VNET Group Inc. (NASDAQ:VNET) saw its stock rise on Friday as the company revised its full-year 2025 outlook upward, citing strong first-quarter performance and momentum in client onboarding.
The Chinese data center solutions provider raised both its revenue and adjusted EBITDA targets for 2025, attributing the upgrade to quicker-than-expected client ramp-ups and gains in operational efficiency.
Qiyu Wang, Chief Financial Officer of the company, said the solid first quarter results reflect “sustained operating and financial momentum,” adding that the firm’s strategy continues to yield consistent benefits.
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Wang emphasized that the improved guidance showcases management’s confidence in the rest of the year, supported by a steady pipeline and cost discipline.
VNET Group has updated its revenue forecast for the year ending December 31, 2025, now expecting total net revenues to be between 9.15 billion Chinese yuan (~$1.28 billion) and 9.35 billion yuan (~$1.309 billion), up from its prior view of 9.10 billion yuan to 9.30 billion yuan.
That marks an expected increase of 11% to 13% compared to the prior year.
The company also projects adjusted EBITDA in the range of 2.76 billion yuan to 2.82 billion yuan, translating to growth of 14% to 16%.
In a separate release, VNET Group has announced a share repurchase program of up to $50 million worth of its American depositary shares (ADSs), reflecting confidence in the company’s growth outlook.
The buybacks may occur via open market, private deals, or block trades, depending on market conditions and regulatory guidelines.
The program will be effective upon signing an agreement with a qualified broker-dealer and may continue for up to 12 months.
VNET Group may modify, pause, or end the program at any time, and repurchased ADSs could be held as treasury shares or canceled.
Price Action: VNET shares are trading higher by 8.71% to $6.425 at last check Friday.
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