Applied Digital (APLD) Announces Fiscal First Quarter 2026 Earnings Results

Applied Digital Corporation (APLD) today announced its financial results for the most recent quarter, showcasing a strong performance that exceeded expectations. The company reported earnings per share of -$0.11, beating the analyst estimate of -$0.13, while revenue reached $64.2 million, significantly surpassing the forecast of $49.9 million. This marks a notable increase in both earnings and revenue, highlighting APLD’s robust growth trajectory in a competitive market.

Key Highlights

• Revenue Growth: Revenues for Q1 2026 reached $64.2 million, an 84% increase from the previous year.
• Lease Agreements: Finalized a new lease with CoreWeave for an additional 150 MW at Polaris Forge 1, bringing total anticipated lease revenue to approximately $11 billion.
• Campus Development: Nearing completion of a 100 MW building at Polaris Forge 1 and broke ground on Polaris Forge 2, which is expected to scale to 1 GW.
• Funding Milestones: Drew $112.5 million from a $5 billion preferred equity facility and secured $50 million for Polaris Forge 2.
• Management Outlook: CEO Wes Cummins emphasized the company’s strategic position to serve major technology firms amid a projected $350 billion investment in AI deployment.

Summary

Applied Digital Corporation reported strong financial results for the fiscal first quarter of 2026, with revenues soaring to $64.2 million, marking an 84% increase year-over-year. The company also highlighted significant operational milestones, including the finalization of a lease agreement with CoreWeave for an additional 150 MW at its Polaris Forge 1 campus, which is now fully leased. This agreement is expected to generate approximately $11 billion in lease revenue over the next 15 years. The company is also progressing on its Polaris Forge 2 campus, which is designed to accommodate up to 1 GW of capacity, with initial operations expected to begin in 2026.

CEO Wes Cummins expressed confidence in the company’s growth trajectory, stating, “We feel this third lease validates our platform and execution, positioning Applied Digital as a trusted strategic partner to the world’s largest technology companies.” He noted the increasing demand for AI infrastructure, with hyperscalers projected to invest around $350 billion this year. The company is focused on securing capital efficiently and expanding its operations across the U.S., aiming for a projected annualized NOI run rate of approximately $500 million once Polaris Forge 1 is fully operational.

Applied Digital Corporation (APLD) has experienced a remarkable surge in its stock price, with a staggering 450% increase over the past six months, reflecting a growing investor interest in the company. This momentum is underscored by a phenomenal 203% rise over the last three months and a striking 100.86% jump in just the past month. However, despite these impressive price changes, the company’s fundamental metrics tell a more complex story. APLD currently has a negative price-to-earnings ratio of -25.84, indicating that it is not yet profitable, and its net profit margin stands at a concerning -1.07%. Additionally, the return on invested capital is also negative at -18.91%, suggesting that the company is struggling to generate returns on its investments. On a brighter note, APLD has demonstrated robust revenue growth, with a two-year compound annual growth rate (CAGR) of 97.25%, hinting at strong operational potential. As investors weigh these contrasting signals, the future trajectory of APLD will depend on its ability to convert this revenue growth into sustainable profitability.

Applied Digital Corporation designs, develops, and operates digital infrastructure solutions and cloud services high-performance computing (HPC) and artificial intelligence industries in North America. It operates through three segments: Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The company offers infrastructure services to crypto mining customers; and GPU computing solutions for critical workloads related to AI, machine learning, and other HPC tasks. It also engages in the designing, constructing, and managing of data centers to support HPC applications. The company was formerly known as Applied Blockchain, Inc. and changed its name to Applied Digital Corporation in November 2022. Applied Digital Corporation is based in Dallas, Texas.