GDS Holdings Ltd (GDS) stock is soaring 5.13% in pre-market trading on Thursday, following the release of its impressive third-quarter 2025 results and the successful completion of its China data center REIT IPO. The company's return to profitability and strong revenue growth have bolstered investor confidence in its business model and growth prospects.
According to the latest earnings report, GDS Holdings achieved a net income of RMB 726 million in Q3 2025, marking a significant turnaround from previous quarters. The company also reported a 10.2% year-over-year increase in revenue, reaching RMB 2.89 billion. This robust performance was primarily driven by strong demand for data center services, particularly as AI infrastructure requirements continue to accelerate in China.
A key highlight of the quarter was the completion of GDS Holdings' China data center REIT IPO. This strategic move is expected to provide the company with additional capital flexibility to support its ongoing expansion plans. Furthermore, management has reaffirmed its full-year 2025 revenue guidance of RMB 11,290 million to RMB 11,590 million, signaling confidence in the company's ability to maintain its growth trajectory despite market challenges.