VNET Group (VNET) Q2 2026 earnings summary

Executive summary

• Achieved robust growth in Q2 2026, driven by surging AI-related demand and strong execution in wholesale IDC business, with 345–347 MW in new wholesale orders and total wholesale orders YTD reaching 862 MW.

• Wholesale capacity in service surpassed 1 GW (1,007 MW), up 49.4% year-over-year, with utilization rate at 73.9% and mature capacity utilization at 92.5%.

• Strategic initiatives advanced, including a partnership with CATL for integrated compute energy ecosystems and expansion of resource reserves domestically and overseas.

• Customer mix is diversifying, with top 20 customers contributing 59.4% of revenues and efforts to expand beyond leading internet companies to AI model and vertical industry leaders.

• Recognized for ESG leadership, including top 7% global IT services ranking and 36% renewable energy usage in 2025.

Financial highlights

• Total net revenues rose 14.2% year-over-year to RMB 2.78 billion in Q2 2026, with wholesale revenues up 29.3% to RMB 1.10–1.105 billion and retail revenues up 9.1% to RMB 1.05 billion.

• Adjusted EBITDA grew 25.4% year-over-year to RMB 918.3 million, with margin at 33.0%.

• Adjusted net income turned positive at RMB 7.4 million, reversing a loss from last year.

• Adjusted cash gross margin was 41.8%, down from 43.6% due to higher utility costs; gross profit declined 7.8% year-over-year to RMB 505 million.

• Over 90% of revenues are recurring, with a weighted average remaining lease term of 7 years.

Outlook and guidance

• Full-year 2026 net revenues expected at RMB 11.5–11.8 billion, up 15.6%–18.6% year-over-year.

• Adjusted EBITDA guidance for 2026 is RMB 3.55–3.75 billion, up 19.2%–25.9% year-over-year.

• CapEx for 2026 projected at RMB 10–12 billion, mainly for capacity expansion and new deliveries.

• Delivery plan for 2026 is 450–500 MW, up from 404 MW in 2025.