GDS Holdings
GDS Technology Information Technology Services
GDS Holdings' revenue for fiscal 2025 (year ended December 2025) was $1.6 billion, up 10.8% from fiscal 2024. In the quarter to June 2026, revenue grew 12.4%, EPS grew 1,116.7%, free cash flow grew 142.2% and total debt rose 2.59%, each against the same quarter a year earlier. Revenue growth for ten consecutive years.
Follow GDS
GDS Holdings (GDS) Altman Z-score
GDS Holdings's Altman Z-score for fiscal 2025 is 0.76, in the distress zone (below 1.81).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 0.76 | 0.27 |
| FY2024 | 0.49 | 0.47 |
| FY2023 | 0.02 | (0.35) |
| FY2022 | 0.37 | (0.41) |
| FY2021 | 0.78 | (1.43) |
| FY2020 | 2.21 | 0.54 |
| FY2019 | 1.67 | 0.91 |
| FY2018 | 0.76 | (0.29) |
| FY2017 | 1.05 | 0.74 |
| FY2016 | 0.32 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.14 | — | 0.17 | |
| Retained earnings / total assets | (0.06) | — | −0.09 | |
| EBIT / total assets | 0.00 | — | −0.00 | |
| Market value of equity / total liabilities | 0.89 | — | 0.54 | |
| Sales / total assets | 0.14 | — | 0.14 | |
| Altman Z-score | Distress zone | 0.76 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.25 | ||
Z and Z″ put GDS Holdings in different zones: distress zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| EXLS ExlService Holdings, Inc. compare | 8.6× |
| EPAM EPAM Systems, Inc. compare | 8.1× |
| G Genpact Limited compare | 3.3× |
| INGM Ingram Micro Holding Corporation compare | 3.1× |
| PSN Parsons Corporation compare | 3.1× |
| SAIC Science Applications International Corporation compare | 2.8× |
| APLD Applied Digital Corporation compare | 1.3× |
| CIFR Cipher Digital Inc. compare | 0.9× |
| GDS GDS Holdings | 0.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets