Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 18, 2026 · Beat 1 of last 6 quarters
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VNET's record order wins and capacity expansion underscore the accelerating AI infrastructure buildout in China, with hyperscale customers pre-committing capacity years in advance. The company's strategic land banking and CATL partnership signal a shift toward integrated compute-energy infrastructure, which could become a template for future AI data center development. The structural supply-demand imbalance in high-power capacity suggests sustained pricing power for operators with secured resources.
VNET reported Q2 2026 revenue of RMB 2.78B, up 14.2% YoY, driven by wholesale IDC growth of 29.3% to RMB 1.10B. Adjusted EBITDA rose 25.4% to RMB 918.3M, with margin expanding to 33.0%. The company secured 345 MW of new wholesale orders in the quarter, bringing year-to-date orders to 862 MW, and total orders plus reservations to over 1.2 GW. Wholesale capacity in service surpassed 1 GW, with utilization at 73.9%, and the company added ~1.5 GW of new resources, including a 500 MW overseas land bank. Adjusted net income turned positive at RMB 7.4M.
Management reiterated full-year 2026 guidance of RMB 11.5B–11.8B revenue (15.6%–18.6% YoY) and RMB 3.55B–3.75B adjusted EBITDA (19.2%–25.9% YoY), citing sustained wholesale demand and operational efficiency gains. They plan to deliver 585 MW over the next 12 months (333 MW in H2 2026, 252 MW in H1 2027), with the majority from the Wulanchabu campus. The company expects faster customer move-ins in H2 2026 as domestic chip production ramps. They will lay out a future operating strategy and outlook in Q4 2026, and maintain a prudent approach to overseas development, only starting construction after securing firm orders. The CATL partnership is expected to strengthen competitiveness and drive next-generation compute-energy integration.
“Customers are not only accelerating their near-term capacity deployments, but are also beginning to secure capacity in advance under reservation agreements to support their medium- to long-term expansion plans.”
on Demand durability
“We are now in a period where the domestic produced chips are quickly ramping up in terms of the production. The production capacity has been fairly clear for the second half of 2026, and we are going to see a release of this production capacity. That will definitely push our move-in pace higher.”
on Move-in pace
“We need to get the orders first before we develop these resources.”
on Overseas development
Could you give us an update on the overall supply and demand situation in key regions and any updated outlook for pricing dynamics?
Demand is trending up driven by AI training and inferencing, with gigawatt-level tenders expected in 2026. Supply is constrained by power and chip supply chains, creating a structural imbalance expected to persist until ~2028. Pricing for new projects will factor in peer rates, construction costs, resource scarcity, and target returns.
Can you share color on the move-in pace in Q2 and quarter-to-date, and your CapEx outlook into next year, including overseas delivery timeline and unit economics?
Move-in pace was steady in Q2 and expected to be faster in H2 as domestic chip production ramps. CapEx is tied to demand and deliveries; full-year 2026 CapEx remains RMB 10–12B. Overseas development will be prudent, with only land acquisition funded initially and M&E fit-out starting only after firm orders are secured.
The Q2 new bookings are strong but concentrated in one customer. How should we think about customer mix going forward?
While the 862 MW year-to-date includes a 510 MW order from a leading Internet company and a 345 MW order from another leading computing enterprise, we are actively expanding to AI model companies, high-growth AI firms, and vertical leaders to diversify the wholesale customer base.