What were GDS Holdings’ (NASDAQ:GDS) total revenues for Q1 2026?

GDS reported net revenue of RMB3,367.1 million for Q1 2026, a 23.6% increase year-over-year, driven by demand from cloud service providers, internet enterprises, and AI infrastructure clients.

How did GDS perform on profitability in Q1 2026?

Net income surged 247.1% year-over-year to RMB2,652.1 million, largely reflecting operational scaling and a partial sale of equity in DayOne, which generated $385 million in proceeds.

How did adjusted EBITDA change compared to Q1 2025?

Adjusted EBITDA rose 47.2% year-over-year to RMB1,948.7 million, supported by margin expansion from high utilization rates across its data center portfolio.

What drove the bottom-line expansion at GDS in Q1 2026?

The bottom-line growth was fueled by strong operational performance, high-margin demand from enterprise clients, and corporate financing transactions, including the DayOne partial equity sale.

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GDS net income surges on double-digit revenue growth and asset sale

Q: How did GDS strengthen its liquidity position during the quarter?

The company raised an additional $300 million through a private placement of convertible preferred shares, supplementing cash proceeds from the DayOne divestment.

Written by Liezl GambePublished May. 20 2026Last Updated May. 20 2026

GDS Holdings (NASDAQ:GDS), a developer and operator of high-performance data centers in China and South-East Asia, announced its unaudited financial results for the first quarter ended March 31, 2026, delivering substantial bottom-line expansion fueled by operational scaling and corporate financing transactions.

The company's net revenue for the quarter reached RMB3,367.1 million, representing a 23.6% increase compared to the first quarter of 2025.

Net income experienced a multi-fold acceleration, surging 247.1% year-over-year to RMB2,652.1 million.

The bottom-line metrics were heavily impacted by a completed partial sale of equity shares in DayOne, which generated gross proceeds of $385 million.

Operational profitability also demonstrated strong performance, with first-quarter adjusted EBITDA rising 47.2% year-over-year to RMB1,948.7 million.

The margin expansion reflects sustained deployment demand from cloud service providers, large-scale internet enterprises, and artificial intelligence infrastructure firms.

In tandem with the DayOne asset divestment, GDS strengthened its liquidity position during the three-month period by closing a private placement of convertible preferred shares, raising an additional $300 million in capital.

Backed by the capitalized balance sheet and steady data center utilization rates, GDS management reaffirmed its previously issued full-year financial outlook for 2026.

The company continues to track within its baseline projections for both annual consolidated revenue and full-year adjusted EBITDA targets.