Chinese data center services firm VNET posts higher Q3 revenue, raises FY forecast

Reuters
Nov 20
Chinese data center services firm VNET posts higher Q3 revenue, raises FY forecast

Overview

  • VNET Q3 rev rises 21.7% yr/yr to RMB2.58 bln, driven by wholesale IDC growth

  • Adjusted EBITDA for Q3 increases 27.5% yr/yr to RMB758.3 mln

  • Company raises full-year 2025 guidance for revenue and adjusted EBITDA

Outlook

  • Company increases full-year revenue guidance to RMB9,550 mln - RMB9,867 mln

  • VNET expects full-year adjusted EBITDA of RMB2,910 mln - RMB2,945 mln

  • Company sees AI-driven demand as a growth opportunity

Result Drivers

  • WHOLESALE IDC GROWTH - Co attributes 82.7% yr/yr increase in wholesale IDC revenue to rapid delivery capabilities and fast customer move-ins

  • AI DEMAND - Co says it is well-positioned to capitalize on AI-driven demand, advancing its Hyperscale 2.0 framework

  • ORDER MOMENTUM - Co reports solid order momentum with three new wholesale orders totaling 63MW and a 32MW order from the internet sector

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

RMB 2.58 bln

Q3 Net Income

-RMB 307 mln

Q3 Adjusted EBITDA

RMB 758.30 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the it services & consulting peer group is "buy"

  • Wall Street's median 12-month price target for VNET Group Inc is $13.60, about 38.8% above its November 19 closing price of $8.32

Press Release: ID:nPn18hZmwa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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