VNET Group (VNET) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results, driven by dual-core strategy and Hyperscale 2.0 framework, with wholesale IDC business securing 519MW of new orders year-to-date, including 510MW from a major internet customer in Beijing.

• Welcomed CATL as a new strategic investor, expecting synergies in technology, supply chain, and green energy, and advancing green data center clusters and asset monetization via two REIT listings.

• Maintained high customer retention and diversification, with recurring revenues above 90% since IPO.

Financial highlights

• Total net revenues rose 19.8% year-over-year to RMB2.69 billion in Q1 2026.

• Wholesale IDC revenues increased 58.1% year-over-year to RMB1.06 billion, surpassing retail revenues for the first time.

• Retail revenues grew 5.4% year-over-year to RMB1.02 billion.

• Adjusted EBITDA increased 30.6% year-over-year to RMB891.5 million, with margin improving to 33.1%.

• Adjusted cash gross profit rose 25.1% year-over-year to RMB1.21 billion, with adjusted cash gross margin at 45.0%.

• Net loss attributable to shareholders widened to RMB531.8 million, mainly due to RMB486.2 million in capital transactions-related tax expenses.

Outlook and guidance

• 2026 total net revenues expected at RMB11.5–11.8 billion, up 15.6%–18.6% year-over-year.

• Adjusted EBITDA guidance for 2026 is RMB3.55–3.75 billion, up 19.2%–25.9% year-over-year.

• CapEx for 2026 expected at RMB10–12 billion, supporting 450–500 MW delivery.

• No change to CapEx guidance despite large new orders; delivery of 500 MW order to span 2026–2028.