Net margin is calculated as Net Income divided by its Revenue. GDS Holdings's Net Income for the
three
months ended in Mar. 2026 was MXN6,930 Mil. GDS Holdings's Revenue for the
three
months ended in Mar. 2026 was MXN8,810 Mil. Therefore, GDS Holdings's net margin for the quarter that ended in Mar. 2026 was 78.66%.
The historical rank and industry rank for GDS Holdings's Net Margin % or its related term are showing as below:
MEX:GDSN'
s Net Margin % Range Over the Past 10 Years
Min: -43.85 Med: -15.58 Max: 33.19
Current: 23.93
MEX:GDSN's Net Margin % is ranked better than 92.78% of 2827
companies
in the Software industry
Industry Median: 2.54
vs MEX:GDSN: 23.93
GDS Holdings (MEX:GDSN) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
GDS Holdings Net Margin % Related Terms
GDS Holdings Net Margin % Historical Data
* Premium members only.
The historical data trend for GDS Holdings's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, GDS Holdings's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
GDS Holdings Net Margin % vs Software Industry
For the Software industry and Technology sector, GDS Holdings's Net Margin % distribution charts can be found below:
* The bar in red indicates where GDS Holdings's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
GDS Holdings (MEX:GDSN) has a Net Margin % of 78.66% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on GDS Holdings and its competitors. According to the industry distribution chart, GDS Holdings ranks #204 out of 2827 companies in the Software industry, placing it in the top 7.2%.
Is GDS Holdings' Net Margin % too high?
GDS Holdings' current Net Margin % is 78.66%. The Software industry median Net Margin % is 2.54. GDS Holdings' value of 78.66% is 2996.9% above this industry median. Based on the distribution chart, GDS Holdings ranks #204 out of 2827 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, GDS Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GDS Holdings' Net Margin % compare to INGM and PSN?
According to the Software industry distribution chart, GDS Holdings ranks #204 out of 2827 companies for Net Margin %. This places GDS Holdings in the top 7% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. GDS Holdings' value of 78.66% is 2996.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GDS Holdings's current Net Margin % of 78.66% is 2996.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on GDS Holdings and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GDS Holdings's current Net Margin % is 78.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GDS Holdings stock overvalued right now?
Based on GuruFocus' analysis, GDS Holdings (MEX:GDSN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN449.22, compared to a current price of MXN618.00 — trading 37.6% above its estimated fair value. The current Net Margin % is 78.66% and 2996.9% above the Software industry median of 2.54. GDS Holdings' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For GDS Holdings (MEX:GDSN), the current Net Margin % is 78.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is GDS Holdings (MEX:GDSN) Overvalued in 2026?
Based on GuruFocus' analysis, GDS Holdings stock appears to be overvalued.
The current stock price of MXN618.00 is trading 37.6% above its estimated GF Value™ of MXN449.22.
GuruFocus considers GDS Holdings to be Significantly Overvalued.
Key valuation signals for MEX:GDSN:
Net Margin %: 78.66%
GF Value™: MXN449.22 vs. price of MXN618.00 (37.6% above fair value)
Industry Position: 2996.9% above the Software median (#204 of 2827)
No single metric tells the full story. See the MEX:GDSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GDS Holdings started as an IT service provider in 2001, then moved to the data center business with its first self-developed data center opening in 2010. The company now develops and operates data centers in China and also builds, operates, and transfers data centers for other clients. It offers colocation and managed services and mainly targets hyperscale cloud service customers who take large areas of its data centers or even whole data centers under long-term contracts. Its data centers are located predominantly in and around the Tier 1 cities in China, and it has also started expanding into Southeast Asia via the now 23% owned DayOne. GDS listed on the Nasdaq in 2016 and completed a secondary listing in Hong Kong in 2020.
69GF Score
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Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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