The stock initially fell following the earnings release but quickly reversed course. GDS shares were recently up more than 5% as investors weighed the results against the company’s stronger outlook and accelerating AI demand.
During the earnings call, CEO William Huang said, “AI is transforming our business,” adding that sales momentum is “the strongest we have ever seen.”
GDS reported earnings of 52 cents per share, below the analyst estimate of $1.35. Revenue of $455.11 million also missed the $463.16 million consensus estimate.
AI Demand Drives Bookings And Backlog
Revenue rose 6.5% year over year, while adjusted EBITDA increased 2.5%. Adjusted EBITDA margin fell to 45.5% from 47.3% a year earlier.
