Revenue growth remains highly sensitive to project cycles, evidenced by the 22.9% growth in 2026Q1, while gross margins have improved to 32.1% from the 16.9% low recorded in 2023Q4.
| Sales/Revenue | 12.02B | 11.12B | 10.32B | 9.96B | 9.33B | 7.82B | 5.74B | 4.12B | 2.79B | 1.62B | 1.06B | 703.64M | 468.34M |
| Revenue Growth % | 7.22% | 7.74% | 3.67% | 6.76% | 19.27% | 36.24% | 39.21% | 47.65% | 72.76% | 53.05% | 50.07% | 50.24% | - |
| Cost of Goods Sold | 9.07B | 8.85B | 8.1B | 8.03B | 7.39B | 6.04B | 4.19B | 3.08B | 2.17B | 1.21B | 790.29M | 515M | 388.17M |
| COGS % of Revenue | - | 79.55% | 78.47% | 80.69% | 79.24% | 77.24% | 72.98% | 74.71% | 77.71% | 74.73% | 74.84% | 73.19% | 82.88% |
| Gross Profit | 2.95B | 2.27B | 2.22B | 1.92B | 1.94B | 1.78B | 1.55B | 1.04B | 622.44M | 408.47M | 265.67M | 188.64M | 80.17M |
| Gross Margin % | 24.55% | 20.45% | 21.53% | 19.31% | 20.76% | 22.76% | 27.02% | 25.29% | 22.29% | 25.27% | 25.16% | 26.81% | 17.12% |
| Gross Profit Growth % | - | 2.33% | 15.61% | -0.69% | 8.79% | 14.77% | 48.69% | 67.52% | 52.38% | 53.75% | 40.84% | 135.31% | - |
| Operating Expenses | 911.97M | 809.92M | 1.07B | 4.38B | 1.37B | 1.21B | 877.51M | 562.95M | 454.09M | 326.24M | 308.05M | 185.94M | 150.99M |
| OpEx % of Revenue | - | 7.28% | 10.37% | 44% | 14.7% | 15.47% | 15.29% | 13.66% | 16.26% | 20.19% | 29.17% | 26.43% | 32.24% |
| Selling, General & Admin | 877.76M | 778.11M | 1.03B | 1.33B | 1.34B | 1.17B | 837.46M | 541.32M | 440.17M | 318.98M | 298.95M | 186.3M | 154.27M |
| SG&A % of Revenue | - | 7% | 10.02% | 13.35% | 14.32% | 14.97% | 14.59% | 13.13% | 15.77% | 19.74% | 28.31% | 26.48% | 32.94% |
| Research & Development | 34.21M | 31.81M | 36.32M | 38.16M | 35.81M | 39.34M | 40.05M | 21.63M | 13.91M | 7.26M | 9.1M | 3.55M | 1.6M |
| R&D % of Revenue | - | 0.29% | 0.35% | 0.38% | 0.38% | 0.5% | 0.7% | 0.52% | 0.5% | 0.45% | 0.86% | 0.51% | 0.34% |
| Other Operating Expenses | 7 | 0 | 0 | 3.01B | 0 | 0 | 0 | 0 | 0 | 0 | 2.5M | 1.17M | -412K |
| Operating Income | 2.04B | 1.46B | 1.15B | -2.46B | 551.78M | 569.52M | 672.94M | 479.78M | 168.35M | 82.23M | -42.37M | -1.22M | -75.7M |
| Operating Margin % | 16.96% | 13.17% | 11.16% | -24.69% | 5.92% | 7.28% | 11.73% | 11.64% | 6.03% | 5.09% | -4.01% | -0.17% | -16.16% |
| Operating Income Growth % | - | 27.12% | 146.85% | -545.6% | -3.12% | -15.37% | 40.26% | 184.98% | 104.74% | 294.06% | -3381.84% | 98.39% | - |
| EBITDA | 5.46B | 4.83B | 4.51B | 1.17B | 3.84B | 3.23B | 2.33B | 1.62B | 909.86M | 460.36M | 184.98M | 144.19M | 7.05M |
| EBITDA Margin % | 45.42% | 43.43% | 43.65% | 11.74% | 41.21% | 41.27% | 40.63% | 39.34% | 32.59% | 28.48% | 17.52% | 20.49% | 1.51% |
| EBITDA Growth % | 17.33% | 7.2% | 285.29% | -69.57% | 19.09% | 38.38% | 43.78% | 78.25% | 97.64% | 148.87% | 28.29% | 1943.78% | - |
| D&A (Non-Cash Add-back) | 3.42B | 3.37B | 3.35B | 3.63B | 3.29B | 2.66B | 1.66B | 1.14B | 741.51M | 378.13M | 227.35M | 145.41M | 82.75M |
| EBIT | 2.05B | 1.46B | 1.15B | -2.26B | 898M | 569.52M | 672.94M | 479.78M | 168.35M | 82.23M | -19.49M | 16.33M | -2.67M |
| Net Interest Income | -1.24B | -1.59B | -1.83B | -1.94B | -1.84B | -1.6B | -1.29B | -915.68M | -636.97M | -406.4M | -263.16M | -125.55M | -124.97M |
| Interest Income | 0 | 0 | 89.78M | 97.55M | 42.23M | 50.45M | 29.01M | 53.02M | 19.21M | 5.6M | 0 | 1.35M | 6.93M |
| Interest Expense | 1.24B | 1.59B | 1.92B | 2.04B | 1.88B | 1.65B | 1.32B | 968.69M | 656.19M | 412M | 263.16M | 126.9M | 131.91M |
| Other Income/Expense | 1.18B | -74.32M | -1.77B | -1.84B | -1.54B | -1.52B | -1.22B | -906.21M | -608.01M | -415.2M | -242.35M | -109.35M | -58.88M |
| Pretax Income | 3.22B | 1.39B | -614.86M | -4.3B | -989.88M | -948.75M | -548.44M | -426.43M | -439.66M | -332.98M | -284.73M | -110.57M | -134.58M |
| Pretax Margin % | 26.76% | 12.5% | -5.96% | -43.19% | -10.61% | -12.13% | -9.56% | -10.34% | -15.75% | -20.6% | -26.96% | -15.71% | -28.74% |
| Income Tax | 377.74M | 456.92M | 156.05M | -14.78M | 276.24M | 242.46M | 120.78M | 15.65M | -9.39M | -6.08M | -8.31M | -11.98M | -4.58M |
| Effective Tax Rate % | 11.75% | 32.87% | -25.38% | 0.34% | -27.91% | -25.56% | -22.02% | -3.67% | 2.14% | 1.82% | 2.92% | 10.84% | 3.41% |
| Net Income | 2.83B | 923.77M | 3.43B | -4.29B | -1.27B | -1.19B | -669.21M | -442.08M | -430.27M | -326.9M | -276.41M | -98.58M | -130M |
| Net Margin % | 23.52% | 8.31% | 33.19% | -43.09% | -13.58% | -15.24% | -11.66% | -10.72% | -15.41% | -20.23% | -26.18% | -14.01% | -27.76% |
| Net Income Growth % | -37.68% | -73.03% | 179.84% | -238.84% | -6.29% | -78% | -51.38% | -2.75% | -31.62% | -18.27% | -180.38% | 24.17% | - |
| Net Income (Continuing) | 2.84B | 933.22M | -770.91M | -4.29B | -1.27B | -1.19B | -669.21M | -442.08M | -430.27M | -326.9M | -276.41M | -98.58M | -130M |
| Discontinued Operations | 0 | 0 | 4.2B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 897.23M | 897.96M | 129.93M | 165.58M | 116.59M | 59.17M | 120.82M | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 11.13 | 4.24 | -4.56 | -23.67 | -8.25 | -7.23 | -4.71 | -3.63 | -3.48 | -3.33 | -7.36 | -2.08 | -38.16 |
| EPS Growth % | 7228.57% | 192.98% | 80.74% | -186.91% | -14.11% | -53.5% | -29.75% | -4.31% | -4.5% | 54.76% | -253.85% | 94.55% | - |
| EPS (Basic) | - | 4.64 | -4.56 | -23.67 | -8.25 | -7.23 | -4.71 | -3.63 | -3.48 | -3.33 | -7.36 | -2.08 | -38.16 |
| Diluted Shares Outstanding | 253.96M | 205.57M | 183.52M | 183.52M | 183.06M | 181.61M | 156.69M | 137.87M | 123.78M | 98.07M | 37.39M | 48.28M | 3.41M |
| Basic Shares Outstanding | 194.29M | 190.07M | 183.52M | 181.26M | 176.85M | 174.83M | 145.5M | 121.85M | 123.78M | 98.07M | 37.39M | 48.28M | 3.41M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory and leverage exposure
According to the latest quarterly financial data, GDS reported a revenue growth rate of 22.9% in 2026Q1, a significant departure from the 2.6% contraction observed in 2025Q3, suggesting that the company's top-line trajectory remains highly sensitive to project delivery cycles and hyperscale customer move-in timelines.
The sharp acceleration in 2026Q1 revenue warrants further investigation into whether this represents a sustainable shift in demand or merely the recognition of delayed project completions. Investors should monitor whether the company can maintain this momentum given the competitive pressures and regulatory constraints on power capacity in Tier 1 Chinese markets.
As reported in recent income statements, GDS maintained a gross margin of 32.1% in 2026Q1, which represents a notable improvement from the 16.9% low seen in 2023Q4, yet the structural reliance on high-fixed-cost infrastructure continues to limit overall profitability compared to global data center peers.
The historical volatility in gross margins suggests that GDS struggles to pass through utility cost fluctuations effectively under its long-term service agreements. The current margin profile appears to be highly dependent on achieving optimal utilization rates across its capital-intensive data center portfolio.
Based on the provided figures, GDS achieved an operating margin of 27.0% in 2026Q1, a stark contrast to the negative 114.9% margin recorded in 2023Q4, indicating that the company's ability to scale operating income relative to gross profit remains erratic and subject to significant non-operating volatility.
The inconsistency in operating leverage suggests that SG&A expenses are not yet fully decoupled from the company's aggressive expansion efforts. Analysts should scrutinize whether the recent improvement in operating margins is driven by genuine operational efficiency or by temporary accounting adjustments and reduced overhead spending.
Financial statements reveal that GDS's net income has fluctuated wildly, swinging from a $3.2 billion loss in 2023Q4 to a $2.6 billion profit in 2026Q1, which suggests that reported earnings are heavily influenced by non-operating items rather than core operational performance or sustainable business growth.
The extreme variance in net income figures implies that investors should prioritize cash flow metrics over GAAP earnings when evaluating the company's health. The absence of share-based compensation in recent quarters, compared to previous periods, may also be masking the true cost of talent retention and capital structure management.
Quick answers to the most common questions about buying GDS stock.
For fiscal year 2025, GDS Holdings Limited (GDS) reported total revenue of $11.12B. This represents a 2274.5% increase compared to $468.3M in 2014.
GDS Holdings Limited (GDS) is profitable, generating $923.8M in net income for the fiscal year ending 2025 with a net profit margin of 8.3%.
GDS Holdings Limited (GDS) reported an operating income of $1.46B, resulting in an operating profit margin of 13.2%. This margin reflects the operational efficiency of the business before interest and taxes.
GDS Holdings Limited (GDS) generated $2.27B in gross profit for the year, representing a gross profit margin of 20.5%. This demonstrates the company's core pricing power and production efficiency.