VNET Group reported second quarter 2026 results that surpassed analyst revenue expectations, driven by significant expansion in its wholesale segment. The company demonstrated strong operational momentum, securing a massive 345MW wholesale order and forming a strategic energy-compute partnership with CATL. While the company reported a GAAP net loss, it achieved non-GAAP adjusted net profitability for the period.
Key Highlights
- Total net revenues increased 14.2% year-over-year to $409.5 million, fueled by AI-driven infrastructure demand.
- Wholesale IDC revenue surged 29.3% year-over-year to $162.8 million, now representing 39.8% of total revenues.
- Adjusted EBITDA grew 25.4% year-over-year to RMB918.3 million, with margins expanding to 33.0% from 30.1% in the prior year.
- Secured approximately 1.4GW of land bank capacity in the quarter, bringing total capacity to over 4GW to support multi-year growth.