VNET Group, Inc.
- Open
- 8.31
- Day high
- 9.12
- Day low
- 8.11
- Prev close
- 8.04
- Volume
- 6.6M
- Mkt cap
- $2.6B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 4.1
- P/S
- 1.7
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$118K over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
VNET Group, Inc. (VNET) is a Technology company listed on NASDAQ. The stock is up 22% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4).
VNET Group, Inc. (VNET) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
VNET earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 26, 2026 | $-0.03 | $-1.20 | -3382.3% | $390M | +0.4% |
| Mar 16, 2026 | $0.01 | $0.14 | +2306.4% | $379M | -1.6% |
| Nov 20, 2025 | $0.02 | $0.02 | +0.0% | $363M | -1.6% |
| Aug 21, 2025 | $0.02 | $-0.01 | -150.0% | $339M | +2.9% |
| May 28, 2025 | $-0.01 | $-0.12 | -1100.0% | $308M | -2.0% |
| Mar 12, 2025 | $0.03 | $-0.01 | -133.3% | $308M | +7.8% |
| Nov 20, 2024 | $0.03 | $0.06 | +100.0% | $302M | +9.6% |
| May 29, 2024 | $-0.02 | $-0.12 | -414.4% | $262M | -0.2% |
| Nov 15, 2023 | $-0.13 | $-0.06 | +53.8% | $258M | -10.6% |
| Aug 23, 2023 | $-0.06 | $-0.24 | -298.4% | $251M | -5.1% |
| May 24, 2023 | $0.02 | $0.06 | +166.0% | $263M | -1.6% |
| Mar 21, 2023 | $0.48 | $-0.06 | -112.5% | $275M | -7.0% |
VNET insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 3, 2026 | Shao Seandirector | Sell | 60,000 | $1.71 |
| May 19, 2026 | ZHANG ZHIHUAofficer: SVP, Operational Finance | Option | 42,996 | — |
| May 19, 2026 | ZHANG ZHIHUAofficer: SVP, Operational Finance | Sell | 9,072 | $1.69 |
| May 19, 2026 | ZHANG ZHIHUAofficer: SVP, Operational Finance | Grant | 42,996 | — |
| May 15, 2026 | TAI KENNETHdirector | Grant | 243,768 | — |
| May 15, 2026 | Shao Seandirector | Grant | 243,768 | — |
| May 15, 2026 | UENO Yoshihisadirector | Grant | 731,304 | — |
| Mar 25, 2026 | Chen David Lifengdirector | Sell | 83,544 | $1.51 |
Source: VNET SEC Form 4 filings, latest Jun 3, 2026. For informational purposes only — not investment advice.
See the full VNET insider & 13F page →VNET Group, Inc. company profile
Overview
VNET Group, Inc. (NASDAQ:VNET) is a leading data center services provider in China, founded in 1999 and headquartered in Beijing. Originally established as 21Vianet Group, Inc., the company rebranded to VNET Group in October 2021. VNET has evolved from a traditional hosting services provider into one of China's largest independent data center operators, capitalizing on the country's rapid digital transformation and growing demand for cloud computing infrastructure. The company went public on NASDAQ in April 2011 and has since expanded its operations to manage over 100 data centers across China, serving a diverse customer base ranging from internet giants and cloud service providers to enterprises and government agencies.
Business
VNET operates in the data center services industry, which forms the critical infrastructure backbone for China's digital economy. The company provides the physical facilities, power, cooling, and connectivity that enable businesses to house their IT equipment and run digital services. VNET's business is organized around two primary segments that together generated RMB 8.26 billion in revenue for 2024: 1. Wholesale IDC (Internet Data Center) Business (~27% of revenue): This segment provides large-scale data center capacity measured in megawatts to major customers like cloud service providers, internet companies, and hyperscalers. VNET builds and operates massive data centers that can house thousands of servers for single customers. In 2024, this segment generated RMB 2.25 billion in revenue with 125% year-over-year growth, driven primarily by AI computing demand. The company currently operates 486 megawatts of wholesale capacity with 78% utilization. 2. Retail IDC Business (~73% of revenue): This segment offers smaller-scale colocation services measured in individual server cabinets to mid-sized enterprises, financial institutions, gaming companies, and other businesses. Customers lease partial or entire cabinets to house their servers, along with related services like server management, security, and connectivity. This more mature segment generated RMB 964.8 million in stable revenue, managing over 52,000 cabinets with 63.7% utilization and monthly recurring revenue of RMB 8,898 per cabinet. The company also provides value-added services including cloud services, managed hosting, interconnectivity services, disaster recovery, and increasingly, specialized AI computing infrastructure. VNET's data centers are strategically located in key economic regions including Greater Beijing, Yangtze River Delta, and other major metropolitan areas where data sovereignty and low latency are critical for Chinese businesses.
Revenue model
VNET generates revenue primarily through recurring rental and service fees from customers who lease data center space and related services. The business model is similar to commercial real estate, but for digital infrastructure. In the wholesale segment, VNET signs long-term contracts (typically 3-10 years) with large customers who lease entire data center facilities or significant portions measured in megawatts of IT power capacity. These customers pay monthly fees based on the amount of power capacity and space they consume. Wholesale contracts often include power, cooling, security, and basic connectivity services. The retail segment operates on a colocation model where customers lease individual server cabinets or partial cabinets on shorter-term contracts. Revenue comes from monthly recurring fees per cabinet, plus additional charges for value-added services like managed hosting, cloud services, interconnectivity, and technical support. The retail model generates higher margins per unit of capacity but requires more customer acquisition and service delivery overhead. Several factors influence VNET's profitability margins. Positive margin drivers include: increasing demand for AI computing infrastructure which commands premium pricing; government policies supporting digital transformation; supply constraints in key markets like Beijing creating pricing power; operational leverage as facilities reach higher utilization rates; and the shift toward higher-margin wholesale business. Negative margin pressures include: rising electricity costs which represent a significant portion of operating expenses; increasing competition from other data center providers; regulatory restrictions on new data center construction in tier-1 cities; high capital intensity requiring continuous investment in new facilities; and customer concentration risk from dependence on large internet and cloud companies. The company's revenue is highly recurring in nature, with customer churn rates below 1% annually, providing predictable cash flows once facilities are operational and leased.
Competitive moat
VNET possesses a moderate but strengthening competitive moat built primarily around regulatory barriers, strategic location advantages, and customer switching costs, though the moat faces meaningful competitive pressures. The company's strongest defensive characteristic is its regulatory and location advantages. Chinese data sovereignty requirements and government restrictions on new data center construction in key tier-1 cities like Beijing create significant barriers to entry. VNET's existing data centers in these restricted locations become increasingly valuable as supply constraints tighten. The company operates in a regulated industry where new capacity requires government approvals, environmental assessments, and compliance with energy efficiency standards. Customer switching costs provide additional protection, particularly in the retail segment. Once enterprises migrate their IT infrastructure to VNET's facilities, the cost and complexity of moving to competitors creates meaningful friction. Long-term contracts in the wholesale segment (3-10 years) provide revenue stability and switching barriers. However, VNET's moat faces several challenges. The data center industry is becoming increasingly competitive with both domestic Chinese providers and international players expanding in the market. Competitive threats include established players like GDS Holdings, state-owned telecommunications companies with deep resources, and cloud hyperscalers building their own facilities. The company also faces potential disruption from edge computing trends that could reduce demand for centralized data centers. The business is highly capital-intensive, requiring continuous investment to maintain competitiveness. Unlike software companies with strong network effects, VNET's moat is primarily asset-based and geographic, making it vulnerable to well-funded competitors willing to invest in new capacity. The recent surge in AI-driven demand has attracted significant new investment in the sector, potentially eroding VNET's competitive advantages over time. Overall, VNET has a defensible but not insurmountable competitive position that relies heavily on regulatory protection and location scarcity rather than fundamental business model advantages.
Risks & safety
VNET presents moderate financial risk with concerning leverage levels but improving operational performance. • Liquidity and Solvency: Cash position of RMB 1.52 billion (Q1 2025) provides reasonable short-term liquidity. Current ratio of 1.1 indicates tight but manageable working capital. Debt-to-equity ratio of 2.84 represents high leverage that could constrain financial flexibility during downturns. • Cash Flow Profile: Operating cash flow of RMB 273 million (2024) versus negative free cash flow of RMB 426 million reflects the capital-intensive nature of the business. The company is burning cash on expansion but generating positive operating cash flow from existing facilities. • Valuation Metrics: EV/EBITDA of 35x appears expensive relative to the cyclical nature of the business. Price-to-book ratio of 1.4x suggests modest asset value protection. The stock trades at significant premium to tangible book value. • Other Considerations: High capital expenditure requirements (RMB 10-12 billion planned for 2025) may strain balance sheet. Customer concentration in internet and cloud sectors creates revenue volatility risk. Regulatory changes in China's data center policies could impact operations.
Recent development
Over the past few years, VNET has undergone a significant strategic transformation focused on capitalizing on China's artificial intelligence boom and digital infrastructure demand. The company's most notable pivot has been its aggressive expansion into AI-focused data center infrastructure. Starting in 2023, VNET began retrofitting its facilities to support high-performance computing workloads, with over 98% of wholesale capacity now capable of handling AI computing requirements. This strategic shift has paid dividends, with 90% of new wholesale orders in recent quarters being AI workload-related, driving the wholesale segment's revenue growth of 125% in 2024. VNET has also pursued large-scale capacity expansion through major campus developments. The company is developing strategic campuses in Ulanqab (Inner Mongolia), Huailai (Hebei Province), and Taicang, with plans to reach 1.2 gigawatts of IT power capacity at the Ulanqab campus alone. These facilities are designed specifically for hyperscale customers and AI computing workloads. The company has innovated in financing and asset optimization through pioneering REIT structures in China's data center market. VNET completed China's first pre-REIT transaction for data center assets with an insurance company partner for its Taicang campus, and has approval for a RMB 2 billion private REIT project, helping to recycle capital and fund expansion. Green energy integration has become another strategic focus, with VNET's Ulanqab Green Energy Project expected to generate 700 million kWh of renewable energy annually. This addresses both regulatory requirements and customer demand for sustainable data center operations. Recent quarters have also seen VNET strengthen its market position through securing major long-term contracts, including over 252 megawatts of new wholesale orders across internet, cloud computing, and autonomous driving industries, positioning the company for continued growth in China's expanding digital economy.
VNET company profile · for informational purposes only — not investment advice.
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