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Investing.com - VNET Group, Inc. (NASDAQ:VNET) on Thursday reported second quarter earnings that missed analyst expectations despite revenue growth, sending shares down 3.5%.
The company reported a loss of RMB0.06 per share for the second quarter, falling short of analyst estimates of RMB0.11 profit per share. Revenue came in at RMB2.43 billion ($339.8 million), exceeding the consensus estimate of RMB2.3 billion and representing a 22.1% increase YoY.
VNET’s wholesale IDC business was the primary growth driver, with revenues surging 112.5% YoY to RMB854.1 million ($119.2 million). Retail IDC revenues remained relatively stable at RMB958.7 million ($133.8 million) compared to RMB964.8 million in the same period last year.
"We delivered strong second quarter results thanks to continued effective strategic execution," said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. "Our wholesale IDC business continued to grow rapidly, driven by our wholesale data centers’ fast move-in pace."
Adjusted EBITDA increased by 27.7% YoY to RMB732.5 million ($102.2 million), with an adjusted EBITDA margin of 30.1%, up 1.3 percentage points from the year-ago period.
The company maintained its full-year 2025 guidance, expecting total revenue between RMB9.15 billion and RMB9.35 billion, representing 11-13% YoY growth. This outlook aligns with the analyst consensus of RMB9.35 billion.
VNET’s wholesale capacity in service increased significantly to 674MW as of June 30, 2025, compared with 332MW a year earlier.
The company recently unveiled its "Hyperscale 2.0" framework, which includes plans to grow data center capacity to 10GW by 2036.
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