GDS Holdings is experiencing a significant deceleration in revenue growth, falling from 23.6% in Q1 2026 to 6.2% in Q2 2026, while its capital-intensive model has resulted in chronic negative free cash flow, with cumulative deficits exceeding $3.5 billion over...
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Revenue growth has decelerated sharply to 6.2% in Q2 2026, while gross margin contracted severely to 19.5% from 33.6% in the prior quarter, indicating significant cost pressures and margin compression.
GDS Holdings Limited has issued 2026 revenue guidance of RMB 12.40 billion to RMB 12.90 billion, implying an expected 8.5% to 12.8% year-on-year increase.
In February 2026, GDS closed a US$300,000,000 private placement of Series B Redeemable Convertible Preferred Shares, with participation from Chinese institutional investors and new investor Huatai Capital Investment Limited.
Huatai Capital Investment Limited's participation in the private placement could bring strategic benefits, as upon full conversion they would hold 2.7% of GDS's total shares.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 13, 2026 | $0.52+4618.7% vs $0.01 | $454M+0.1% vs $454M |
Q2 2026 May 20, 2026 | $1.53+4689.1% vs -$0.03 | $488M+11.8% vs $436M |
Q2 2026 Mar 17, 2026 | -$0.04-10.8% vs -$0.04 | $418M-0.8% vs $421M |
Q4 2025 Nov 19, 2025 | $0.45+850.0% vs -$0.06 | $405M-0.2% vs $406M |
GDS (NASDAQ: GDS - Get Free Report) and International Business Machines (NYSE: IBM - Get Free Report) are both technology companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability. Analyst Ratings This is a summary of recent
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GDS's AI-driven bookings, high pre-commitment and backlog support growth visibility, but rising utility costs and debt pressure margins.
Baron Global Opportunity Fund (the Fund) gained 26.7% (Institutional Shares) during the second quarter, compared to the 14.9% gain for the MSCI ACWI Index (the Index). During the second quarter, we initiated five new positions: Alphabet, Samsung Electronics, Cerebras, DPC Holdings and Innio. We also took advantage of stock price volatility and significant inflows into the Fund to add to many existing positions including Shopify, Nu, NVIDIA, Amazon, GDS, ASML, TSMC, MercadoLibre, Tesla, ServiceTitan, and others.
Benchmark GDS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for GDS Holdings Limited (GDS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $33.11 | $6.45B | 52.46 | 10.76% | 8.31% | 3.69% | 0.12% | |
| $6.92 | $1.93B | -51.65 | 17.18% | -22.33% | -26.38% | — | |
| $1.77 | $619.53M | -5.71 | -32.54% | -5.6% | -38.19% | — | |
| $181.45 | $67.13B | 50.68 | 10.04% | 11.67% | 3.05% | — | |
| $1037.66 | $102.39B | 75.41 | 5.85% | 15.6% | 10.75% | — | |
| $312.28 | $60.76B | 39.23 | 9.31% | 0.79% | 98.43% | — |
GDS Holdings Limited (GDS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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GDS Holdings Limited (GDS) stock FAQ — growth, dividends, profitability & financials explained
GDS Holdings Limited (GDS) reported $12.26B in revenue for fiscal year 2025. This represents a 2517% increase from $468.3M in 2014.
GDS Holdings Limited (GDS) grew revenue by 10.8% over the past year. This is steady growth.
Yes, GDS Holdings Limited (GDS) is profitable, generating $3.74B in net income for fiscal year 2025 (8.3% net margin).
Yes, GDS Holdings Limited (GDS) pays a dividend with a yield of 0.12%. This makes it attractive for income-focused investors.
GDS Holdings Limited (GDS) has a return on equity (ROE) of 3.7%. This is below average, suggesting room for improvement.
GDS Holdings Limited (GDS) had negative free cash flow of $859.5M in fiscal year 2025, likely due to heavy capital investments.
