China's VNET Group Q1 revenue rises 19.8%, net loss widens

VNET

26/05/2026 09:42

Overview

China data center operator's Q1 revenue rose 19.8% yr/yr, driven by wholesale IDC growth

Adjusted EBITDA for Q1 increased 30.6% yr/yr to RMB891.5 mln

Net loss widened yr/yr due to capital transactions-related income tax expenses

Outlook

VNET expects 2026 net revenues between RMB11.5 bln and RMB11.8 bln

Company sees 2026 adj EBITDA at RMB3,550 mln to RMB3,750 mln

VNET expects 2026 capital expenditure of RMB10 bln to RMB12 bln

Result Drivers

WHOLESALE IDC GROWTH - Q1 revenue growth was mainly driven by a 58.1% yr/yr increase in wholesale IDC revenues, supported by new orders and higher capacity utilization

CAPACITY EXPANSION - Sequential increase in capacity utilized, especially at N-OR Campus 02A and N-HB Campus 03 data centers, contributed to higher utilization rates

INCOME TAX EXPENSES - Company attributed wider yr/yr net loss to RMB486.2 million capital transactions-related income tax expenses incurred in Q1 2026

Company press release: ID:nPn2h5J2ba

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
RMB 2.69 bln
Q1 EPS
-RMB 1.36
Q1 Net Income
-RMB 531.80 mln
Q1 Adjusted EBITDA
RMB 891.50 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for VNET Group Inc is $15.50, about 62.5% above its May 22 closing price of $9.54

The stock recently traded at 156 times the next 12-month earnings vs. a P/E of 170 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)