GDS Holdings Limited (GDS) reported strong first-quarter 2026 results, driven by continued data-centre ramp-up and an unprecedented wave of AI infrastructure demand.
Financial performance • Net revenue rose 23.60 % year-on-year to RMB 3.37 billion. Excluding one-off items, revenue reached RMB 2.94 billion, up 7.90 %. • Net income surged 247.10 % to RMB 2.65 billion, lifting net margin to 78.80 % (Q1 2025: 28.10 %). • Adjusted EBITDA increased 47.20 % to RMB 1.95 billion; on a comparable basis, RMB 1.43 billion represented 8.00 % growth. Adjusted EBITDA margin expanded to 57.90 %, or 48.70 % excluding one-offs. • Gross profit reached RMB 1.13 billion; adjusted gross profit excluding non-cash items was RMB 1.95 billion, a 34.10 % increase.
Operational metrics • Total committed and pre-committed area climbed 11.70 % year-on-year to 725,485 sqm; net new commitments were 55,379 sqm, equivalent to roughly 200 MW—the highest quarterly intake in the company’s history. • Area utilised expanded 12.70 % to 520,929 sqm, lifting the utilisation rate to 77.30 % (Q1 2025: 75.70 %). • Area in service reached 674,269 sqm, up 10.40 %. • Pre-commitment on projects under construction improved to 84.40 % from 71.60 % a year earlier.
Liquidity and capital structure • Cash and cash equivalents stood at RMB 14.82 billion at 31 March 2026. • Short-term debt totalled RMB 9.37 billion and long-term debt RMB 36.53 billion. • During the quarter GDS secured RMB 460.00 million of new or refinanced debt facilities. • A US $385 million partial sale of DayOne Data Centers shares and a US $300 million private placement of Series B convertible preferred shares strengthened balance-sheet flexibility.
Guidance maintained Management reaffirmed full-year 2026 targets: revenue of RMB 12.40 – 12.90 billion, adjusted EBITDA of RMB 5.75 – 6.00 billion, and capital expenditure of about RMB 9.00 billion.
Management commentary Chairman and CEO William Huang highlighted a record quarter for bookings amid intensifying AI-led demand, while CFO Dan Newman emphasised enhanced financial flexibility following the DayOne stake sale and preferred-share issuance.
The unaudited results cover the three months ended 31 March 2026 and all figures are presented in Renminbi unless otherwise stated.