GDS Holdings shares turned higher on Thursday and were up 5.18% at $34.43 at publication after the data center operator raised its fiscal 2026 revenue outlook, even though second-quarter earnings and revenue missed analyst estimates. CEO William Huang said, "AI is transforming our business" and that sales momentum is "the strongest we have ever seen," as the company posted revenue of $455.11 million, up 6.5% year over year, earnings of 52 cents per share, adjusted EBITDA (a cash-profit metric) up 2.5%, and a margin of 45.5%, down from 47.3% a year earlier. GDS booked 260 megawatts of new capacity in the quarter, lifted its full-year bookings target to 1 gigawatt, added 600 MW of reservations and said it expects more than 1 GW of new reservations in 2026, with demand coming from major Chinese technology companies and emerging AI companies. Its backlog rose to 757 MW from 450 MW at the start of 2026 and management expects that to top 1 GW by year-end, while first-half move-ins (customer capacity going live) reached 145 MW and are projected to total about 235 MW for the year. GDS ended the quarter with nearly 20 billion Chinese yuan in cash, net leverage of 4.7 times annualized adjusted EBITDA, raised its 2026 revenue outlook to $1.866 billion to $1.910 billion from $1.749 billion to $1.819 billion, lifted planned 2026 capital expenditure to 10 billion Chinese yuan from 9 billion Chinese yuan, and said move-ins should more than double in 2027 with further growth in 2028.