VNET Group, Inc. (NASDAQ:VNET) shares fell 5.88% in pre-market trading on Tuesday after the carrier- and cloud-neutral internet data centre services provider reported second-quarter results that fell short of analyst expectations for both earnings and revenue.
The company posted an adjusted loss per share of RMB0.06, compared with analyst expectations for adjusted earnings of RMB1.58 per share. Quarterly revenue reached RMB2.78 billion ($409.5 million), narrowly below the RMB2.8 billion consensus forecast.
Despite the miss, revenue increased 14.2% year on year from RMB2.43 billion in the second quarter of 2025.
Wholesale Data Centre Business Drives Revenue Growth
VNET’s wholesale IDC operation remained the main engine of expansion during the quarter, with revenue from the division climbing 29.3% year on year to RMB1.10 billion.
The wholesale business accounted for 39.8% of total net revenue, reflecting its growing importance within VNET’s overall operations.
Wholesale capacity in service reached 1,007MW as of June 30, 2026, representing an increase of 49.4% from the previous year. Capacity utilised by customers rose 45.5% to 744MW.
VNET also secured a 345MW wholesale order from a leading cloud service provider during the quarter, adding to its future contracted demand.
Adjusted EBITDA Rises as Margin Expands
Underlying profitability showed improvement despite the weaker-than-expected headline earnings figure.
Adjusted EBITDA increased 25.4% year on year to RMB918.3 million, while the adjusted EBITDA margin widened to 33.0% from 30.1% in the corresponding period of 2025.
VNET also recorded adjusted net income of RMB7.4 million, reversing an adjusted net loss of RMB53.6 million a year earlier.
“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 and Executive Chairperson of VNET.
VNET Maintains Full-Year Revenue Forecast
For the full 2026 financial year, VNET maintained its revenue guidance of between RMB11.5 billion and RMB11.8 billion.
The midpoint of that range, RMB11.65 billion, sits slightly below the current analyst consensus of RMB11.69 billion, contributing to the cautious investor reaction following the results.
While VNET continues to benefit from rapid wholesale IDC growth, expanding capacity and improved adjusted EBITDA margins, the earnings miss and guidance midpoint below market expectations weighed on sentiment and pushed VNET Group, Inc. (NASDAQ:VNET) shares nearly 6% lower ahead of Tuesday’s opening bell.
VNET Group stock price
