Shares of VNET Group Inc. (VNET), a leading carrier-neutral internet data center services provider in China, surged by 5.86% in after-hours trading on Wednesday. The stock's rally came on the back of VNET's impressive third-quarter earnings report, where the company delivered better-than-expected financial results and raised its full-year guidance.

In the third quarter, VNET reported earnings per share of RMB0.16 ($0.06), surpassing analysts' consensus estimate of RMB0.02. The solid earnings performance was driven by robust revenue growth, with total revenue increasing by 12.4% year-over-year to RMB2.12 billion ($302.2 million), beating expectations by $23.1 million.

VNET's strong financial results were fueled by the continued expansion of its core data center and hosting services in China. The company's ability to capitalize on the growing demand for cloud computing and data center services in the region has been a key factor driving its success.

In addition to the impressive quarterly performance, VNET also raised its full-year revenue guidance for fiscal 2024. The company now expects revenue to range between RMB8 billion and RMB8.1 billion, up from its previous guidance of RMB7.8 billion to RMB8 billion. VNET also raised its adjusted EBITDA guidance to RMB2.28 billion to RMB2.3 billion, representing year-over-year growth of 11.8% to 12.8%.