VNET Group: 2Q26F preview

研报英文原文证据摘录

VNET Group: 2Q26F preview

Global Markets Research

VNET Group VNET.OQ VNET US 24 July 2026

EQUITY: TECHNOLOGY

Rating2Q26F preview Remains Buy

Target price

Reduced fromMaintain Buy, lower TP to USD13 USD 13.00 USD 14.10

2Q26F preview: revenue +13% y-y with EBITDA +23% y-y Closing23 July 2026price USD 7.77

We expect VNET to record 13.2% y-y revenue growth to CNY2.76bn in 2Q26F (+2.4% q-

q), including 1.2% y-y growth in retail IDC revenue, 36.4% y-y growth in wholesale IDC Implied upside +67.3%

revenue, and flat y-y for non-IDC revenue. We estimate ~60MW net addition for utilized

wholesale IT power during the quarter, largely flat q-q, which was mainly constrained by Market Cap (USD mn) 2,212.1

the ramp-up of domestic chip capacity, in our view. We expect the company to record ADT (USD mn) 66.0

23.1% y-y growth in adjusted EBITDA to CNY902mn in 2Q26F, with 2.6pp y-y expansion

in adjusted EBITDA margin to 32.7% (down 0.4pp q-q), as a result of more revenue Relative performance chart

contribution from the wholesale IDC business.

Long-term demand intact with solid backlog growth

We expect solid growth in domestic AIDC demand over 2026-28F, supported by robust AI

spending by key Chinese CSPs as well as fast development of domestic LLM players. We

believe VNET is well positioned for its strong regional footprint in Inner Mongolia, with

annual capacity delivery of 400-500GW over 2026-28F. We also expect the pricing for the

company’s wholesale IDC segment to stay stable-to-rising for 2027-28F, given the surging

demand for domestic LLMs and agentic AI applications.

Maintain Buy with lower TP of USD13

We trim our 2026-28F revenue forecasts by 1.2-2.7%, to reflect a slower-than-expected

move-in pace for CSP customers in the near term, leading to a longer revenue recognition