Key Highlights

● Second-quarter net revenue rose 6.5% to RMB3,088.0 million.

● Area in service reached 684,977 square metres, up 10.8%, at 79.2% utilisation.

● 2026 revenue guidance rose to RMB12.7 billion to RMB13.0 billion.

● Capital expenditure is now expected at about RMB10.0 billion, up from RMB9.0 billion.

Latest verified development

GDS Holdings Limited (NASDAQ:GDS), the China-based data-centre operator, last reported results on 13 August 2026 and raised its full-year guidance. Its American depositary shares trade on Nasdaq, and its ordinary shares are also listed in Hong Kong. The company reports in renminbi and converts amounts into US dollars for convenience.

Second-quarter results

Net revenue was RMB3,088.0 million (US$455.1 million), up 6.5% year on year. Adjusted EBITDA was RMB1,406.0 million, up 2.5%, with the margin slipping to 45.5% from 47.3%. Net income was RMB837.6 million, against a net loss of RMB70.6 million a year earlier.

That swing owes much to a non-operating item. The company recorded an equity-method gain of RMB959.9 million from the dilution of its stake in DayOne, its international affiliate. Income tax also rose to RMB213.5 million, which the company linked to an intra-group transfer ahead of a potential second asset injection into a Chinese real estate investment trust (C-REIT). The headline profit is largely non-recurring.

Stripping out that gain, the operating picture is steadier but unspectacular: mid-single-digit revenue growth, a slightly lower EBITDA margin and a higher tax charge. A C-REIT is a listed vehicle that holds infrastructure assets in China; moving stabilised data centres into one can release capital that is then recycled into new construction.

Capacity, demand and guidance

Area in service reached 684,977 square metres, up 10.8%, with 170,355 square metres under construction. Utilised area was 542,236 square metres, a 79.2% utilisation rate. Gross additions of area in the quarter were 64,750 square metres and net additions were 59,317 square metres. Committed or pre-committed area was 784,802 square metres, up 18.2%, and management said it was on track for a record year of sales commitments.

GDS now expects 2026 revenue of RMB12.7 billion to RMB13.0 billion, previously RMB12.4 billion to RMB12.9 billion, and adjusted EBITDA of RMB5.9 billion to RMB6.1 billion, up from RMB5.75 billion to RMB6.0 billion. Capital expenditure is now expected at about RMB10.0 billion, up from about RMB9.0 billion.

Balance sheet

Cash was RMB14,927.3 million at 30 June 2026, against total debt of about RMB46.1 billion. A higher capex plan therefore leans on continued access to funding.

Debt less cash is roughly RMB31.2 billion, and gross debt is about 7.7 times the midpoint of the 2026 adjusted EBITDA guidance. These are calculations from reported figures, not company-stated ratios.

Commitments, margin and the C-REIT step

Lease-up drives revenue, so the conversion of 784,802 square metres of committed or pre-committed area into delivered capacity is the first test of the raised guidance. Margin is the second: adjusted EBITDA margin fell to 45.5% from 47.3% even as revenue grew.

The third is any further step in the C-REIT asset injection that the tax line pointed to, which the company has described only as potential. With capex now about RMB10.0 billion against RMB14.9 billion of cash and RMB46.1 billion of debt, that recycling of capital matters to how the build-out is funded.