Applied Digital (NASDAQ:APLD) Trading 10.4% Higher on Better-Than-Expected Earnings

Applied Digital Corporation (NASDAQ:APLD) shares were up 10.4% on Wednesday following a better than expected earnings announcement. The company traded as high as $29.39 and last traded at $27.79. Approximately 36,280,516 shares changed hands during mid-day trading, an increase of 35% from the average daily volume of 26,936,670 shares. The stock had previously closed at $25.18.

The company reported $0.09 EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.22. The business had revenue of $108.55 million during 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%.

More Applied Digital News

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

• Positive Sentiment: Q3 beat: Applied Digital reported $0.09 EPS vs. consensus -$0.13 and revenue of $108.6M vs. ~$78.5M, a clear surprise that underpins the stock rally. Press Release
• Positive Sentiment: Demand tailwinds: Reuters notes the revenue beat was driven by steady enterprise demand for data-center colocation and services supporting generative AI workloads, signaling durable top-line momentum. Applied Digital beats quarterly revenue estimates
• Neutral Sentiment: Operational update & results filing: GlobeNewswire release summarizes the quarter and operational progress on the company’s AI-focused campuses and capacity buildouts—useful for tracking execution and future revenue ramps. Applied Digital Reports Fiscal Third Quarter 2026 Results
• Neutral Sentiment: Pre-earnings positioning and sentiment: previews and analyst pieces flagged Q3 as a binary event and helped position momentum into the print; short/inverse product interest has risen in recent days. Earnings preview
• Negative Sentiment: Margin & profitability concerns: despite the beat, Applied Digital reported a negative net margin (~-43%) and negative ROE; profitability remains weak which keeps valuation fragile. Press Release
• Negative Sentiment: Rising debt & interest costs: multiple analyst pieces warn that rapid expansion and higher interest expense could outpace cash flow, pressuring margins and execution risk on the remaining buildout commitments. Can APLD Navigate Rising Interest Costs?
• Negative Sentiment: Geopolitical & supply risks: coverage flagged supply-chain exposure tied to geopolitical tensions (e.g., Iran war) that could disrupt equipment deliveries and timelines for capacity ramps. Balance Debt Costs

Analysts Set New Price Targets

APLD has been the subject of a number of research analyst reports. Arete Research initiated coverage on shares of Applied Digital in a research report on Wednesday, January 7th. They set a “buy” rating for the company. Needham & Company LLC reaffirmed a “buy” rating and set a $41.00 price objective on shares of Applied Digital in a research report on Thursday, January 8th. Wall Street Zen raised shares of Applied Digital from a “sell” rating to a “hold” rating in a research report on Saturday, January 10th. Texas Capital raised shares of Applied Digital to a “strong-buy” rating in a research report on Tuesday, January 20th. Finally, Roth Mkm reaffirmed a “buy” rating on shares of Applied Digital in a research report on Tuesday, February 17th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $37.00.

Insider Activity

In other Applied Digital news, Director Douglas S. Miller sold 10,000 shares of the company’s stock in a transaction dated Monday, January 12th. The shares were sold at an average price of $38.54, for a total transaction of $385,400.00. Following the sale, the director directly owned 200,859 shares of the company’s stock, valued at approximately $7,741,105.86. This represents a 4.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Wes Cummins sold 165,000 shares of the company’s stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $36.42, for a total transaction of $6,009,300.00. Following the sale, the chief executive officer directly owned 4,176,329 shares in the company, valued at $152,101,902.18. This represents a 3.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 244,593 shares of company stock valued at $9,003,278 over the last three months. 9.50% of the stock is owned by corporate insiders.

Institutional Trading of Applied Digital

Several large investors have recently added to or reduced their stakes in the company. Hsbc Holdings PLC bought a new stake in Applied Digital during the fourth quarter worth about $29,510,000. Osbon Capital Management LLC bought a new stake in Applied Digital during the fourth quarter worth about $28,000. Spear Advisors LLC bought a new stake in Applied Digital during the fourth quarter worth about $7,191,000. NWF Advisory Services Inc. grew its stake in Applied Digital by 38.1% during the fourth quarter. NWF Advisory Services Inc. now owns 17,160 shares of the company’s stock worth $421,000 after buying an additional 4,730 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd bought a new stake in Applied Digital during the fourth quarter worth about $4,328,000. 65.67% of the stock is owned by institutional investors.

Applied Digital Price Performance

The company has a debt-to-equity ratio of 1.79, a current ratio of 4.82 and a quick ratio of 4.82. The company’s 50 day moving average price is $29.53 and its 200 day moving average price is $29.48. The firm has a market capitalization of $7.77 billion, a P/E ratio of -51.46 and a beta of 7.25.

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.