for a second consecutive quarter. Retail revenue rose 9.1% to RMB 1.05 billion, while non-IDC business revenue increased 1.1% to RMB 628.4 million. Retail IDC capacity in service totaled 50,081 cabinets, with utilization stable at 64.5%. Monthly recurring revenue per retail cabinet increased to RMB 9,799. Adjusted cash gross profit rose 9.4% to RMB 1.16 billion. Adjusted cash gross margin declined to 41.8% from 43.6% a year earlier, which Zhang attributed primarily to higher utility costs for customers. In response to a question on sequential margin movement, he also cited substantially higher electricity usage in the second quarter under a pass-through mechanism and a one-off gain recorded in the first quarter. Adjusted EBITDA margin improved to 33.0% from 30.1% a year earlier. Zhang said the company intends to continue pursuing cost reductions through scale, headcount controls and the use of AI tools. Capital expenditures totaled RMB 3.55 billion in the first half, largely for wholesale data center construction and capacity expansion. VNET maintained its full-year CapEx forecast of RMB 10 billion to RMB 12 billion, supporting planned delivery of 450 to 500 megawatts during 2026. VNET said its total capacity in mainland China exceeded 3.5 gigawatts at the end of the quarter, and wholesale resource capacity exceeded 4 gigawatts after an approximately 1.5-gigawatt increase during the quarter. The company said it added more than 900 megawatts of domestic resource reserves, primarily in Inner Mongolia and East China, as well as approximately 500 megawatts of overseas resources. The company plans to deliver 585 megawatts over the next 12 months, including about 333 megawatts in the second half of 2026 and about 252 megawatts in the first half of 2027. Most of those deliveries are expected to come from its Ulanqab IDC campus. Management said its first overseas project is expected to be delivered in Southeast Asia, while the company also evaluates opportunities in the Middle East and Europe. Zhang and Executive Vice President Sharon Liu said overseas development will remain prudent, with land acquired using the company’s funds and mechanical and electrical buildouts beginning only after firm customer orders are secured. VNET also announced a strategic cooperation agreement with CATL focused on integrating computing and energy infrastructure. Teng said the companies aim to develop gigawatt-scale compute-energy facilities, distributed compute-energy networks and a zero-carbon token ecosystem, though he did not provide a timetable or financial targets for the partnership. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "VNET Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

BEIJING, Aug. 18, 2026 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Total net revenues increased by 14.2% year-over-year to RMB2.78 billion (US$409.5 million) in the second quarter of 2026 (2Q2025: RMB2.43 billion). Net revenues from the wholesale IDC business ("wholesale revenues") increased by 29.3% year-over-year to RMB1.10 billion (US$162.8 million) in the second quarter of 2026 (2Q2025: RMB854.1 million). Adjusted cash gross profit (non-GAAP) increased by 9.4% year-over-year to RMB1.16 billion (US$171.2 million) in the second quarter of 2026 (2Q2025: RMB1.06 billion). Adjusted cash gross margin (non-GAAP) was 41.8% in the second quarter of 2026 (2Q2025: 43.6%). Adjusted EBITDA (non-GAAP) increased by 25.4% year-over-year to RMB918.3 million (US$135.3 million) in the second quarter of 2026 (2Q2025: RMB732.5 million). Adjusted EBITDA margin (non-GAAP) was 33.0% in the second quarter of 2026 (2Q2025: 30.1%). Adjusted net income (non-GAAP) was RMB7.4 million (US$1.1 million) in the second quarter of 2026 (2Q2025: adjusted net loss of RMB53.6 million). Second Quarter 2026 Operational Highlights Wholesale capacity in service increased by 49.4% year-over-year to 1,007MW as of June 30, 2026 (June 30, 2025: 674MW). Wholesale capacity utilized by customers increased to 45.5% year-over-year to 744MW as of June 30, 2026 (June 30, 2025: 511MW). Retail monthly recurring revenue (MRR) per retail cabinet increased by 9.9% year-over-year to RMB9,799 in the second quarter of 2026 (2Q2025: RMB8,915). "We achieved robust growth across our key financial and operational metrics in the second quarter of 2026, as our execution capabilities and high-quality deliveries continued to attract new orders," said Josh Sheng Chen, Founder, Executive Chairperson of VNET. "We secured a 345MW wholesale order from a leading cloud service provider in the second quarter, bringing our total wholesale order wins to 862MW year-to-date. Meanwhile, we continued to expand our strategic resource reserves, securing approximately 1.4GW of land bank capacity during the second quarter, including 908MW in the Chinese mainland and 478MW overseas. This increased our total capacity to over 4GW, providing a clear, multi-year growth runway across both domestic and international markets. "In addition, we deepened our collaboration with Contemporary Amperex Technology Co., Limited and signed a strategic cooperation agreement to jointly develop a three‑layer integrated compute-energy ecosystem comprising gigawatt‑scale compute-energy facilities, distributed compute-energy networks, and a zero‑carbon token ecosystem. By combining our complementary strengths and deepening cooperation across technology, infrastructure and supply chains, we will jointly advance innovation in integrated compute-energy systems. Together, we aim to contribute to the next generation of digital energy infrastructure in the intelligent era." Peter Zhihua Zhang, Senior Vice President, Operational Finance of VNET, commented, "In the second quarter, our total net revenues increased by 14.2% year-over-year to RMB2.78 billion, mainly driven by 29.3% year-over-year growth in wholesale revenues. Wholesale revenues once again surpassed retail, increasing wholesale's contribution to 39.8% of our total net revenues and reinforcing its position as our primary growth engine. Strong order momentum, long-term customer commitments and our well-paced delivery roadmap strengthen the visibility into our future revenue growth. Adjusted EBITDA increased by 25.4% year-over-year to RMB918.3 million, with its margin expanding by 3.0 percentage points to 33.0%. Moving forward, we will remain focused on disciplined execution across delivery, capacity expansion and capital allocation, driving high-quality growth and creating value for our shareholders." Second Quarter 2026 Financial Results TOTAL NET REVENUES: Total net revenues in the second quarter of 2026 were RMB2.78 billion (US$409.5 million), representing an increase of 14.2% from RMB2.43 billion in the same period of 2025. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business. Net revenues from IDC business increased by 18.6% to RMB2.15 billion (US$316.9 million) from RMB1.81 billion in the same period of 2025. The year-over-year increase was mainly driven by an increase in wholesale revenues. Wholesale revenues increased by 29.3% to RMB1.10 billion (US$162.8 million) from RMB854.1 million in the same period of 2025. Retail revenues increased by 9.1% to RMB1.05 billion (US$154.1 million) from RMB958.7 million in the same period of 2025. Net revenues from non-IDC business increased by 1.1% to RMB628.4 million (US$92.6 million) from RMB621.4 million in the same period of 2025. GROSS PROFIT: Gross profit in the second quarter of 2026 was RMB505.2 million (US$74.5 million), representing a decrease of 7.8% from RMB547.7 million in the same period of 2025, mainly due to increased depreciation costs associated with our rapid capacity expansion. Gross margin in the second quarter of 2026 was 18.2%, compared with 22.5% in the same period of 2025. ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation and amortization and share-based compensation expenses from gross profit, increased by 9.4% to RMB1.16 billion (US$171.2 million) in the second quarter of 2026 from RMB1.06 billion in the same period of 2025. Adjusted cash gross margin (non-GAAP) in the second quarter of 2026 was 41.8%, compared with 43.6% in the same period of 2025. OPERATING EXPENSES: Total operating expenses in the second quarter of 2026 were RMB275.9 million (US$40.7 million), compared with RMB374.7 million in the same period of 2025. Sales and marketing expenses were RMB58.8 million (US$8.7 million) in the second quarter of 2026, compared with RMB70.0 million in the same period of 2025. Research and development expenses were RMB75.2 million (US$11.1 million) in the second quarter of 2026, compared with RMB67.6 million in the same period of 2025. General and administrative expenses were RMB164.9 million (US$24.3 million) in the second quarter of 2026, compared with RMB212.5 million in the same period of 2025. ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses from operating expenses, were RMB271.0 million (US$39.9 million) in the second quarter of 2026, compared with RMB365.6 million in the same period of 2025. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the second quarter of 2026 were 9.8%, compared with 15.0% in the same period of 2025. ADJUSTED EBITDA (non-GAAP), which excludes depreciation and amortization and share-based compensation expenses from operating profit, was RMB918.3 million (US$135.3 million) in the second quarter of 2026, representing an increase of 25.4% from RMB732.5 million in the same period of 2025. Adjusted EBITDA margin (non-GAAP) in the second quarter of 2026 was 33.0%, compared with 30.1% in the same period of 2025. NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the second quarter of 2026 was RMB135.6 million (US$20.0 million), compared with RMB11.9 million in the same period of 2025. The increase in net loss was primarily attributable to a loss of RMB47.1 million from changes in the fair value of financial instruments in the second quarter of 2026. By comparison, the Company recognized a gain of RMB70.4 million from changes in the fair value of financial instruments in the second quarter of 2025. ADJUSTED NET INCOME (LOSS) (non-GAAP) excludes changes in the fair value of financial instruments from net income (loss). Adjusted net income in the second quarter of 2026 was RMB7.4 million (US$1.1 million), compared with an adjusted net loss of RMB53.6 million in the same period of 2025. LOSS PER SHARE: Basic and diluted loss per share in the second quarter of 2026 were both RMB0.09 (US$0.01), which represents the equivalent of RMB0.54 (US$0.06) per American depositary share ("ADS"). Each ADS represents six Class A ordinary shares. Diluted loss per share is calculated using adjusted net loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding. LIQUIDITY: As of June 30, 2026, the aggregate amount of the Company's cash and cash equivalents, restricted cash and short-term investments was RMB7.21 billion (US$1.06 billion). Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was RMB4.18 billion (US$616.1 million). Total long-term debt was RMB19.24 billion (US$2.84 billion), comprised of long-term borrowings of RMB14.40 billion (US$2.12 billion) and convertible notes of RMB4.84 billion (US$712.8 million). Net cash generated from operating activities in the second quarter of 2026 was RMB218.1 million (US$32.1 million), compared with RMB366.6 million in the same period of 2025. During the second quarter of 2026, the Company obtained new debt financing, refinancing facilities, equity financing and other financings of RMB3.77 billion (US$556.0 million). Second Quarter 2026 Operational Results Wholesale IDC Business Capacity in service was 1,007MW as of June 30, 2026, compared with 907MW as of March 31, 2026, and 674MW as of June 30, 2025. Capacity under construction was 585MW as of June 30, 2026. Capacity utilized by customers reached 744MW as of June 30, 2026, compared with 687MW as of March 31, 2026, and 511MW as of June 30, 2025. The sequential increase of 57MW was mainly contributed by the N-HB Campus 03 and N-OR Campus 01 data centers. Utilization rate[1] of wholesale capacity was 73.9% as of June 30, 2026, compared with 75.7% as of March 31, 2026, and 75.9% as of June 30, 2025. Total capacity committed[4] was 970MW as of June 30, 2026, compared with 869MW as of March 31, 2026, and 674MW as of June 30, 2025. Commitment rate[5] for capacity in service was 96.3% as of June 30, 2026, compared with 95.7% as of March 31, 2026, and 100% as of June 30, 2025. Retail IDC Business[6] Capacity in service was 50,081 cabinets as of June 30, 2026, compared with 50,170 cabinets as of March 31, 2026, and 52,131 cabinets as of June 30, 2025. Capacity utilized by customers was 32,314 cabinets as of June 30, 2026, compared with 32,165 cabinets as of March 31, 2026, and 33,292 cabinets as of June 30, 2025. Utilization rate of retail capacity was 64.5% as of June 30, 2026, compared with 64.1% as of March 31, 2026, and 63.9% as of June 30, 2025. Monthly recurring revenue (MRR) per retail cabinet was RMB9,799 in the second quarter of 2026, compared with RMB9,448 in the first quarter of 2026 and RMB8,915 in the second quarter of 2025. Recent Developments On August 18, 2026, we signed a strategic cooperation agreement with Contemporary Amperex Technology Co., Limited ("CATL"), under which both parties will establish a partnership to deepen compute-energy integration by synergistically combining VNET's leadership in large‑scale computing infrastructure development and operations with CATL's expertise in zero‑carbon new energy technologies. With the goal of shaping next generation digital energy infrastructure globally, and leveraging green DC and direct green power connection technologies, the parties plan to jointly develop a three‑layer integrated compute-energy ecosystem comprising gigawatt‑scale compute-energy facilities, distributed compute-energy networks, and a zero‑carbon token ecosystem. Business Outlook For the full year of 2026, the Company expects its total net revenues to be in the range of RMB11.5 billion to RMB11.8 billion, representing year-over-year growth of 15.6% to 18.6%, and adjusted EBITDA (non-GAAP) to be in the range of RMB3,550 million to RMB3,750 million, representing year-over-year growth of 19.2% to 25.9%. In addition, the Company expects capital expenditure to be in the range of RMB10 billion to RMB12 billion for the full year of 2026. The above outlook remains unchanged from the previously provided estimates. The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change. Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, August 18, 2026, or 8:00 PM Beijing Time on Tuesday, August 18, 2026. For participants who wish to join the call, please access the links provided below to complete the online registration process. English line:https://s1.c-conf.com/diamondpass/10056504-wstpwx.html Chinese line (listen-only mode):https://s1.c-conf.com/diamondpass/10056507-c7sjs6e.html Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.vnet.com. A replay of the conference call will be accessible through August 25, 2026, by dialing the following numbers: Non-GAAP Disclosure In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA, adjusted EBITDA margin and adjusted net income (loss). The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release. The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. Exchange Rate This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Statement Regarding Unaudited Condensed Financial Information The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information. About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies and government entities to blue-chip enterprises and small- to mid-sized enterprises. Safe Harbor Statement This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement. VNET's strategic and operational plans as well as Business Outlook contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: VNET IR TeamTel: +86 10 8456 2121Email: [email protected] View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-second-quarter-2026-financial-results-302853949.html

Docebo Inc. (DCBO) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +59.09%. A quarter ago, it was expected that this company would post earnings of $0.33 per share when it actually produced earnings of $0.34, delivering a surprise of +3.03%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Docebo, which belongs to the Zacks Internet - Software industry, posted revenues of $68.65 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.16%. This compares to year-ago revenues of $60.73 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Docebo shares have lost about 7.8% since the beginning of the year versus the S&P 500's gain of 12.6%. While Docebo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Docebo was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $69.6 million in revenues for the coming quarter and $1.58 on $275.2 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, VNET Group (VNET), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 18. This provider of carrier-neutral internet data center services is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -500%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VNET Group's revenues are expected to be $405.24 million, up 19.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Docebo Inc. (DCBO) : Free Stock Analysis Report VNET Group, Inc. - Unsponsored ADR (VNET) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

BEIJING, Aug. 4, 2026 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral internet data center services provider in China, today announced that it will report its unaudited second quarter 2026 financial results on Tuesday, August 18, 2026, before the open of U.S. markets. The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, August 18, 2026, or 8:00 PM Beijing Time on Tuesday, August 18, 2026. For participants who wish to join the call, please access the links provided below to complete the online registration process. English line: https://s1.c-conf.com/diamondpass/10056504-wstpwx.html Chinese line (listen-only mode): https://s1.c-conf.com/diamondpass/10056507-c7sjs6e.html Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.vnet.com. A replay of the conference call will be accessible through August 25, 2026, by dialing the following numbers: About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises. Investor Relations Contact: VNET IR TeamTel: +86 10 8456 2121Email: [email protected] View original content:https://www.prnewswire.com/news-releases/vnet-to-announce-unaudited-second-quarter-2026-financial-results-on-august-18-2026-302842427.html

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. VNET Group (VNET) is drawing attention after reaffirming its 2026 revenue guidance while reporting first quarter sales of CNY 2,691.14 million and a wider net loss of CNY 531.84 million. See our latest analysis for VNET Group. VNET Group’s recent guidance update and quarterly results come after a strong run in the stock, with 1 month and year to date share price returns of 27.10% and 16.36% and a very large 3 year total shareholder return of 268.06%, although the 5 year total shareholder return is down 47.50%. If you are watching how sentiment around data center and cloud infrastructure evolves, it can also help to scan other opportunities in related areas such as AI infrastructure stocks using the Simply Wall St screener for 47 AI infrastructure stocks With VNET’s share price up 92% over the past year and the stock trading about 47% below the average analyst price target of US$15.56, you have to ask: is there still upside here or is the market already factoring in future growth? The most followed narrative puts VNET Group’s fair value at $15.75 compared with a last close of $10.60, which has drawn attention to the assumptions behind that gap. Read the complete narrative. Curious what has to happen for that valuation to make sense? The narrative leans on faster revenue growth, better profit margins and a richer future earnings multiple. The exact mix of those assumptions is where things get interesting. Result: Fair Value of $15.75 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that upside narrative quickly meets some hard questions around VNET’s high leverage and heavy data center CapEx. These factors could pressure utilization, margins and future refinancing. Find out about the key risks to this VNET Group narrative. Given the mix of optimism and concern running through this story, it makes sense to check the data yourself and decide quickly where you stand, then weigh up the 2 key rewards and 1 important warning sign If VNET has your attention, do not stop here. Broaden your watchlist with other stocks that fit clear, data driven themes using the Simply Wall St screener. Spot potential bargains early by scanning screener containing 22 high quality undiscovered gems that pair solid fundamentals with under-the-radar stories. Prioritise resilience by focusing on companies in the 62 resilient stocks with low risk scores that score well on financial strength and volatility checks. Build a core watchlist around financially robust businesses using the solid balance sheet and fundamentals stocks screener (45 results) for balance sheets that can better handle surprises. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VNET. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

BEIJING, May 26, 2026 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2026. "We delivered a strong first quarter through effective execution of our dual-core strategy and Hyperscale 2.0 framework," said Josh Sheng Chen, Founder, Executive Chairperson and Interim Chief Executive Officer of VNET. "Our wholesale IDC business continued to thrive, securing a total of 517MW of new orders year-to-date 2026, including 510MW from a leading internet customer for our data centers in the Greater Beijing Area. As a pioneer in AIDC, we also advanced the development of high-performance, large-scale, green data center clusters, a segment where surging demand is increasingly constrained by limited resource availability. Moreover, we further strengthened our shareholder base by welcoming the affiliates of Contemporary Amperex Technology Co., Limited ("CATL") as strategic investors. At the same time, we would like to thank Shandong Hi-Speed Holdings Group Limited for their continued trust and support over the years. Looking ahead, our strategic alignment with CATL will unlock meaningful synergies across technology and supply chain, accelerating the development of next-generation AIDC. Going forward, our deep resource reserves in core regions, combined with rapid delivery capabilities and operational excellence, position us well to capture growing demand and reinforce our industry leadership." Peter Zhihua Zhang, Senior Vice President, Operational Finance of VNET, commented, "We sustained our high-quality development trajectory in the first quarter of 2026. Total net revenues increased by 19.8% year-over-year to RMB2.69 billion, driven by 58.1% year-over-year growth in wholesale revenues, while adjusted EBITDA increased by 30.6% year-over-year to RMB891.5 million. This quarter marks a new milestone for us, as wholesale revenues surpassed retail revenues for the first time. Additionally, we further advanced our asset monetization strategy with the successful listing of two REIT projects in March, establishing a scalable capital recycling model that supports efficient reinvestment into new project development and deepens our competitive positioning in this capital-intensive industry. Looking ahead, we remain focused on strengthening our core capabilities to capitalize on AI-driven opportunities, delivering sustainable growth and long-term value for all stakeholders." First Quarter 2026 Financial Highlights Total net revenues increased by 19.8% to RMB2.69 billion (US$390.1 million) from RMB2.25 billion in the same period of 2025. Adjusted cash gross profit (non-GAAP) increased by 25.1% to RMB1.21 billion (US$175.6 million) from RMB967.8 million in the same period of 2025. Adjusted cash gross margin (non-GAAP) was 45.0%, compared with 43.1% in the same period of 2025. Adjusted EBITDA (non-GAAP) increased by 30.6% to RMB891.5 million (US$129.2 million) from RMB682.4 million in the same period of 2025. Adjusted EBITDA margin (non-GAAP) was 33.1%, compared with 30.4% in the same period of 2025. First Quarter 2026 Operational Highlights Wholesale IDC Business Capacity in service was 907MW as of March 31, 2026, compared with 889MW as of December 31, 2025, and 573MW as of March 31, 2025. Capacity under construction was 516MW as of March 31, 2026. Capacity utilized by customers reached 687MW as of March 31, 2026, compared with 623MW as of December 31, 2025, and 437MW as of March 31, 2025. The sequential increase of 64MW was mainly contributed by the N-OR Campus 02A and N-HB Campus 03 data centers. Utilization rate[3] of wholesale capacity was 75.7% as of March 31, 2026, compared with 70.1% as of December 31, 2025, and 76.2% as of March 31, 2025. Total capacity committed[6] was 869MW as of March 31, 2026, compared with 848MW as of December 31, 2025, and 571MW as of March 31, 2025. Commitment rate[7] for capacity in service was 95.7% as of March 31, 2026, compared with 95.3% as of December 31, 2025, and 99.7% as of March 31, 2025. Retail IDC Business[8] Capacity in service was 50,170 cabinets as of March 31, 2026, compared with 49,863 cabinets as of December 31, 2025, and 51,960 cabinets as of March 31, 2025. Capacity utilized by customers was 32,165 cabinets as of March 31, 2026, compared with 31,906 cabinets as of December 31, 2025, and 33,093 cabinets as of March 31, 2025. Utilization rate of retail capacity was 64.1% as of March 31, 2026, compared with 64.0% as of December 31, 2025, and 63.7% as of March 31, 2025. Monthly recurring revenue (MRR) per retail cabinet was RMB9,448 in the first quarter of 2026, compared with RMB9,420 in the fourth quarter of 2025 and RMB8,898 in the first quarter of 2025. First Quarter 2026 Financial Results TOTAL NET REVENUES: Total net revenues in the first quarter of 2026 were RMB2.69 billion (US$390.1 million), representing an increase of 19.8% from RMB2.25 billion in the same period of 2025. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business. Net revenues from IDC business increased by 27.0% to RMB2.08 billion (US$302.2 million) from RMB1.64 billion in the same period of 2025. The year-over-year increase was mainly driven by an increase in wholesale revenues. Wholesale revenues increased by 58.1% to RMB1.06 billion (US$154.3 million) from RMB673.2 million in the same period of 2025. Retail revenues increased by 5.4% to RMB1.02 billion (US$147.9 million) from RMB968.3 million in the same period of 2025. Net revenues from non-IDC business increased by 0.3% to RMB606.6 million (US$87.9 million) from RMB604.8 million in the same period of 2025. GROSS PROFIT: Gross profit in the first quarter of 2026 was RMB615.9 million (US$89.3 million), representing an increase of 8.9% from RMB565.3 million in the same period of 2025. Gross margin in the first quarter of 2026 was 22.9%, compared with 25.2% in the same period of 2025. ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation and amortization and share-based compensation expenses from gross profit, increased by 25.1% to RMB1.21 billion (US$175.6 million) in the first quarter of 2026 from RMB967.8 million in the same period of 2025. Adjusted cash gross margin (non-GAAP) in the first quarter of 2026 was 45.0%, compared with 43.1% in the same period of 2025. OPERATING EXPENSES: Total operating expenses in the first quarter of 2026 were RMB368.9 million (US$53.5 million), compared with RMB316.8 million in the same period of 2025. Sales and marketing expenses were RMB53.7 million (US$7.8 million) in the first quarter of 2026, compared with RMB64.3 million in the same period of 2025. Research and development expenses were RMB74.4 million (US$10.8 million) in the first quarter of 2026, compared with RMB43.6 million in the same period of 2025. General and administrative expenses were RMB162.4 million (US$23.5 million) in the first quarter of 2026, compared with RMB179.8 million in the same period of 2025. ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses from operating expenses, were RMB362.2 million (US$52.5 million) in the first quarter of 2026, compared with RMB310.5 million in the same period of 2025. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the first quarter of 2026 were 13.5%, compared with 13.8% in the same period of 2025. ADJUSTED EBITDA (non-GAAP), which exclude depreciation and amortization, and share-based compensation expenses from operating profit, was RMB891.5 million (US$129.2 million) in the first quarter of 2026, representing an increase of 30.6% from RMB682.4 million in the same period of 2025. Adjusted EBITDA margin (non-GAAP) in the first quarter of 2026 was 33.1%, compared with 30.4% in the same period of 2025. NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the first quarter of 2026 was RMB531.8 million (US$77.1 million), compared with RMB237.6 million in the same period of 2025, primarily attributable to RMB486.2 million capital transactions-related income tax expenses incurred in the first quarter of 2026. LOSS PER SHARE: Basic and diluted loss per share in the first quarter of 2026 were both RMB1.36 (US$0.20), which represents the equivalent of RMB8.16 (US$1.20) per American depositary share ("ADS"). Each ADS represents six Class A ordinary shares. Diluted earnings/loss per share is calculated using adjusted net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding. LIQUIDITY: As of March 31, 2026, the aggregate amount of the Company's cash and cash equivalents, restricted cash and short-term investments was RMB8.80 billion (US$1.28 billion). Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was RMB5.18 billion (US$750.4 million). Total long-term debt was RMB17.77 billion (US$2.58 billion), comprised of long-term borrowings of RMB12.93 billion (US$1.87 billion) and convertible notes of RMB4.83 billion (US$700.8 million). Net cash generated from operating activities in the first quarter of 2026 was RMB173.7 million (US$25.2 million), compared with RMB195.7 million in the same period of 2025. During the first quarter of 2026, the Company obtained new debt financing, refinancing facilities, equity financing and other financings of RMB8.14 billion (US$1.78 billion). Recent Developments On May 13, 2026, the Company announced that certain new strategic investors that are non-controlled and non-consolidated affiliates of Contemporary Amperex Technology Co., Limited (CATL) (the "Buyers") entered into a share purchase agreement with wholly owned subsidiaries of Shandong Hi-Speed Holdings Group Limited (the "Sellers"). Pursuant to the share purchase agreement, the Buyers have agreed to acquire up to 650,424,192 Class A ordinary shares of the Company from the Sellers at a purchase price of US$1.4486 per ordinary share (equivalent to US$8.6914 per ADS) (the "Proposed Investment"). The closing of the transaction is expected to take place in the fourth quarter of 2026, and is subject to conditions set forth in the share purchase agreement, including approval by the shareholders of Shandong Hi-Speed Holdings Group Limited. Upon closing, the Buyers will hold up to approximately 38.1% of the Company's total issued and outstanding shares. Additionally, the Buyers have entered into an Investor Rights Agreement with the company and a voting and consortium agreement with Mr. Josh Sheng Chen, Founder, Executive Chairperson and Interim Chief Executive Officer of VNET, and certain of his affiliated investment vehicles (collectively, the "Founder Parties"), both of which will become effective upon closing of the Proposed Investment. Meanwhile, pursuant to the Investor Rights Agreement, the Company will grant the Buyers certain investor rights and the Buyers will be restricted from transferring or otherwise disposing of certain Class A ordinary shares of the Company acquired in the Proposed Investment for a specified period, subject to terms and conditions of the Investor Rights Agreement. In addition, the Buyers undertake to take necessary actions to support the stability of control of the Company. Business Outlook For the full year of 2026, the Company expects its total net revenues to be in the range of RMB11.5 billion to RMB11.8 billion, representing year-over-year growth of 15.6% to 18.6%, and adjusted EBITDA (non-GAAP) to be in the range of RMB3,550 million to RMB3,750 million, representing year-over-year growth of 19.2% to 25.9%. In addition, the Company expects capital expenditure to be in the range of RMB10 billion to RMB12 billion for the full year of 2026. The above outlook remains unchanged from the previously provided estimates. The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change. Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, May 26, 2026, or 8:00 PM Beijing Time on Tuesday, May 26, 2026. For participants who wish to join the call, please access the links provided below to complete the online registration process. English line:https://s1.c-conf.com/diamondpass/10054823-igj5ty.html Chinese line (listen-only mode):https://s1.c-conf.com/diamondpass/10054824-q1g6uk.html Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.vnet.com. A replay of the conference call will be accessible through June 3, 2026, by dialing the following numbers: Non-GAAP Disclosure In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release. The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. Exchange Rate This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.8980 to US$1.00, the noon buying rate in effect on March 31, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Statement Regarding Unaudited Condensed Financial Information The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information. About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises. Safe Harbor Statement This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement. VNET's strategic and operational plans as well as Business Outlook contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: Xinyuan LiuTel: +86 10 8456 2121Email: [email protected] View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-first-quarter-2026-financial-results-302781602.html

Interested in VNET Group, Inc. - Unsponsored ADR? Here are five stocks we like better. VNET delivered strong Q1 growth, with total net revenues up 19.8% year over year to RMB 2.69 billion and adjusted EBITDA up 30.6% to RMB 891.5 million. Wholesale data center revenue became the company’s largest revenue stream for the first time. AI-driven demand is fueling new orders and utilization, as VNET secured 519 MW of new orders year to date, including 517 MW of wholesale orders. Wholesale capacity utilization climbed to 75.7%, while mature wholesale capacity utilization reached 93.8%. The company reaffirmed its 2026 outlook and heavy expansion plans, guiding to RMB 11.5 billion to RMB 11.8 billion in revenue and RMB 3.55 billion to RMB 3.75 billion in adjusted EBITDA. VNET also kept full-year capex guidance at RMB 10 billion to RMB 12 billion as it works to deliver 450 MW to 500 MW this year. VNET Group Stock is a Tax Loss Selling Play VNET Group (NASDAQ:VNET) said its first-quarter 2026 results were driven by rapid expansion in its wholesale internet data center business, as management pointed to rising artificial intelligence-related demand and new large-scale orders as key growth catalysts. Rotating President Sharon Liu said the company began the year with “strong results” supported by execution of its dual-core strategy and Hyperscale 2.0 framework. Total net revenues rose 19.8% year over year to RMB 2.69 billion, while adjusted EBITDA increased 30.6% to RMB 891.5 million. → Voya Financial Grows Earnings Across All 3 Business Segments Peter Zhang, senior vice president of operational finance, said wholesale revenue became the company’s largest revenue category for the first time, surpassing retail revenue during the quarter. VNET’s wholesale revenue increased 58.1% year over year to RMB 1.06 billion, which Zhang attributed mainly to activity at NOR Campus 01 and NOR Campus 02A. Retail revenue rose 5.4% to RMB 1.02 billion, while non-IDC business revenue increased 0.3% to RMB 606.6 million. → SpaceX Gets the Attention, But These 4 Stocks Could Get the Returns Liu said wholesale capacity in service rose by 18 megawatts quarter over quarter to 907 MW as of March 31. Wholesale capacity utilized by customers increased by 64 MW to 687 MW, lifting the utilization rate to 75.7%, up 5.6 percentage points from the prior quarter. She said the increase was mainly due to fast customer move-ins at NOR Campus 02A and NHB Campus 03. The company’s mature wholesale capacity utilization rate reached 93.8%. Total wholesale resource capacity stood at 2.48 gigawatts at the end of the quarter. Capacity under construction rose to 516 MW, with a year-to-date pre-commitment rate of 85.8%. VNET also reported 697 MW held for short-term future development and 359 MW held for long-term future development. → Ross Stores Earnings Beat Sends Stock To New Highs Retail IDC capacity in service increased to 50,170 cabinets from 49,863 in the previous quarter. Retail utilization remained stable at 64.1%, and monthly recurring revenue per retail cabinet increased slightly to RMB 9,448. Liu said VNET secured new orders totaling 519 MW year to date in 2026, including three wholesale orders totaling 517 MW. The company received two orders, for 110 MW and 400 MW, from an internet customer at separate data centers in the Greater Beijing area. Another data center in the Greater Beijing area won a 7 MW order from a local services customer. The company also secured approximately 2 MW of new retail orders across multiple retail data centers from customers in the local services, internet and IT services sectors. Liu said continued policy support for AI-related initiatives and demand for high-quality data center resources are creating industry tailwinds. She also said effective supply remains limited in core regions due to utility and power quota constraints, which benefits operators with existing resource reserves and project deployments. In response to a question from Morgan Stanley analyst Tom Tang, management said the roughly 500 MW of new orders are expected to be delivered over the next two to three years, from 2026 through 2028, with the first batch expected in the second half of 2026. Management said the orders should have a positive impact on EBITDA over the next three years but did not change the company’s 2026 capital expenditure guidance. VNET delivered 18 MW of capacity in the first quarter. Liu said the company’s delivery plan is weighted toward the second half of the year. VNET currently has eight data centers under construction, including seven in the Greater Beijing area and one in the Yangtze River Delta. The company plans to deliver 516 MW over the next 12 months, including about 250 MW during the second and third quarters of 2026 and about 266 MW during the fourth quarter of 2026 and first quarter of 2027. Liu said most of that capacity is allocated to the company’s Wulanchabu IDC campus to meet wholesale customer demand. Zhang said first-quarter capital expenditures were RMB 1.91 billion, with most spending directed toward wholesale IDC expansion. VNET maintained its full-year 2026 CapEx guidance of RMB 10 billion to RMB 12 billion, which Zhang said is intended to support planned delivery of 450 MW to 500 MW in 2026. Management also discussed the company’s asset monetization efforts. Zhang said two private REIT projects were listed on the Shanghai Stock Exchange in March, with a combined offering size of approximately RMB 6.36 billion and an enterprise value-to-EBITDA multiple of about 13 times to 14 times. He said VNET expects to realize at least RMB 2 billion in total cash proceeds from REIT-related initiatives this fiscal year. VNET reported RMB 173.7 million in net operating cash inflow for the quarter. Excluding RMB 119.1 million in income tax related to capital transactions and other one-time items, Zhang said net operating cash inflow would have been RMB 292.8 million. As of March 31, VNET had RMB 8.8 billion in total cash and cash equivalents, restricted cash and short-term investments. Zhang said the company’s net debt to adjusted last-quarter annualized EBITDA ratio was 3.8, while total debt to adjusted last-quarter annualized EBITDA was 6.1. Adjusted trailing 12-month EBITDA to interest coverage was 5.8. The company reaffirmed its full-year 2026 outlook. VNET expects: Total net revenues of RMB 11.5 billion to RMB 11.8 billion, representing year-over-year growth of 15.6% to 18.6%. Adjusted EBITDA of RMB 3.55 billion to RMB 3.75 billion, representing year-over-year growth of 19.2% to 25.9%. Liu said affiliates of CATL have entered into a share purchase agreement to acquire up to approximately 38.1% of VNET’s shares from subsidiaries of Shandong Hi-Speed Holdings Group, with closing expected in the fourth quarter of this year. She said the company sees potential strategic synergies with CATL in technological innovation, supply chain and next-generation AI data center development. During the Q&A session, management said potential areas of collaboration include AIDC energy storage, supply chain resources and high-voltage direct current technology. Management also said VNET will continue to pursue green and low-carbon data center development and evaluate cooperation opportunities with Shandong Hi-Speed Holdings Group. On pricing, management said demand for premium AIDC resources has remained strong through the first quarter and into the second quarter. Customers are signing long-term contracts to secure resources, and management said it expects prices to remain stable, with the possibility of upward movement if supply-demand dynamics improve. Management said VNET is actively exploring additional resources in Inner Mongolia, the Yangtze River Delta and key East Data, West Compute hubs, with a goal of acquiring gigawatt-level resources. The company also said it is evaluating overseas resources, including in Southeast Asia and other regions, in response to inquiries from key customers. VNET also said it has been exploring the feasibility of a potential Hong Kong listing as part of efforts to optimize its capital structure, support long-term strategic development and broaden its international investor base, but management said any related plans remain under evaluation. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "VNET Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Total Net Revenues: Increased by 19.8% year-over-year to RMB2.69 billion. Wholesale Revenues: Grew by 58.1% year-over-year to RMB1.06 billion. Retail Revenues: Increased by 5.4% to RMB1.02 billion. Adjusted EBITDA: Increased by 30.6% year-over-year to RMB891.5 million. Adjusted Cash Gross Margin: Improved to 45% from 43.1% in the same period last year. Adjusted EBITDA Margin: Rose to 33.1% compared with 30.4% in the same period last year. Net Operating Cash Inflow: Reached RMB173.7 million, excluding certain impacts would be RMB292.8 million. Cash Position: Total cash and cash equivalents, restricted cash, and short-term investments at RMB8.8 billion as of March 31, 2026. CapEx: RMB1.91 billion in the first quarter, primarily for wholesale IDC business expansion. Full Year Revenue Guidance for 2026: Expected to be in the range of RMB11.5 billion to RMB11.8 billion. Full Year Adjusted EBITDA Guidance for 2026: Expected to be in the range of RMB3.55 billion to RMB3.75 billion. Warning! GuruFocus has detected 7 Warning Signs with VNET. Is VNET fairly valued? Test your thesis with our free DCF calculator. Release Date: May 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. VNET Group Inc (NASDAQ:VNET) reported a 19.8% year-over-year increase in total net revenues for the first quarter, reaching RMB2.69 billion. The wholesale IDC business showed robust growth, with revenues increasing by 58.1% year-over-year to RMB1.06 billion. Adjusted EBITDA for the first quarter rose by 30.6% year-over-year to RMB891.5 million, driven by strong wholesale IDC business growth. VNET secured significant new orders totaling 519 megawatts year-to-date 2026, indicating strong demand and market share gains. The company maintained a strong liquidity position with total cash and cash equivalents, restricted cash, and short-term investments reaching RMB8.8 billion as of March 31, 2026. The retail IDC business showed slower growth compared to wholesale, with retail revenues increasing by only 5.4% year-over-year. The utilization rate for retail IDC business remained stable at 64.1%, indicating potential underutilization. The effective supply of high-quality data centers is limited due to utility and power quotas in core regions, which could constrain growth. VNET's CapEx for the first quarter was RMB1.91 billion, indicating high capital expenditure requirements for expansion. The company faces risks and uncertainties related to forward-looking statements, which could impact future performance. Q: Tom Tang from Morgan Stanley asked about the delivery pattern of the new 500-megawatt order and its impact on revenue and EBITDA, as well as potential changes to CapEx guidance. A: Sharon Liu, Executive Vice President, Rotating President, responded that the 500-megawatt order will be delivered over the next two to three years, starting in the second half of 2026. This will positively impact EBITDA over the next three years. The CapEx guidance for 2026 remains unchanged as it aligns with the annual delivery target of 450 to 500 megawatts. Q: Edison Lee from Jefferies inquired about the synergies with CATL as a strategic investor and the impact on green power initiatives with Shandong Hi-Speed. He also asked about pricing trends in the market. A: Sharon Liu explained that synergies with CATL include leveraging their supply chain and energy storage capabilities to enhance data center power stability. The collaboration with Shandong Hi-Speed on green energy continues positively. Regarding pricing, strong demand for premium AIDC resources is expected to keep prices stable, with potential for upward trends as supply-demand dynamics improve. Q: Timothy Zhao from Goldman Sachs asked about the company's targets for wholesale capacity reserves and the proportion of capacity with government power quota approvals. A: Sharon Liu stated that VNET plans to acquire gigawatt-level resources in Inner Mongolia, the Yangtze River Delta, and key nodes along the Eastern Data, Western Computing route. The company is confident in acquiring more resources, with several projects already approved by the government. Q: Mingran Li from CICC inquired about the impact of CATL's strategic investment on VNET's overseas expansion strategy. A: Sharon Liu mentioned that VNET maintains close relationships with key clients and is actively exploring overseas resources, particularly in Southeast Asia. CATL's global presence and capabilities in supply chain and green energy will complement VNET's overseas business efforts. Q: Daley Li from BofA Securities asked about financing channels for CapEx and future REIT projects. A: Peter Zhang, Senior Vice President of Operational Finance, explained that VNET has diversified financing channels, including project-level and traditional financing, to support its delivery targets. The company successfully issued two asset-backed securities in the first quarter and continues efforts in this area. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

KANZHUN LIMITED Sponsored ADR (BZ) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +8.00%. A quarter ago, it was expected that this company would post earnings of $0.3 per share when it actually produced earnings of $0.27, delivering a surprise of -10%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Kanzhun, which belongs to the Zacks Internet - Software industry, posted revenues of $299.91 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.81%. This compares to year-ago revenues of $265.03 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kanzhun shares have lost about 30.8% since the beginning of the year versus the S&P 500's gain of 7.4%. While Kanzhun has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kanzhun was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.32 on $361.97 million in revenues for the coming quarter and $1.23 on $1.33 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, VNET Group (VNET), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 26. This provider of carrier-neutral internet data center services is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VNET Group's revenues are expected to be $389.9 million, up 26% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KANZHUN LIMITED Sponsored ADR (BZ) : Free Stock Analysis Report VNET Group, Inc. - Unsponsored ADR (VNET) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research