Gds Holdings Stock Earnings Reports

GDS Holdings reports strong early-2026 momentum driven by AI demand. Management says AI-driven hyperscale demand is the start of a multiyear growth cycle, with total bookings of 1.8 GW and year-to-date new bookings over 340 MW (on track to meet or exceed a 2026 sales target of at least 500 MW). GDS has secured nearly 4 GW of landbank, initiated ~400 MW (100,000 sqm) of mostly pre-committed construction in the past 15 months, and holds a backlog of ~600 MW that will become biddable over the next 6–8 quarters. Management plans to invest RMB 30–50 billion over the next three years to deliver capacity, expecting to finance most via project debt (historical ~60% project debt) with remaining funding from cash, operating cash flow, and asset monetization; cash and time deposits stand at ~RMB 19 billion. Unit development cost averages ~RMB 20,000/kW (USD ~3k per kW), down ~15% on a like-for-like basis over 3 years, with expected adjusted gross profit yield of ~10–11% for stabilized assets and an expected incremental ROE of ~20% over a 6-year cycle. Pro forma revenue and adjusted EBITDA growth (excluding one-offs and monetized assets) is ~12–13%. Net debt / annualized adj. EBITDA fell to 4.7x at quarter end and is expected to rise to 5–6x as investment steps up. Move-in cadence: 16,000 sqm added in 1Q; slightly lower in 2Q; ~20,000 sqm in 3Q/4Q; notable ramp expected in H2 2027. Management remains selective on customers/pricing and sees pricing broadly stable across markets.