China's GDS Holdings Q1 net income jumps 247% on data center ramp-up

GDS Holdings

20/05/2026 12:13

Overview

China data center operator's preliminary Q1 revenue rose 24% yr/yr, normalized growth 8%

Preliminary Q1 net income surged 247% yr/yr, driven by DayOne investment gains

Company completed partial sale of DayOne shares and raised $300 mln via preferred share placement

Outlook

GDS Holdings maintains 2026 revenue guidance of RMB12,400 mln to RMB12,900 mln

Company expects 2026 adjusted EBITDA of RMB5,750 mln to RMB6,000 mln

GDS Holdings forecasts 2026 capex of around RMB9,000 mln

Result Drivers

DATA CENTER RAMP-UP - Normalized revenue growth was mainly due to continued ramp-up of data centers

COST SAVINGS - Normalized adjusted EBITDA increase was mainly due to cost savings at the corporate level

HIGHER UTILITY COSTS - Normalized gross profit margin decreased mainly due to higher utility costs as a percentage of net revenue

Company press release: ID:nGNX3hd7zD

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
RMB 3.37 bln
Q1 Net Income
RMB 2.65 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "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 GDS Holdings Ltd is $60.00, about 48.5% above its May 19 closing price of $40.41

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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.)