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The Zacks Consensus Estimate for the company’s revenues is set at $463.2 million, suggesting a 14.4% year-over-year jump from the year-ago quarter’s $404.9 million. This growth acceleration is predicted to have been led by the growing demand for data centers, high customer conviction in domestic chips and a solid backlog.
The AI-fueled resurgence in data center demand is expected to have driven the top line. During the first-quarter 2026 earnings call, William Huang, the CEO, noted that the rising availability of domestic chips is vital to the company’s multi-year growth story. Hence, customers’ heightened inclination toward future deployments at a larger scale and a high degree of conviction are expected to act as the primary growth catalyst.
During the first-quarter 2026 earnings call, Huang stated that the company’s backlog increased more than 200,000 square meters, or nearly 600 megawatts. A high proportion of this backlog is expected to become billable within the next six to eight quarters. Counting on this positive, we anticipate GDS’s growth to have experienced sufficient acceleration during the second quarter of 2026.
For earnings per share, the consensus estimate is pegged at $1.35, whereas it incurred a loss of 6 cents in the year-ago quarter. The anticipated year-over-year growth rate is a whopping 2,350%. We anticipate data center ramp-ups and solid customer wins to have a positive impact on operational growth, resulting in margin expansion. Margin expansion is likely to have been driven by prudent expense management, leading to bottom-line growth.
What Our Model Says About GDS
Our proven model does not conclusively predict an earnings beat for GDS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
GDS Holdings has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this time around.
Klarna (KLAR - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $987.9 million, indicating 20% year-over-year growth. The consensus estimate for loss is pinned at 7 cents per share, whereas it incurred a loss of 14 cents in the year-ago quarter. The company surpassed earnings estimates in the first quarter of 2026 by 94.4%.
The company is scheduled to announce second-quarter 2026 results on Aug. 18.
Coherent Corp. (COHR - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $2 billion, hinting at a 30.3% increase from the year-ago quarter’s actual. For earnings, the consensus estimate is pegged at $1.62 per share, suggesting a 62% rally from the year-ago quarter’s reported number. The company met earnings estimates in the first quarter of 2026.
COHR has an Earnings ESP of +2.65% and a Zacks Rank of 3 at present. The company is scheduled to announce second-quarter 2026 results on Aug. 12.
View the Zacks #1 Rank List
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GDS Gears Up to Report Q2 Earnings: Here's What Investors Should Know
Key Takeaways
GDS Holdings Limited (GDS - Free Report) is scheduled to report second-quarter 2026 results on Aug. 13, before market open.
Over the trailing four quarters, GDS Holdings’ earnings surpassed the Zacks Consensus Estimate, with an average earnings surprise of 610%.
GDS Holdings Price and EPS Surprise
GDS Holdings price-eps-surprise | GDS Holdings Quote
GDS’s Q2 Expectations
The Zacks Consensus Estimate for the company’s revenues is set at $463.2 million, suggesting a 14.4% year-over-year jump from the year-ago quarter’s $404.9 million. This growth acceleration is predicted to have been led by the growing demand for data centers, high customer conviction in domestic chips and a solid backlog.
The AI-fueled resurgence in data center demand is expected to have driven the top line. During the first-quarter 2026 earnings call, William Huang, the CEO, noted that the rising availability of domestic chips is vital to the company’s multi-year growth story. Hence, customers’ heightened inclination toward future deployments at a larger scale and a high degree of conviction are expected to act as the primary growth catalyst.
During the first-quarter 2026 earnings call, Huang stated that the company’s backlog increased more than 200,000 square meters, or nearly 600 megawatts. A high proportion of this backlog is expected to become billable within the next six to eight quarters. Counting on this positive, we anticipate GDS’s growth to have experienced sufficient acceleration during the second quarter of 2026.
For earnings per share, the consensus estimate is pegged at $1.35, whereas it incurred a loss of 6 cents in the year-ago quarter. The anticipated year-over-year growth rate is a whopping 2,350%. We anticipate data center ramp-ups and solid customer wins to have a positive impact on operational growth, resulting in margin expansion. Margin expansion is likely to have been driven by prudent expense management, leading to bottom-line growth.
What Our Model Says About GDS
Our proven model does not conclusively predict an earnings beat for GDS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
GDS Holdings has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this time around.
Klarna (KLAR - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $987.9 million, indicating 20% year-over-year growth. The consensus estimate for loss is pinned at 7 cents per share, whereas it incurred a loss of 14 cents in the year-ago quarter. The company surpassed earnings estimates in the first quarter of 2026 by 94.4%.
KLAR has an Earnings ESP of +43.34% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is scheduled to announce second-quarter 2026 results on Aug. 18.
Coherent Corp. (COHR - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $2 billion, hinting at a 30.3% increase from the year-ago quarter’s actual. For earnings, the consensus estimate is pegged at $1.62 per share, suggesting a 62% rally from the year-ago quarter’s reported number. The company met earnings estimates in the first quarter of 2026.
COHR has an Earnings ESP of +2.65% and a Zacks Rank of 3 at present. The company is scheduled to announce second-quarter 2026 results on Aug. 12.