Applied Digital (NASDAQ:APLD) Announces Quarterly Earnings Results

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

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 Performance

Shares of APLD 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 cap of $7.54 billion, a PE ratio of -35.65 and a beta of 5.67. The stock has a 50-day moving average of $38.54 and a 200-day moving average of $34.54. Applied Digital has a one year low of $9.79 and a one year high of $50.72.

Applied Digital News Summary

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.

Insider Buying and Selling at Applied Digital

In related news, Director Richard N. Nottenburg sold 12,500 shares of Applied Digital stock in a transaction that occurred on Thursday, April 30th. The shares were sold at an average price of $34.59, for a total transaction of $432,375.00. Following the transaction, the director owned 208,378 shares of the company’s stock, valued at $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 this link. 9.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Digital

Large investors have recently bought and sold shares of the company. McMillan Office Inc. acquired a new stake in Applied Digital in the fourth quarter worth $25,000. Ameriflex Group Inc. acquired a new position in shares of Applied Digital in the 4th quarter valued at $25,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Applied Digital in the 4th quarter valued at $27,000. Larson Financial Group LLC increased its position in shares of Applied Digital by 56,450.0% in the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company’s stock valued at $26,000 after buying an additional 1,129 shares in the last quarter. Finally, Strive Financial Group LLC acquired a new stake in Applied Digital during the 4th quarter worth $31,000. Institutional investors own 65.67% of the company’s stock.

Analyst Ratings Changes

A number of research firms have recently weighed in on APLD. Citizens Jmp boosted their target price on Applied Digital from $40.00 to $60.00 and gave the stock a “market outperform” rating in a research report on Thursday, May 21st. Morgan Stanley assumed coverage on Applied Digital in a report on Thursday. They issued a “buy” rating and a $36.50 price target on the stock. Lucid Cap Mkts upgraded Applied Digital to a “strong-buy” rating in a research report on Wednesday, May 27th. B. Riley Financial reissued a “buy” rating and set a $66.00 price objective (up from $53.00) on shares of Applied Digital in a report on Wednesday, May 27th. Finally, Craig Hallum upped their target price on shares of Applied Digital from $75.00 to $79.00 and gave the company a “buy” rating in a research report on Tuesday, June 9th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $67.15.

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.