GDS Stock Falls Despite Q1 Beat As Guidance Trails Estimates

GDS Holdings Ltd.   (NASDAQ: GDS ) shares are trading lower on Wednesday after the company reported first-quarter results and reiterated below-consensus guidance. Details Net revenue rose 23.6% year over year (Y/Y) to 3.37 billion yuan. In U.S. dollar terms, revenue came in at $488.1 million, above expectations of $440.7 million. Earnings per American depositary share were 10.58 yuan, compared with 3.47 yuan in the year-ago quarter. In U.S. dollar terms, EPS of $1.53, exceeded the $1.06 consensus estimate. The company reported a strong rebound in data center demand driven by AI, with total bookings reaching 1.8 gigawatts as of Q1 2026. CEO William Huang said the company recorded net new bookings of around 200MW. That’s “the highest level ever” for a single quarter. Adjusted gross profit increased 34.1% Y/Y to 1.95 billion yuan, and the margin rose to 58.0% from 53.4% a year earlier. Adjusted EBITDA increased 47.2% Y/Y to 1.95 billion yuan. Also, margins ... Full story available on Benzinga.com