VNET Group's stock price soared 5.35% during intraday trading on Tuesday, driven by the company's release of its first quarter 2026 financial results and a significant strategic investment announcement.

The China-based data center services provider reported Q1 net revenues of RMB 2.69 billion (US$390.1 million), representing a 19.8% year-over-year increase and beating analyst estimates. The growth was primarily fueled by a 58.1% surge in wholesale IDC business revenues, which surpassed retail revenues for the first time. Adjusted EBITDA also showed strong performance, increasing 30.6% year-over-year to RMB 891.5 million.

Additionally, VNET announced that affiliates of Contemporary Amperex Technology Co., Limited (CATL) have agreed to become strategic investors, acquiring up to approximately 38.1% of the company's shares. The company maintained its full-year 2026 outlook, expecting revenue growth of 15.6% to 18.6% and adjusted EBITDA growth of 19.2% to 25.9%.