Gorilla Technology Group Inc. (NASDAQ: GRRR) is having a rough Tuesday morning, and it's not because the company's latest numbers were bad. Quite the opposite, actually. The company beat expectations for the first half of 2026, but investors are looking past that and focusing on something else: the 2027 revenue forecast, which came in lighter than Wall Street hoped.

Shares dropped about 10% in premarket trading, sitting at $14.24. That's the kind of move that makes you wonder if the market is punishing the company for not being optimistic enough about the future, even when the present looks pretty good.

Revenue Growth Accelerates

Let's start with the good stuff. First-half revenue nearly doubled from a year earlier. In the second quarter alone, revenue jumped 138% year over year to $50.1 million, thanks to AI infrastructure and data-center programs. The company also pointed to continued deliveries in security intelligence, network intelligence, and smart-city projects in Egypt, Taiwan, and Thailand.

Here's a fun detail: Gorilla originally targeted about $33 million in quarterly revenue. Then it raised that goal to $44 million. And then it blew past that revised target by about $6 million, or nearly 14%. That's the kind of overdelivering that usually makes investors happy.

The operating loss narrowed to about $2.2 million in the second quarter, down from $41.1 million in the first quarter. That's a big improvement. But adjusted EBITDA swung to a loss of $14.6 million from a profit of $6.2 million a year earlier. So there's still some pain there.

On the cash front, operating cash consumption fell 65% to $4.3 million in the first half, compared with $12.5 million a year earlier. Cash rose by about $79.8 million during the period, ending June at roughly $179.4 million. So the company is in a decent cash position.

Data-Center Expansion Continues

Gorilla is investing heavily in its data-center ambitions. In the first half, it put more than $14.1 million into property and equipment, bringing total investment to about $29.4 million. That's a lot of money, but the company says it's necessary for growth.

Gross margins are being squeezed right now because of hardware deployments and project mobilization. But management expects margins to improve as utilization rises and revenue shifts toward compute, monitoring, and managed services. In other words, the hardware-heavy phase is temporary, and the higher-margin services should kick in later.

On the project front, YOTA Phase 1 testing is complete, with deliveries and deployment underway. Phase 2 equipment is being manufactured and should be ready within 25 to 30 days. In Batam, Indonesia, the company is targeting 200 megawatts of additional capacity, with initial capacity expected by mid-2027 and broader deployment in the second half of 2027. In Korat, Thailand, land clearing is done, and financing, GPU procurement, infrastructure work, and customer contracting are all in progress.

Guidance Trails Street View

Now for the part that's spooking investors. Gorilla expects third-quarter revenue of $48 million to $50 million, which is above its prior outlook of $36 million to $40 million. But that still trails the $84.57 million estimate. That's a big gap, and it might be why the market is nervous.

For the full year 2026, the company expects revenue to exceed $200 million, above the $190.90 million estimate and compared with its earlier outlook of $137 million to $200 million. So that's good.

But for 2027, Gorilla expects revenue of $450 million to $500 million, below the $559.99 million estimate. That's the headline number that's dragging the stock down. Management didn't issue 2027 gross-margin guidance, but it said margins could exceed 40%, with YOTA 1, YOTA 2, and Nutra DC averaging about 75%. That's a pretty juicy margin if it materializes.

The company also said it plans to use more project financing and debt to fund future expansion and capital spending. That's a shift from relying on cash, and it could be a sign that the company wants to preserve its cash pile while still growing aggressively.

So, what's the takeaway? Gorilla is growing fast, beating estimates, and building out data centers. But the market is forward-looking, and the 2027 guidance suggests the growth might slow down a bit. That's enough to make investors hit the sell button, at least for now.