Applied Digital (NASDAQ:APLD) Releases Earnings Results, Beats Expectations By $0.29 EPS

Applied Digital (NASDAQ:APLD) posted its quarterly earnings data on Wednesday. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.30) by $0.29, FiscalAI reports. The business had revenue of $300.39 million for the quarter, compared to analysts’ expectations of $116.29 million. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.

Applied Digital Price Performance

Shares of Applied Digital stock traded down $1.53 on Wednesday, reaching $23.81. The stock had a trading volume of 46,618,839 shares, compared to its average volume of 22,696,803. The business’s 50 day moving average is $27.14 and its two-hundred day moving average is $32.56. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88. Applied Digital has a 1 year low of $19.00 and a 1 year high of $50.72. The company has a market cap of $6.94 billion, a P/E ratio of -26.75 and a beta of 5.99.

Applied Digital News Summary

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

• Positive Sentiment: Revenue significantly exceeded expectations. Fiscal first-quarter revenue rose 322% year over year to approximately $341.9 million, well above consensus estimates near $116 million. The company also reported adjusted EPS of $(0.01), ahead of the $(0.30) consensus estimate. Applied Digital’s revenue soars, loss widens on growing AI investments
• Positive Sentiment: Demand and contracted backlog remain substantial. Applied Digital said it has approximately 1.41 gigawatts of leased critical IT load across five campuses and roughly $36 billion in contracted revenue over initial lease terms. It also delivered the second 75-megawatt phase of Polaris Forge 1 Building 2, bringing live campus capacity to 250 megawatts. Applied Digital Reports Fiscal First Quarter 2027 Results
• Positive Sentiment: International expansion and options activity provided additional bullish signals. The company secured access to up to 1 GW of potential power capacity in Finland for a future AI campus, while traders purchased substantially more call options than usual. Applied Digital Secures Up to 1 GW of Potential Power Capacity in Finland
• Neutral Sentiment: The stock remains heavily shorted. About 20.9% of the float was sold short ahead of the earnings report, increasing the potential for volatility or a short squeeze but also reflecting significant investor skepticism.
• Negative Sentiment: Profitability and balance-sheet concerns remain central. GAAP net loss widened to about $184 million, or $0.82 per share, as Applied Digital increased AI and data-center investments. Cash and restricted cash totaled $3.7 billion versus $6.4 billion of debt, highlighting financing and execution risks. Insider activity also showed selling rather than purchases. Applied Digital Revenue Jumps 322% to $341.9 Million

Analysts Set New Price Targets

A number of analysts recently issued reports on APLD shares. Northland Securities set a $82.00 price objective on shares of Applied Digital and gave the stock an “outperform” rating in a report on Wednesday, June 17th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research note on Tuesday, July 21st. Morgan Stanley raised their target price on Applied Digital from $36.50 to $37.50 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Citigroup restated a “market outperform” rating on shares of Applied Digital in a research note on Monday, August 3rd. Finally, B. Riley Financial reiterated a “buy” rating and set a $75.00 price target (up from $66.00) on shares of Applied Digital in a research note on Monday, August 3rd. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Applied Digital has an average rating of “Moderate Buy” and an average price target of $60.88.

Insider Activity at Applied Digital

In related news, Director Richard Nottenburg sold 75,000 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $31.15, for a total value of $2,336,250.00. Following the sale, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. This trade represents a 35.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 9.50% of the stock is owned by company insiders.

Applied Digital Company Profile

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.