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

Applied Digital (NASDAQ:APLD) posted its earnings results on Wednesday. The company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.30) by $0.29, FiscalAI reports. Applied Digital had a negative return on equity of 16.42% and a negative net margin of 37.78%.The firm had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. During the same quarter in the prior year, the business posted ($0.03) earnings per share. The business’s quarterly revenue was up 367.8% on a year-over-year basis.

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

• Contracted growth remains substantial: Applied Digital reported approximately $36 billion of contracted revenue across five campuses and expects to place more than 600 megawatts into service over the next 12 months, versus 250 megawatts in the prior 12-month period.
• The company expects roughly 250 megawatts of expansion leases to be executed by year-end at materially higher pricing, potentially including lease rates more than 15% above prior agreements and longer durations.
• Execution is advancing in North Dakota, with 250 megawatts of critical IT capacity fully ready for service at Polaris Forge 1 and total North Dakota capacity expected to reach 300 megawatts by year-end. A 1,200-megawatt power purchase agreement with Base Electron is expected to support future expansion beginning in 2030.
• Financing conditions improved for the company’s projects: Applied Digital issued $1.59 billion of senior secured notes at a 7% coupon, below the 9.25% coupon on its earlier Polaris Forge 1 debt, and said investment-grade tenants could provide access to lower-cost project and bond financing.
• Headline profitability remains weak: the company reported a $221 million GAAP net loss attributable to common stockholders, or $0.76 per share, while ending the quarter with approximately $6.4 billion of debt against $2.9 billion of cash and $0.7 billion of restricted cash.

Applied Digital Stock Down 3.0%

Shares of APLD traded down $0.71 during midday trading on Thursday, reaching $23.10. 39,273,157 shares of the stock were exchanged, compared to its average volume of 22,786,891. The company has a current ratio of 4.01, a quick ratio of 4.01 and a debt-to-equity ratio of 2.88. The company’s 50 day moving average is $27.15 and its two-hundred day moving average is $32.54. Applied Digital has a 52 week low of $19.00 and a 52 week high of $50.72. The company has a market capitalization of $6.73 billion, a P/E ratio of -25.69 and a beta of 5.99.

Analyst Upgrades and Downgrades

APLD has been the topic of several analyst reports. B. Riley Financial reiterated a “buy” rating and issued a $75.00 price objective (up from $66.00) on shares of Applied Digital in a report on Monday, August 3rd. Wall Street Zen cut shares of Applied Digital from a “sell” rating to a “strong sell” rating in a report on Sunday, August 30th. Morgan Stanley lifted their target price on Applied Digital from $36.50 to $37.50 and gave the stock an “equal weight” rating in a report on Thursday, August 6th. Zacks Research cut Applied Digital from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 26th. Finally, Citigroup restated a “market outperform” rating on shares of Applied Digital in a research note on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Applied Digital has an average rating of “Moderate Buy” and an average price target of $60.27.

Insider Transactions at Applied Digital

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of the business’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total value of $2,336,250.00. Following the completion of the transaction, the director directly owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 9.50% of the stock is owned by company insiders.

More Applied Digital News

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

• Positive Sentiment: Fiscal Q1 2027 revenue surged approximately 322% year over year to $341.9 million, substantially exceeding analyst expectations near $111 million. Adjusted revenue was reported at about $300.4 million, while the adjusted loss of $0.01 per share was far better than estimates for a loss of roughly $0.27-$0.30. Applied Digital revenue soars as AI data center demand drives growth
• Positive Sentiment: Management said AI factory expansion is accelerating, with plans targeting more than 600 megawatts of additional capacity. The company also delivered another 75 MW at Polaris Forge 1, bringing live campus capacity to 250 MW. APLD Q1 Earnings Call Focuses on AI Factory Expansion
• Positive Sentiment: Applied Digital reported approximately 1.41 GW of leased critical IT load and about $36 billion in contracted revenue over initial lease terms. Wells Fargo said the roughly 1.4-GW contracted buildout remains on schedule and raised its outlook, viewing financing and additional leasing as potential catalysts. APLD Stock Gets Target Hike From Wells Fargo Post Earnings
• Positive Sentiment: The company secured access to up to 1 GW of potential power capacity in Finland for a European AI campus, expanding its long-term growth pipeline and helping address the industry’s shortage of grid-connected power. Applied Digital climbs on securing 1GW power site
• Neutral Sentiment: Analyst views remain divided. Needham reduced its price target from $83 to $70 while maintaining a Buy rating, and another model trimmed fair value from $68.35 to $65.37, reflecting both confidence in AI contracts and concern about funding conditions. Applied Digital stock price target lowered despite solid Q1 earnings
• Negative Sentiment: GAAP net loss widened to $184.1 million, or $0.82 per share, as operating costs, interest expense and fair-value losses increased alongside expansion spending. Debt totaled approximately $6.4 billion versus $3.7 billion in cash, cash equivalents and restricted cash. Applied Digital’s revenue soars, loss widens
• Negative Sentiment: Investors remain concerned that building the contracted capacity will require substantial borrowing or equity issuance. Higher Treasury yields are also pressuring financing-dependent data-center stocks, contributing to the stock’s decline despite the earnings beat.

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.