China's VNET prelim Q4 revenue rises on wholesale IDC strength

VNET

16/03/2026 08:41

Overview

China internet data center provider's preliminary Q4 revenue rose 19.6% yr/yr

Adjusted EBITDA for preliminary Q4 increased 11.6% yr/yr

Company posted Q4 net profit, aided by gains on subsidiary deconsolidation and fair value changes

Outlook

VNET expects 2026 net revenues of RMB11.5 bln to 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 - Q4 revenue growth was mainly driven by a 47.1% yr/yr increase in wholesale IDC business

AI-DRIVEN DEMAND - Co said strong AI-driven demand supported high-quality growth in Q4, per SVP Peter Zhihua Zhang

CAPACITY EXPANSION - Sequential wholesale capacity increase in Q4 was mainly contributed by the N-OR Campus 02A data center

Company press release: ID:nPn8xgcYMa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
RMB 2.69 bln
Q4 Adjusted EBITDA
RMB 805.10 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 $15.20, about 44.6% above its March 13 closing price of $10.51

The stock recently traded at 218 times the next 12-month earnings vs. a P/E of 213 three months ago

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(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.)