GDS Holdings Ltd (NASDAQ: GDS) saw its stock price soar 5.60% in Wednesday's trading session following the release of better-than-expected second quarter 2025 financial results and the announcement of a strategic milestone. The Chinese data center operator reported a narrower loss and higher revenue than analysts had forecast, while also reaffirming its full-year guidance.

For the second quarter, GDS posted a net loss of 0.06 Chinese renminbi per share, significantly narrower than the 0.16 renminbi loss reported in the same period last year and beating analyst estimates of a 0.11 renminbi loss. Total net revenue climbed 12.4% year-over-year to 2.90 billion renminbi ($404.9 million), surpassing the consensus estimate of 2.85 billion renminbi. The company maintained its 2025 revenue guidance of 11.29 billion to 11.59 billion renminbi, in line with analyst expectations.

Adding to investor optimism, GDS announced the successful completion of its China REIT (C-REIT) initial public offering on the Shanghai Stock Exchange, which the company described as a "key strategic milestone." This new C-REIT platform is expected to provide GDS with enhanced financing flexibility, potentially supporting future growth initiatives. The combination of strong quarterly results and strategic developments appears to have fueled the significant uptick in GDS Holdings' stock price.