China's GDS Holdings Q2 revenue rises on data center ramp-up

GDS Holdings

13/08/2026 12:46

Overview
China data center operator's preliminary Q2 revenue rose 6.5% yr/yr on continued ramp-up
Company posted net income after prior-year loss, aided by dilution gain from equity investment
Adjusted EBITDA margin fell due to higher utility costs as a percentage of revenue

Outlook
GDS raises 2026 revenue guidance to RMB12.7 bln–RMB13.0 bln from RMB12.4 bln–RMB12.9 bln
Company lifts 2026 adjusted EBITDA forecast to RMB5.9 bln–RMB6.1 bln from RMB5.75 bln–RMB6.0 bln
GDS increases 2026 capex guidance to around RMB10 bln, citing strong sales and higher development activity

Result Drivers
DATA CENTER RAMP-UP - Co said revenue growth was mainly due to continued ramp-up of data centers
HIGHER UTILITY COSTS - Co said gross profit margin decline was mainly due to higher utility costs as a percentage of net revenue
DILUTION GAIN - Net income benefited from dilution gain on investment in DayOne Data Centers

Company press release: ID:nGNXbycqkW

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
RMB 3.09 bln
 
Q2 Net Income
 
RMB 837.60 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "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 Limited is $50.70, about 54.9% above its August 12 closing price of $32.74
The stock recently traded at 128 times the next 12-month earnings vs. a P/E of 825 three months ago

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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.)