Applied Digital (NASDAQ:APLD) Issues Quarterly Earnings Results, Misses Estimates By $0.23 EPS

Applied Digital (NASDAQ:APLD) issued its earnings results on Wednesday. The company reported ($0.36) earnings per share for the quarter, missing the consensus estimate of ($0.13) by ($0.23), RTT News reports. The business had revenue of $108.55 million for the quarter, compared to analyst estimates of $78.47 million. Applied Digital had a negative net margin of 43.49% and a negative return on equity of 13.53%. Applied Digital’s revenue was up 139.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.08) earnings per share.

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

• Applied Digital has its first 100 MW direct‑to‑chip liquid‑cooled data center online, says PF1 and PF2 construction are on time and on budget, and the company has roughly ~1 GW of capacity under construction with Delta Forge One (300 MW) broken ground and initial operations expected mid‑2027.
• Quarter results show total revenue of $126.6 million (up 139% QoQ) and adjusted EBITDA of $44.1 million, but GAAP net loss was $100.9 million largely driven by a $59.7 million non‑cash cloud impairment; the company finished the quarter with $2.1 billion cash versus $2.7 billion of debt and no significant maturities in the next two years.
• Management reports significant financing progress — a disclosed $2.15 billion senior secured note offering, most equity/debt for the first two campuses completed, and a CoreWeave lease restructuring (SPV rated A3 with a $50M letter of credit) that management says de‑risks 250 MW and should help lower future borrowing costs.
• The company is separating Applied Digital Cloud via a proposed combination with Exo to form Chronos Scale (Applied to be majority holder) to pursue independent capital and growth; cloud revenues were consolidated this quarter but will be excluded from the company’s non‑GAAP metrics going forward.
• The crypto/data‑center hosting segment remains a high‑return business, producing $37.5 million in revenue and $13.9 million in operating profit this quarter, which management highlights as the company’s highest return on assets.

Applied Digital Trading Up 10.4%

Shares of APLD stock traded up $2.61 during mid-day trading on Wednesday, hitting $27.79. The company’s stock had a trading volume of 38,729,186 shares, compared to its average volume of 26,997,438. The company’s fifty day simple moving average is $29.29 and its 200-day simple moving average is $29.47. The company has a market cap of $7.77 billion, a PE ratio of -51.46 and a beta of 7.25. The company has a debt-to-equity ratio of 1.79, a quick ratio of 4.82 and a current ratio of 4.82. Applied Digital has a 52 week low of $3.31 and a 52 week high of $42.27.

More Applied Digital News

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

• Positive Sentiment: Revenue topped expectations and management said AI data-center demand is ramping, a primary driver behind the stock’s gains. Applied Digital beats quarterly revenue estimates
• Positive Sentiment: Non-GAAP results and company press release showed stronger-than-forecast operating performance for the quarter, supporting the bullish reaction. Applied Digital Reports Fiscal Third Quarter 2026 Results
• Positive Sentiment: Unusually large options flow — traders bought roughly 131,134 call contracts — points to speculative bullish positioning that can amplify upside short-term (and increase volatility).
• Neutral Sentiment: Heavy media and analyst coverage (earnings previews and after-hours mover writeups) is driving attention and volume into the stock; this can sustain momentum but also increase short-term noise. After-hours movers: Applied Digital
• Neutral Sentiment: Pre-earnings positioning and previews had already pushed interest in APLD higher into the print—some moves reflect positioning rather than fundamentals. Earnings preview: Is APLD a buy now?
• Negative Sentiment: On a GAAP basis the company reported a larger loss than some estimates, which keeps questions about profitability and the path to sustained positive net income alive. APLD reports Q3 loss, tops revenue estimates
• Negative Sentiment: Rising debt and interest-cost concerns tied to an aggressive 500MW+ AI buildout are highlighted by multiple analysts as potential margin and liquidity risks—these remain the main longer-term headwinds. Can APLD navigate rising interest costs?

Insider Buying and Selling

In related news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $38.54, for a total value of $385,400.00. Following the completion of the transaction, the director directly owned 200,859 shares in the company, valued at approximately $7,741,105.86. The trade was a 4.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Wes Cummins sold 165,000 shares of the firm’s stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $36.42, for a total value of $6,009,300.00. Following the sale, the chief executive officer owned 4,176,329 shares in the company, valued at $152,101,902.18. The trade was a 3.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 244,593 shares of company stock worth $9,003,278 in the last 90 days. 9.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Digital

Several institutional investors and hedge funds have recently made changes to their positions in APLD. McMillan Office Inc. bought a new position in Applied Digital during the 4th quarter worth approximately $25,000. Ameriflex Group Inc. purchased a new position in shares of Applied Digital during the 4th quarter valued at $25,000. Northwestern Mutual Wealth Management Co. purchased a new stake in Applied Digital during the 2nd quarter valued at approximately $26,000. Larson Financial Group LLC lifted its stake in Applied Digital by 56,450.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock worth $26,000 after purchasing an additional 1,129 shares in the last quarter. Finally, Mcguire Capital Advisors Inc. bought a new position in shares of Applied Digital during the 4th quarter valued at about $27,000. Institutional investors own 65.67% of the company’s stock.

Analyst Ratings Changes

Several research analysts have recently issued reports on APLD shares. Northland Securities set a $56.00 price objective on shares of Applied Digital in a research note on Wednesday, January 28th. Lake Street Capital restated a “buy” rating and set a $45.00 target price on shares of Applied Digital in a report on Tuesday, December 30th. Freedom Capital raised shares of Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 6th. Texas Capital raised Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 20th. Finally, Citigroup reissued an “outperform” rating on shares of Applied Digital in a research report on Wednesday, January 28th. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $37.00.

Applied Digital Company Profile

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.