GDS Holdings Limited (NASDAQ:GDS) reported first-quarter results on Wednesday that came in ahead of analyst expectations, helped by record data center bookings and continued demand tied to AI infrastructure growth.
Shares of the data center operator gained 3.44% in pre-market trading following the earnings release.
Earnings and Revenue Top Forecasts
Adjusted earnings per share reached RMB1.32, well above the analyst consensus estimate of RMB0.06. Revenue totaled RMB3.37 billion, exceeding expectations of RMB3.01 billion and rising 23.6% from RMB2.72 billion in the same quarter a year earlier.
The company said its performance was fueled by record net new bookings of roughly 200MW during the quarter, representing the strongest quarterly booking level in its history.
Excluding one-time items, revenue increased 7.9% year over year to RMB2.94 billion, while adjusted EBITDA climbed 8.0% to RMB1.43 billion.
Margin Expansion and Profit Growth
Adjusted EBITDA margin edged up to 48.7% from 48.6% in the prior-year period, supported mainly by lower corporate-level costs.
“With AI infrastructure demand intensifying, we believe GDS is uniquely positioned to capture the next phase of growth,” said William Huang, Chairman and Chief Executive Officer.
Net income jumped to RMB2.65 billion from RMB764.1 million in the first quarter of 2025, primarily driven by a dilution gain related to the company’s investment in DayOne Data Centers Limited.
Capital Raising and Full-Year Outlook
During the quarter, GDS completed a $385 million partial sale of DayOne ordinary shares and also secured $300 million through a private placement of convertible preferred shares.
The company reaffirmed its full-year 2026 revenue guidance range of RMB12.4 billion to RMB12.9 billion, with a midpoint of RMB12.65 billion. GDS also maintained its adjusted EBITDA forecast of RMB5.75 billion to RMB6.0 billion and projected capital expenditures of around RMB9.0 billion.
Data Center Capacity Continues to Expand
Total area committed and pre-committed increased 11.7% year over year to 725,485 square meters, while utilized area rose 12.7% to 520,929 square meters.