Applied Digital (NASDAQ:APLD) Announces Earnings Results

Applied Digital (NASDAQ:APLD) announced its quarterly earnings results on Monday. The company reported ($0.39) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.30), Zacks reports. Applied Digital had a negative net margin of 52.84% and a negative return on equity of 15.91%. The company had revenue of $240.35 million during the quarter, compared to analyst estimates of $96.85 million. During the same period in the previous year, the firm posted ($0.24) earnings per share. The company’s revenue was up 406.3% compared to the same quarter last year.

Here are the key takeaways from Applied Digital’s conference call:

• Contracted lease value more than quintupled to approximately $36 billion, representing 1.41 gigawatts of contracted critical IT load across five campuses. More than 80% of the contracted capacity is leased to investment-grade customers, according to management.
• Management is negotiating roughly 250 megawatts of expansion leases with existing customers at materially higher rates and potentially longer terms, which could add more than $6 billion of contracted revenue based on current pricing.
• The company reported $258.7 million of fourth-quarter revenue, up 407% from the comparable prior quarter, while adjusted EBITDA increased to $42.4 million. Management expects a significant financial ramp as additional HPC capacity comes online and now anticipates reaching its $1 billion NOI run-rate goal next year, three years ahead of its prior target.
• Applied Digital secured financing for the full 400 megawatts at Polaris Forge 1 and 200 megawatts at Polaris Forge 2, including $1.59 billion of notes at 7%, substantially below its earlier financing cost. Management said Macquarie’s equity funding and improving project-level debt access should support a repeatable, lower-cost financing model.
• Despite strong operating growth, the company recorded a $111.6 million net loss, driven partly by $116.8 million of stock-based compensation, including one-time ChronoScale-related awards and performance stock units. Capital spending is expected to reach approximately $600 million in the upcoming quarter, while power availability and supply-chain capacity remain the primary constraints on expansion.

Applied Digital Stock Down 3.0%

Applied Digital stock opened at $26.38 on Tuesday. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.38 and a quick ratio of 2.38. The stock has a market capitalization of $7.54 billion, a PE ratio of -35.65 and a beta of 5.67. The business has a 50 day simple moving average of $38.54 and a 200-day simple moving average of $34.54. Applied Digital has a 12 month low of $9.79 and a 12 month high of $50.72.

Trending Headlines about Applied Digital

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Fiscal Q4 revenue rose approximately 406% year over year to $240.4 million, substantially exceeding the roughly $96.9 million analyst consensus. The growth reflects strong demand for Applied Digital’s high-performance computing and AI data centers. Applied Digital Reports Fiscal Fourth Quarter and Full Year 2026 Results
• Positive Sentiment: Management said it has secured three long-term hyperscaler leases worth approximately $20 billion, with contracted AI data-center capacity reaching 1.4 gigawatts across five campuses. This provides significant future revenue visibility and supports the company’s AI infrastructure growth strategy. Applied Digital Corporation Stock Rebounds as Revenue Soars and AI Data Center Expansion Accelerates
• Positive Sentiment: The company reported progress at its Polaris Forge 1 HPC campus and expanded financing, including new notes and a larger credit facility, to fund additional data-center construction. Investors viewed the financing and customer commitments as evidence of continued operating momentum. Applied Digital Q4 2026 Earnings Call Transcript
• Neutral Sentiment: Coverage emphasized that Applied Digital’s results are being driven by a rapidly expanding AI data-center market and an expanding client base, including CoreWeave. The stock’s high beta and substantial recent volatility may continue to amplify reactions to earnings and financing news. Applied Digital Beats Quarterly Revenue Estimates on Surging AI Infrastructure Demand
• Negative Sentiment: Despite the revenue beat, fiscal Q4 adjusted earnings were a loss of $0.39 per share, missing the $0.09 loss expected by analysts. Applied Digital also continues to report a negative net margin and negative return on equity, underscoring the costs and execution risks associated with its expansion. Applied Digital Quarterly Earnings Report
• Negative Sentiment: The company’s reliance on debt and additional financing to build campuses leaves investors exposed to higher interest costs, dilution or execution risk if AI tenants delay deployments. This weak profitability and balance-sheet concern partly offset the strong backlog and revenue growth.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on APLD shares. Craig Hallum lifted their target price on shares of Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a report on Tuesday, June 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a report on Tuesday, July 21st. Roth Capital restated a “buy” rating and set a $65.00 price target on shares of Applied Digital in a research report on Thursday, April 23rd. Wall Street Zen cut shares of Applied Digital from a “hold” rating to a “sell” rating in a report on Saturday, April 11th. Finally, Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a research report on Tuesday, June 9th. Three research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $67.15.

Insider Transactions at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total value of $432,375.00. Following the sale, the director owned 208,378 shares of the company’s stock, valued at approximately $7,207,795.02. This trade represents a 5.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 9.50% of the company’s stock.

Hedge Funds Weigh In On Applied Digital

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Federation des caisses Desjardins du Quebec increased its stake in shares of Applied Digital by 28.4% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 3,069 shares of the company’s stock worth $75,000 after purchasing an additional 678 shares in the last quarter. Truvestments Capital LLC lifted its stake in Applied Digital by 26.4% in the 4th quarter. Truvestments Capital LLC now owns 3,476 shares of the company’s stock valued at $85,000 after buying an additional 726 shares in the last quarter. State of Wyoming boosted its holdings in Applied Digital by 37.4% in the 4th quarter. State of Wyoming now owns 3,326 shares of the company’s stock worth $82,000 after buying an additional 905 shares during the last quarter. Newbridge Financial Services Group Inc. boosted its holdings in Applied Digital by 40.0% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 3,500 shares of the company’s stock worth $80,000 after buying an additional 1,000 shares during the last quarter. Finally, McMillan Office Inc. purchased a new stake in Applied Digital during the 4th quarter worth approximately $25,000. 65.67% of the stock is owned by hedge funds and other institutional investors.

About Applied Digital

Applied Digital (NASDAQ: APLD) is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital’s modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.