VNET Group Q2 2026 revenue rises 14.2% on wholesale growth

VNET Group, Inc. (NASDAQ: VNET), a China-based internet data center services provider, reported total net revenues of RMB2.78 billion ($409.5 million) for the second quarter ended June 30, 2026, up 14.2% from RMB2.43 billion in the same period of 2025, according to a company press release.

Wholesale IDC revenues rose 29.3% year-over-year to RMB1.10 billion ($162.8 million), accounting for 39.8% of total net revenues. Wholesale capacity in service grew 49.4% year-over-year to 1,007 megawatts, while capacity utilized by customers reached 744MW.

Adjusted EBITDA (non-GAAP) increased 25.4% year-over-year to RMB918.3 million ($135.3 million), with the adjusted EBITDA margin expanding to 33.0% from 30.1% in the second quarter of 2025. Adjusted net income (non-GAAP) was RMB7.4 million ($1.1 million), compared with an adjusted net loss of RMB53.6 million in the year-ago period.

On a GAAP basis, gross profit declined 7.8% to RMB505.2 million ($74.5 million), with gross margin falling to 18.2% from 22.5%, primarily due to higher depreciation costs tied to capacity expansion. Net loss attributable to VNET Group widened to RMB135.6 million ($20.0 million) from RMB11.9 million, partly driven by a RMB47.1 million loss from changes in the fair value of financial instruments.

As of June 30, 2026, cash, restricted cash, and short-term investments totaled RMB7.21 billion ($1.06 billion). Total long-term debt was RMB19.24 billion ($2.84 billion), including convertible notes of RMB4.84 billion.

VNET signed a strategic cooperation agreement with Contemporary Amperex Technology Co., Limited (CATL) on August 18, 2026, to jointly develop an integrated compute-energy ecosystem combining large-scale computing infrastructure with zero-carbon energy technologies.

For the full year 2026, the company maintained its guidance, projecting total net revenues of RMB11.5 billion to RMB11.8 billion, representing year-over-year growth of 15.6% to 18.6%, and adjusted EBITDA of RMB3.55 billion to RMB3.75 billion. Capital expenditure is expected to be between RMB10 billion and RMB12 billion.

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