GDS: 1Q26 Results - Financials Mixed; Bookings Momentum Continues

Research evidence excerpt

GDS: 1Q26 Results - Financials Mixed; Bookings Momentum Continues

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Jonathan Atkin (Analyst)

Rashim Jain (AVP)

May 20, 2026

GDS Holdings Limited

1Q26 Results - Financials Mixed; Bookings Momentum Continues

NASDAQ: GDS | USD 36.66 | Outperform | Speculative Risk | Price Target USD 48.00

Sentiment: Neutral

Net: GDS reported consolidated revenue (excluding one-time items) below consensus and adjusted EBITDA (excluding one-time

items) slightly above consensus, with margin above consensus. Capex came in well below estimates, driven by Chinese New Year

seasonality. New leasing totaled ~196 MW in 1Q26, with a further ~138 MW signed in 2Q26 to date; year-to-date bookings plus

reservations exceeded 1 GW. GDS completed US$685M of capital recycling via a partial DayOne share sale and a convertible

preferred share placement, bringing pro forma cash to over US$2.7B and reducing net debt/LQA adjusted EBITDA to 4.7x. Full-

year 2026 guidance is unchanged.

1Q26 Financials Highlights

• Revenue: Consolidated revenue (excl. one-time items) was C¥2,938M (0.6% Q/Q, 7.9% Y/Y), missing consensus of C¥2,988M by

1.7%. Reported revenue of C¥3,367M included a one-time revenue impact of RMB 429M. The one-time item was a recurring

service income restructured into a one-time payment rather than being booked over multiple quarters; an estimate of these

items was included in guidance.

• Adjusted EBITDA: Adjusted EBITDA (excl. one-time items) was C¥1,430M (4.7% Q/Q, 8.0% Y/Y), beating consensus of C¥1,418M

by 0.9%. Reported adjusted EBITDA of C¥1,949M includes the impact of one-time items totaling RMB 518M.

• Margin: Adjusted EBITDA margin (excl. one-time items) was 48.7%, was higher than consensus 47.4%, with reported margin

of 57.9%.