VNET Group, Inc. Sponsored ADR (VNET)
NASDAQ:VNET
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VNET Group, Inc. Sponsored ADR
(NASDAQ:VNET)
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Rating:52Neutral
Price Target:
$10.00
▲(19.90% Upside)
Action:Reiterated
Date:05/27/26
The score is held back primarily by weak financial quality—large net losses, high leverage, and negative free cash flow. Offsetting this are moderately constructive technicals and a generally positive earnings-call outlook (strong growth guidance and wholesale demand), while valuation appears reasonable based on the P/E but lacks dividend support.
Positive Factors
Wholesale revenue acceleration
A durable shift toward wholesale indicates larger, higher-value contracts and stronger product-market fit for hyperscale customers. Wholesale scale reduces unit costs, drives higher adjusted EBITDA margins and positions the company to capture sustained AI and cloud demand across China over the next several quarters.
Negative Factors
Very high leverage
Rising absolute debt and a ~4.3x debt-to-equity ratio materially constrain financial flexibility. With equity eroded and negative ROE, the balance sheet is vulnerable to refinancing stress and interest cost increases, limiting the firm's ability to self-fund growth or absorb shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Wholesale revenue acceleration
A durable shift toward wholesale indicates larger, higher-value contracts and stronger product-market fit for hyperscale customers. Wholesale scale reduces unit costs, drives higher adjusted EBITDA margins and positions the company to capture sustained AI and cloud demand across China over the next several quarters.
Read all positive factors
VNET Group, Inc. Sponsored ADR (VNET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.94B
Dividend YieldN/A
Average Volume (3M)9.52M
Price to Earnings (P/E)―
Beta (1Y)1.72
Revenue Growth22.86%
EPS Growth-1745.62%
CountryUS
Employees2,581
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-8.20
Shares Outstanding279,561,370
10 Day Avg. Volume9,284,428
30 Day Avg. Volume9,515,143
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)2.55
Price to Sales (P/S)1.64
P/FCF Ratio-2.67
Enterprise Value/Market Cap13.84
Enterprise Value/Revenue3.94
Enterprise Value/Gross Profit18.23
Enterprise Value/Ebitda16.63
Forecast
1Y Price Target
$18.40Price Target Upside120.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)-0.02
Revenue Forecast (FY)$11.72B
VNET Group, Inc. Sponsored ADR Business Overview & Revenue Model
Company Description
VNET Group, Inc., an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house custome...
How the Company Makes Money
VNET primarily makes money by selling infrastructure services to customers that need secure, reliable computing space and connectivity in China. Its key revenue streams generally include: (1) Colocation/IDC services: recurring fees for providing c...
VNET Group, Inc. Sponsored ADR Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call highlighted robust operational execution and strong wholesale-led revenue and profitability growth (notably wholesale revenues +58.1% and adjusted EBITDA +30.6%), a sizable secured resource and order pipeline, improved margins, solid liquidity and progress on asset monetization and ESG goals. Offsetting risks include heavy capital intensity (RMB 10–12 billion CapEx guidance), back‑loaded delivery that concentrates revenue recognition in H2, regulatory/power quota constraints, near-term debt maturities, and modest retail growth. On balance, the positive operational and financial momentum materially outweighs the manageable execution and capital demands.Positive Updates
Strong Top-Line Growth
Total net revenues increased 19.8% year-over-year to RMB 2.69 billion in Q1 2026, driven primarily by wholesale growth.
Negative Updates
Slower Retail Growth and Stable Retail KPIs
Retail revenues increased modestly by 5.4% year-over-year to RMB 1.02 billion. Retail utilization remained stable at 64.1% and retail MRR per cabinet only rose slightly to RMB 9,448, indicating slower momentum versus wholesale.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total net revenues increased 19.8% year-over-year to RMB 2.69 billion in Q1 2026, driven primarily by wholesale growth.
Read all positive updates
Company Guidance
VNET reiterated full‑year 2026 guidance of total net revenues of RMB 11.5–11.8 billion (up ~15.6%–18.6% YoY) and adjusted EBITDA of RMB 3.55–3.75 billion (up ~19.2%–25.9% YoY), with CapEx pegged at RMB 10–12 billion to support planned 2026 deliveries of 450–500 MW (unit CapEx ~RMB 20,000 per kW, or ~RMB 20 million per MW). Management said delivery cadence is back‑loaded—roughly ~250 MW in Q2–Q3 2026 and ~266 MW in Q4 2026–Q1 2027—with the recently won ~500 MW order to be delivered in batches across 2026–2028 beginning in H2 2026. The company also expects to realize no less than RMB 2 billion of cash proceeds from REIT/asset‑monetization initiatives this fiscal year and highlighted strong precommitment on capacity under construction (85.8%), while maintaining healthy liquidity to fund growth.VNET Group, Inc. Sponsored ADR Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.34B | 9.68B | 8.26B | 7.41B | 7.19B | 6.19B |
| Gross Profit | 2.23B | 2.13B | 1.83B | 1.29B | 1.31B | 1.44B |
| EBITDA | 2.45B | 2.70B | 2.22B | -366.56M | 1.68B | 2.27B |
| Net Income | -2.25B | -249.78M | 183.20M | -2.64B | -789.58M | 500.10M |
Balance Sheet | ||||||
| Total Assets | 49.12B | 44.62B | 32.36B | 30.35B | 26.56B | 23.07B |
| Cash, Cash Equivalents and Short-Term Investments | 8.49B | 6.56B | 2.04B | 5.45B | 2.95B | 1.70B |
| Total Debt | 29.77B | 26.93B | 18.45B | 17.51B | 14.55B | 11.32B |
| Total Liabilities | 39.12B | 35.79B | 25.16B | 23.70B | 19.68B | 15.47B |
| Stockholders Equity | 4.23B | 6.22B | 6.37B | 6.01B | 6.51B | 7.23B |
Cash Flow | ||||||
| Free Cash Flow | -5.94B | -5.95B | -3.12B | -997.15M | -450.61M | -1.35B |
| Operating Cash Flow | 1.90B | 1.92B | 2.01B | 2.06B | 2.60B | 1.39B |
| Investing Cash Flow | -6.02B | -8.01B | -4.39B | -3.91B | -3.56B | -3.77B |
| Financing Cash Flow | 2.99B | 10.22B | -627.65M | 3.94B | 2.30B | 967.58M |
VNET Group, Inc. Sponsored ADR Technical Analysis
Neutral
8.34
Price Trends
9.19
Positive
10.06
Negative
9.62
Positive
Market Momentum
0.30
Positive
48.66
Neutral
45.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VNET, the sentiment is Neutral. The current price of 8.34 is below the 20-day moving average (MA) of 10.04, below the 50-day MA of 9.19, and below the 200-day MA of 9.62, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 45.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VNET.
VNET Group, Inc. Sponsored ADR Risk Analysis
VNET Group, Inc. Sponsored ADR disclosed 85 risk factors in its most recent earnings report. VNET Group, Inc. Sponsored ADR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VNET Group, Inc. Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $51.75B | 15.11 | 31.77% | 2.58% | 4.85% | 6.19% | |
72 Outperform | $287.26B | 26.34 | 35.54% | 2.21% | 9.67% | 94.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $7.19B | 16.40 | 10.18% | ― | 9.67% | ― | |
52 Neutral | $2.94B | -8.00 | -40.29% | ― | 22.86% | -1745.62% | |
52 Neutral | $2.31B | -7.82 | -50.67% | ― | -20.34% | -8.67% | |
48 Neutral | $1.50B | 92.47 | 0.58% | ― | -1.76% | -96.67% |
* Technology Sector Average
VNET
VNET Group, Inc. Sponsored ADR
8.84
2.93
49.58%
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284.84
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34.49%
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-6.75
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9.09%
VNET Group, Inc. Sponsored ADR Corporate Events
VNET Group Posts Strong Q1 2026 as Wholesale IDC and REIT Strategy Recast Growth Profile
May 26, 2026
On May 26, 2026, VNET Group reported unaudited financial results for the first quarter ended March 31, 2026, highlighting strong growth under its dual-core strategy and Hyperscale 2.0 framework. The company secured 517MW of new wholesale orders ye...
VNET Brings In PJ Millennium as Strategic Investor in Major Share Purchase Deal
May 13, 2026
VNET Group, Inc., a major carrier- and cloud-neutral data center operator in China, provides hosting, cloud and VPN services that allow customers to colocate servers and connect directly to China’s internet backbone. With a footprint in more...
VNET Group CFO to Step Down as Company Elevates Operational Finance Leadership
Apr 20, 2026
On April 20, 2026, Beijing-based VNET Group, Inc. reported that Chief Financial Officer Qiyu Wang will resign for personal reasons effective April 30, 2026, with the company stressing that his departure is unrelated to its operations, policies, ac...
VNET Delivers Record Capacity and Beats 2025 Guidance on Surging Wholesale IDC Demand
Mar 16, 2026
On March 16, 2026, VNET reported unaudited results for the fourth quarter and full year ended December 31, 2025, showing strong top-line growth powered by wholesale internet data center demand. Total net revenues rose 19.6% year-on-year in the qua...
VNET Group Announces Resignation of Director Jianbiao Zhu
Mar 10, 2026
VNET Group, Inc., a Beijing-based foreign private issuer listed in the United States, reported a change in its board of directors in a regulatory filing for March 2026. The company operates from its principal executive offices in Chaoyang District...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.