GDS (GDS) Q2 2026 earnings summary

Executive summary

• Achieved record sales momentum with 260 MW of new bookings in Q2 and 470 MW for H1 2026, raising the full-year sales target to 1 GW, all under binding take-or-pay commitments.

• Net additional customer commitments reached 59,317 sqm (254 MW) in Q2 2026, with total area committed up 18.2% year-over-year to 784,802 sqm (2,047 MW).

• Net revenue rose 6.5% year-over-year to RMB 3,088.0 million in Q2 2026, driven by continued data center ramp-up.

• Net income reached RMB 837.6 million, reversing a net loss of RMB 70.6 million in Q2 2025.

• Diversified new business wins across established and new markets, including significant contracts with the three largest hyperscale customers and emerging AI leaders.

Financial highlights

• Backlog increased from 450 MW at the start of 2026 to 757 MW by mid-year, with an estimated RMB 2.2 million adjusted EBITDA per MW from this backlog.

• Adjusted EBITDA increased 2.5% year-over-year to RMB 1,406.0 million, with a margin of 45.5%.

• Adjusted gross profit margin declined to 48.5% in Q2 2026 from 52.0% in Q2 2025.

• Net move-in for H1 2026 was 145 MW, with a full-year forecast of 235 MW; move-in expected to more than double in 2027.

• Booked but not billed adjusted EBITDA stands at around RMB 1.6 billion; year-end backlog expected to exceed 1 GW if sales targets are met.

Outlook and guidance

• Full-year 2026 revenue guidance raised to RMB 12,700–13,000 million, up 11.1–13.7% year-over-year.

• Adjusted EBITDA guidance for FY26 is RMB 5,900–6,100 million, up 9.2–12.9% year-over-year.

• CapEx guidance raised from RMB 9 billion to RMB 10 billion, with most spending in H2 2026; new investments to be financed with 60% debt and 40% equity.

• Move-in for 2027 forecasted to more than double 2026 levels, heavily weighted to H2 2027, supporting significant EBITDA growth into 2028.

• Guidance does not include potential impact from further asset monetization.