GDS Holdings Ltd (ASX: GDS), operating under the stock code 09698, has released its financial results for the second quarter ended June 30, 2026. The company reported a net profit of 838 million yuan, a significant turnaround from a net loss of 70.584 million yuan in the same period last year.

Net revenue for the quarter rose 6.5% year-over-year to 3.088 billion yuan. Basic earnings per share were 0.52 yuan. Total contracted and pre-contracted area reached 784,802 square meters as of the end of the second quarter of 2026, up 18.2% from 663,959 square meters a year earlier and up 8.2% from 725,485 square meters at the end of the first quarter of 2026. Total contracted area growth for the quarter was 64,750 square meters, with a net increase of 59,317 square meters.

Where to Begin

Chairman and Chief Executive Officer Mr. Huang Wei stated: "We delivered solid financial and operational results in the second quarter of 2026, reflecting our ongoing commitment to disciplined execution. During the quarter, we accelerated the delivery of our backlog while maintaining a high level of net new orders. As things stand, we are on track to achieve record sales commitments this year, which will significantly exceed our original targets. We are very excited about the opportunities presented in the Chinese market, primarily driven by demand for artificial intelligence. We are confident in seizing these huge opportunities and scaling our business significantly."

Chief Financial Officer Mr. Dan Newman added: "In the second quarter, our revenue and adjusted EBITDA grew 6.5% and 2.5% year-over-year, respectively, with an adjusted EBITDA margin of 45.5%. As our financial position and financing capacity strengthen to support our business expansion, we will continue to focus on creating sustainable long-term value for our business partners and shareholders."