GDS Holdings (NASDAQ:GDS) Reports Q2 Revenue Growth as AI Demand Drives Data Center Bookings

• GDS Holdings (NASDAQ:GDS) reported second-quarter 2026 revenue of $455.10 million, slightly exceeding the analyst estimate of $454.25 million.
• Demand related to artificial intelligence is supporting strong bookings and continued expansion of the company’s high-performance data center platform in China.
• GDS reported net income of RMB837.6 million, compared with a prior-year net loss, although the improvement was primarily attributable to a gain associated with its investment in DayOne.

GDS Holdings, also listed on the Hong Kong Stock Exchange under stock code 9698, is a leading developer and operator of high-performance data centers in China. The company provides data center services, including colocation, managed hosting, and related infrastructure solutions.

On August 13, 2026, GDS reported its financial results for the second quarter ended June 30, 2026. The company recorded diluted income per American depositary share (ADS) of $0.52. This was substantially higher than the stated analyst estimate of $0.01 per ADS.

GDS posted net revenue of RMB3.09 billion, or $455.10 million, compared with an analyst estimate of $454.25 million. Revenue increased 6.5% from RMB2.90 billion in the same quarter of the previous year, primarily due to the continued ramp-up of the company’s data centers.

Demand associated with artificial intelligence remained an important growth driver. GDS said it was on track to achieve a record level of sales commitments in 2026, substantially above its original target. Total committed and pre-committed area increased 18.2% year over year to 784,802 square meters, while utilized area rose 13.2% to 542,236 square meters.

GDS reported net income of RMB837.6 million, or $123.50 million, compared with a net loss of RMB70.60 million in the prior-year quarter. However, this improvement was mainly attributable to RMB959.9 million in income from equity-method investees, primarily resulting from a dilution gain on the company’s investment in DayOne following DayOne’s preferred-share issuance.

Adjusted EBITDA increased 2.5% year over year to RMB1.41 billion, while the adjusted EBITDA margin declined to 45.5% from 47.3%. The decrease in margin was mainly due to higher utility costs as a percentage of revenue.

As of June 30, 2026, GDS had RMB23.46 billion in current assets and RMB13.15 billion in current liabilities, resulting in a current ratio of approximately 1.78. While this indicates that current assets exceeded current liabilities, the ratio should be considered alongside the company’s substantial debt and capital requirements.