Vnet Group's Q1 Revenue Hits $2.69B, Aligns with Market Forecasts

Vnet Group VNET posted first quarter revenue of 2.69 billion yuan, essentially matching analysts' consensus of 2.66 billion yuan and marking a 20% increase from the same period last year. The figures suggest steady momentum heading into the year.

The company also reported adjusted EBITDA of 891.5 million yuan, which not only rose 31% year-over-year but also beat the anticipated 881 million yuan. Gross profit climbed 25% to 1.21 billion yuan, signaling solid operational leverage amid top-line gains.

However, despite the revenue growth and EBITDA improvement, the quarter's net loss stood at 8.16 yuan per American depositary receipt. This underlines ongoing challenges the firm faces in turning a profit while investing for expansion.

Maintaining confidence, Vnet reiterated its full-year revenue guidance of 11.5 billion to 11.8 billion yuan, forecasting growth between 15.6% and 18.6%. The midpoint aligns closely with the street estimate of 11.71 billion yuan, reflecting a balanced outlook.

Adjusted EBITDA guidance also held steady, with a 2026 forecast range of 3.55 billion to 3.75 billion yuan. This translates to anticipated EBITDA growth of around 19.2% to 25.9% from 2025 figures, with analysts factoring in a midpoint near 3.65 billion yuan.

On capital spending, the company expects outlays of between 10 billion and 12 billion yuan for the year. Such investments may be key to supporting future infrastructure and service upgrades, but they also weigh on near-term earnings.

Overall, Vnet's Q1 delivered numbers broadly in line with forecasts, combining solid revenue and EBITDA growth with a continued path toward profitability at some point down the line. For now, the company appears committed to its growth plan despite posting losses this quarter.

Price action following the release saw VNET trade lower by around 3.9%, a muted reaction that could point to investor focus on the loss per ADR versus the revenue beat.