GDS (NASDAQ:GDS) Trading 7.2% Higher After Earnings Beat

GDS Holdings (NASDAQ:GDS)’s stock price shot up 7.2% during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $35.00 and last traded at $35.1080. Approximately 905,416 shares changed hands during mid-day trading, a decline of 59% from the average daily volume of 2,188,406 shares. The stock had previously closed at $32.74.

The company reported $0.52 earnings per share (EPS) for the quarter. GDS had a net margin of 30.70% and a return on equity of 18.63%. The company had revenue of $454.51 million during the quarter.

More GDS News

Here are the key news stories impacting GDS this week:

• Positive Sentiment: Management said AI is transforming GDS’s business, with sales momentum at its strongest level ever. Record first-half bookings and rising demand for high-performance data centers support the company’s growth outlook. GDS CEO says AI is transforming the business as sales momentum hits strongest level ever
• Positive Sentiment: GDS set a 1-gigawatt sales target for 2026, while its backlog is building toward a significant increase in customer move-ins expected in 2027. The stronger booking pipeline could improve future revenue visibility. GDS Q2 earnings call focuses on AI demand and 1-GW sales target
• Positive Sentiment: The company raised its 2026 revenue outlook to approximately $1.9 billion, above the roughly $1.8 billion analyst consensus. Reported second-quarter revenue of about $475.1 million also exceeded expectations near $454.3 million. GDS Holdings reports second-quarter 2026 results
• Neutral Sentiment: Reported earnings comparisons vary by source and measurement: one account showed quarterly EPS of $0.52 versus a $0.01 consensus estimate, while another reported $0.56 versus a $1.35 estimate. The conflicting figures may have contributed to investor uncertainty despite solid operating trends. GDS Holdings misses Q2 earnings and revenue estimates
• Negative Sentiment: The earnings miss highlighted by Zacks may have outweighed the revenue beat and upbeat AI commentary, particularly if investors are focused on profitability and the company’s ability to convert its expanding backlog into earnings and cash flow.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on GDS. TD Cowen cut their price objective on shares of GDS from $37.00 to $36.00 and set a “buy” rating for the company in a research report on Thursday, May 21st. Weiss Ratings raised GDS from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, May 18th. Wall Street Zen upgraded GDS from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Zacks Research lowered GDS from a “strong-buy” rating to a “hold” rating in a report on Friday, July 24th. Finally, Piper Sandler set a $36.00 price target on GDS in a report on Thursday, May 21st. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $48.33.

Insider Buying and Selling

In other GDS news, Director Judy Qing Ye sold 37,394 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $36.21, for a total value of $1,354,036.74. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Yixin Qian sold 10,000 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $35.25, for a total transaction of $352,500.00. Following the completion of the sale, the vice president directly owned 66,865 shares of the company’s stock, valued at approximately $2,356,991.25. This trade represents a 13.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 7.99% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Parallel Advisors LLC increased its stake in GDS by 3.5% in the 4th quarter. Parallel Advisors LLC now owns 6,901 shares of the company’s stock worth $241,000 after buying an additional 236 shares in the last quarter. PNC Financial Services Group Inc. raised its holdings in GDS by 8.4% during the first quarter. PNC Financial Services Group Inc. now owns 3,904 shares of the company’s stock valued at $157,000 after acquiring an additional 303 shares during the period. Vanguard Personalized Indexing Management LLC lifted its position in shares of GDS by 3.0% in the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 15,955 shares of the company’s stock valued at $557,000 after acquiring an additional 468 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of GDS by 41.6% in the second quarter. EverSource Wealth Advisors LLC now owns 1,806 shares of the company’s stock valued at $55,000 after acquiring an additional 531 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC boosted its stake in shares of GDS by 11.0% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 5,824 shares of the company’s stock worth $203,000 after acquiring an additional 577 shares during the period. Hedge funds and other institutional investors own 33.71% of the company’s stock.

GDS Stock Performance

The company has a quick ratio of 1.87, a current ratio of 1.87 and a debt-to-equity ratio of 1.25. The business has a 50 day moving average price of $32.12 and a two-hundred day moving average price of $38.62. The stock has a market cap of $6.90 billion, a P/E ratio of 16.00 and a beta of 0.43.

About GDS

GDS Holdings Limited, founded in 2001 and headquartered in Shanghai, is a leading network-neutral data center services provider in China. The company operates a portfolio of state-of-the-art data center facilities designed to support the mission-critical IT infrastructure of cloud service providers, internet enterprises, financial institutions, and government entities. GDS was among the first Chinese providers to offer high-density colocation solutions, catering to customers with demanding computing and storage requirements.

GDS specializes in delivering scalable colocation, cross-connect, and interconnection services within its facilities, enabling clients to establish high-speed, low-latency connections to major cloud platforms and internet exchange points.