GDS Holdings Limited (NASDAQ:GDS) reported fourth-quarter results that fell short of revenue forecasts, sending the company’s shares down about 2% even as earnings exceeded analyst estimates.
The Chinese data center operator recorded quarterly revenue of RMB2.88 billion, below the analyst consensus estimate of RMB2.94 billion. At the same time, the company posted adjusted earnings per share of RMB0.40, well above the expected loss of -RMB0.26 per share. Revenue still increased 8.6% year over year from RMB2.69 billion in the fourth quarter of 2024.
Despite the earnings beat, investors reacted to the revenue shortfall, pushing the stock lower following the announcement. Adjusted EBITDA rose 5.2% year over year to RMB1.37 billion, while the adjusted EBITDA margin narrowed to 46.7% from 48.2% a year earlier, mainly due to higher utility expenses.
“We concluded 2025 on a strong note, delivering solid financial and operational results that underscore our disciplined execution and strategic focus,” said William Huang, Chairman and Chief Executive Officer. “During the year of 2025, we achieved the highest level of gross new bookings and gross move-in for the past five years.”
For the full year 2026, GDS expects revenue to range between RMB12.40 billion and RMB12.90 billion, representing year-over-year growth of roughly 8.5% to 12.8%. The midpoint of RMB12.65 billion compares with the company’s 2025 revenue of RMB11.43 billion. Adjusted EBITDA for 2026 is projected between RMB5.75 billion and RMB6.00 billion, implying growth of approximately 6.4% to 11.0%.
Operational metrics also improved during the period. Utilized data center area increased 11.4% year over year to 504,843 square meters, while the utilization rate rose to 75.5% from 73.8% in the same period last year.