GDS Holdings Ltd (GDS)
NASDAQ:GDS
Top Page
GDS Holdings
(NASDAQ:GDS)
Select Model
Select Model
Rating:57Neutral
Price Target:
$41.00
▼(-1.84% Downside)
Action:ReiteratedDate:03/19/26
The score is held back primarily by weak cash generation (persistent negative free cash flow), elevated leverage, and a sharp 2025 revenue contraction. Offsetting these are constructive technical momentum and a positive earnings-call outlook tied to AI-related demand and improved capital access, though the high P/E and noted pricing/booking risks temper the upside.
Positive Factors
AI-driven demand and sizable backlog
A high share of AI-related bookings provides structurally stronger, power-intensive demand that supports sustained capacity utilization and longer-term contracted revenue. Visible backlog and planned move‑ins (70k+ sqm and large megawatt pipeline) create multi‑period revenue visibility and reduce near-term demand volatility.
Negative Factors
Persistent negative free cash flow
Consistent negative free cash flow signals an ongoing heavy capital intensity profile and weak cash conversion that limits reinvestment flexibility. Over time this elevates dependence on external financing, constrains capacity to deleverage, and increases vulnerability to tighter credit conditions or higher rates.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven demand and sizable backlog
A high share of AI-related bookings provides structurally stronger, power-intensive demand that supports sustained capacity utilization and longer-term contracted revenue. Visible backlog and planned move‑ins (70k+ sqm and large megawatt pipeline) create multi‑period revenue visibility and reduce near-term demand volatility.
Read all positive factors
GDS Holdings (GDS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.67B
Dividend YieldN/A
Average Volume (3M)1.77M
Price to Earnings (P/E)50.2
Beta (1Y)1.46
Revenue Growth1.95%
EPS GrowthN/A
CountryUS
Employees2,276
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.05
Shares Outstanding200,928,820
10 Day Avg. Volume1,156,517
30 Day Avg. Volume1,772,409
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)1.73
Price to Sales (P/S)4.17
P/FCF Ratio-38.29
Enterprise Value/Market Cap10.25
Enterprise Value/Revenue7.80
Enterprise Value/Gross Profit35.27
Enterprise Value/Ebitda14.75
Forecast
1Y Price Target
$49.00Price Target Upside17.31% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)2.85
Revenue Forecast (FY)$12.64B
GDS Holdings Business Overview & Revenue Model
Company Description
GDS Holdings Limited, together with its subsidiaries, develops and operates data centers in the People's Republic of China. The company provides colocation services comprising critical facilities space, customer-available power, racks, and cooling...
How the Company Makes Money
GDS primarily makes money by selling data center services under customer contracts, with revenue largely tied to the delivery of capacity (space and power) and related services in its facilities. Key revenue streams generally include: (1) Colocati...
GDS Holdings Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant growth in AI-driven demand and successful capital access through the C-REIT IPO. However, there are concerns about subdued bookings and potential price pressures. Overall, the sentiment is positive due to the strategic positioning and financial strength.Positive Updates
Revenue and EBITDA Growth
Revenue increased by 10.2% and adjusted EBITDA grew by 11.4% year-on-year in Q3 2025, continuing the trend of healthy growth.
Negative Updates
Subdued New Bookings
After strong bookings in Q1 2025, new bookings have been relatively subdued, which may affect growth rates next year.
Read all updates
Q3-2025 Updates
Positive
Negative
Revenue and EBITDA Growth
Revenue increased by 10.2% and adjusted EBITDA grew by 11.4% year-on-year in Q3 2025, continuing the trend of healthy growth.
Read all positive updates
Company Guidance
During the third quarter of 2025, GDS Holdings Limited reported a 10.2% increase in revenue and an 11.4% rise in adjusted EBITDA year-on-year. The company achieved a gross additional area utilization of around 23,000 square meters and is on track to reach its highest annual move-in volume. GDS is currently delivering a significant 40,000 square meter, 152-megawatt order, with visible plans for over 70,000 square meters of move-in from the backlog next year. For the first nine months of 2025, new bookings amounted to 75,000 square meters or 240 megawatts, with expectations to hit nearly 300 megawatts for the full year. Approximately 65% of these bookings are AI-related. GDS has secured around 900 megawatts of powered land, suitable for AI demand, and plans to inject more assets into its C-REIT following a successful IPO on the Shanghai Stock Exchange. The C-REIT is trading at RMB 4.375, up 45.8% from the IPO price, with an implied dividend yield of 3.6%. The company's net debt to last quarter annualized adjusted EBITDA ratio decreased to 6.0x, benefiting from favorable interest rates, with an effective rate of 3.3%. GDS is on track to achieve the midpoint of its revenue guidance and at or above the top end of its EBITDA guidance for the full year of 2025.GDS Holdings Financial Statement Overview
Summary
Income Statement
61
Positive
Balance Sheet
54
Neutral
Cash Flow
42
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.12B | 10.32B | 9.96B | 9.33B | 7.82B |
| Gross Profit | 2.27B | 2.22B | 1.92B | 1.94B | 1.78B |
| EBITDA | 4.83B | 4.51B | 1.36B | 4.19B | 3.23B |
| Net Income | 923.77M | 3.43B | -4.29B | -1.27B | -1.19B |
Balance Sheet | |||||
| Total Assets | 80.05B | 73.65B | 74.45B | 74.81B | 71.63B |
| Cash, Cash Equivalents and Short-Term Investments | 14.32B | 7.87B | 7.71B | 8.61B | 9.97B |
| Total Debt | 47.55B | 44.46B | 47.99B | 44.68B | 37.79B |
| Total Liabilities | 52.29B | 49.98B | 54.32B | 50.63B | 47.10B |
| Stockholders Equity | 26.86B | 23.54B | 19.96B | 24.07B | 24.47B |
Cash Flow | |||||
| Free Cash Flow | -1.21B | -1.32B | -4.19B | -4.95B | -8.50B |
| Operating Cash Flow | 3.27B | 1.94B | 2.07B | 2.86B | 1.20B |
| Investing Cash Flow | -2.96B | -8.76B | -6.33B | -11.27B | -13.69B |
| Financing Cash Flow | 5.94B | 17.06B | 3.14B | 4.86B | 8.12B |
GDS Holdings Technical Analysis
Positive
41.77
Price Trends
42.80
Negative
39.97
Positive
37.56
Positive
Market Momentum
-0.46
Negative
50.54
Neutral
73.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDS, the sentiment is Positive. The current price of 41.77 is below the 20-day moving average (MA) of 41.78, below the 50-day MA of 42.80, and above the 200-day MA of 37.56, indicating a neutral trend. The MACD of -0.46 indicates Negative momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 73.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDS.
GDS Holdings Risk Analysis
GDS Holdings disclosed 119 risk factors in its most recent earnings report. GDS Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
If GDSH's beneficial ownership in GDSI falls below 50% or cease to have the ability to appoint the majority of the board of directors of GDSI or otherwise ceases to have the control over the management and policies of GDSI, a change of control would be triggered under certain of GDSI's real property leases, customer agreements and/or loan agreements, and the business development, financial condition and future prospects of GDSH and/or GDSI may be materially and adversely affected. Q4, 2023
2.
Our customer agreement commitments are subject to reduction, potential cancellation and non-renewal upon expiry; if renewed, the renewal may be at lower pricing terms or for a lower commitment of utilization. Q4, 2023
GDS Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $1.94B | 6.07 | 13.41% | ― | -4.13% | 2143.48% | |
58 Neutral | $2.27B | -63.64 | -4.29% | ― | 20.09% | 86.04% | |
57 Neutral | $8.67B | 50.21 | 3.70% | ― | 1.95% | ― | |
53 Neutral | $2.76B | 26.53 | 20.43% | ― | -1.90% | ― | |
44 Neutral | $216.59M | -1.68 | -20.84% | ― | -12.45% | -142.77% |
* Technology Sector Average
GDS
GDS Holdings
41.77
21.37
104.75%
VNET
VNET Group, Inc. Sponsored ADR
8.44
2.94
53.45%
CNDT
Conduent
1.44
-0.68
-32.08%
DXC
DXC Technology
12.28
-2.43
-16.52%
KD
Kyndryl Holdings Incorporation
13.07
-16.78
-56.21%
GDS Holdings Corporate Events
GDS Moves to Boost Founder’s Voting Power to Meet Chinese Data-Security Client Demands
Jan 26, 2026
On January 26, 2026, GDS Holdings announced it will convene an extraordinary general meeting and separate meetings for holders of its Class A ordinary shares, Series A preferred shares and Class B ordinary shares on February 24, 2026 in Shanghai, ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.