Q2 EPS Forecast for Applied Digital Reduced by Analyst

Applied Digital Corporation (NASDAQ:APLD) – Equities research analysts at Northland Securities cut their Q2 2027 earnings estimates for Applied Digital in a note issued to investors on Wednesday, October 7th. Northland Securities analyst M. Grondahl now anticipates that the company will post earnings per share of ($0.25) for the quarter, down from their previous forecast of ($0.09). Northland Securities has an “Outperform” rating and a $82.00 price objective on the stock. The consensus estimate for Applied Digital’s current full-year earnings is ($1.09) per share. Northland Securities also issued estimates for Applied Digital’s Q3 2027 earnings at ($0.24) EPS, Q4 2027 earnings at ($0.20) EPS and FY2027 earnings at ($1.50) EPS.

Applied Digital (NASDAQ:APLD) last issued its quarterly earnings data on Wednesday, October 7th. The company reported ($0.01) EPS for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.29. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The business had revenue of $300.39 million during the quarter, compared to analysts’ expectations of $116.29 million. During the same period last year, the company posted ($0.03) EPS. The business’s revenue was up 367.8% on a year-over-year basis.

Several other research analysts have also commented on APLD. Citigroup reiterated a “market outperform” rating on shares of Applied Digital in a research report on Thursday. Morgan Stanley set a $41.00 price objective on Applied Digital and gave the stock an “equal weight” rating in a research note on Friday. Needham & Company LLC decreased their price objective on Applied Digital from $83.00 to $70.00 and set a “buy” rating on the stock in a research report on Thursday, October 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Digital in a research report on Tuesday, July 21st. Finally, Wall Street Zen lowered Applied Digital from a “sell” rating to a “strong sell” rating in a research note on Sunday, August 30th. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $62.25.

Applied Digital Stock Down 1.8%

Shares of NASDAQ APLD opened at $23.25 on Tuesday. The firm’s 50-day moving average price is $26.87 and its 200-day moving average price is $32.48. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 3.90. The stock has a market capitalization of $7.03 billion, a price-to-earnings ratio of -14.18 and a beta of 5.99. Applied Digital has a 12-month low of $19.00 and a 12-month high of $50.72.

Institutional Investors Weigh In On Applied Digital

Hedge funds and other institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC boosted its stake in shares of Applied Digital by 42.6% during the 3rd quarter. GAMMA Investing LLC now owns 2,983 shares of the company’s stock worth $73,000 after purchasing an additional 891 shares during the period. CoreCap Advisors LLC grew its holdings in Applied Digital by 246.6% during the 3rd quarter. CoreCap Advisors LLC now owns 2,194 shares of the company’s stock valued at $53,000 after purchasing an additional 1,561 shares during the last quarter. Valeo Financial Advisors LLC grew its holdings in Applied Digital by 6.7% during the 3rd quarter. Valeo Financial Advisors LLC now owns 12,343 shares of the company’s stock valued at $301,000 after purchasing an additional 773 shares during the last quarter. Two Seas Capital LP purchased a new stake in Applied Digital in the 3rd quarter worth about $1,218,000. Finally, Envestnet Asset Management Inc. raised its position in Applied Digital by 4.7% in the 2nd quarter. Envestnet Asset Management Inc. now owns 13,333 shares of the company’s stock worth $497,000 after purchasing an additional 596 shares during the period. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Insider Buying and Selling

In other Applied Digital news, Director Richard Nottenburg sold 75,000 shares of Applied Digital stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the completion of the transaction, the director directly owned 133,378 shares of the company’s stock, valued at $4,154,724.70. The trade was a 35.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 9.50% of the stock is owned by insiders.

Trending Headlines about Applied Digital

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

• Positive Sentiment: Applied Digital has approximately $36 billion in contracted revenue and plans to bring more than 600 megawatts of capacity online over the next 12 months, more than double the 250 megawatts added during the prior year. The commitments support the long-term growth case for its AI data-center platform. Applied Digital Wants to Add 600 Megawatts in a Year. Can It Pay for It?
• Positive Sentiment: Recent coverage highlighted 322% year-over-year revenue growth to $341.9 million in fiscal first-quarter 2027, along with the company’s expanding AI-campus pipeline and contracted backlog. These figures reinforce the demand outlook, even though investors remain focused on execution and financing. Applied Digital Ends the Quarter With $36 Billion in Contracted Revenue as AI Moat Widens
• Neutral Sentiment: Northland Securities maintained an Outperform rating and an $82 price target, but its analyst reduced estimates for Q2, Q3 and Q4 fiscal 2027 and cut the full-year 2027 forecast to a $1.50 per-share loss from a $0.44 loss. The combination suggests long-term confidence but weaker near-term profitability expectations.
• Negative Sentiment: The central concern is how Applied Digital will finance the construction of data centers before tenants begin paying. Coverage points to heavy capital requirements, a debt-to-equity ratio of 3.90 and widening losses, creating dilution, refinancing and execution risks despite the large contracted-revenue figure. What Could Derail Applied Digital Stock?
• Negative Sentiment: Analyst commentary also emphasized that soaring AI infrastructure revenue is being offset by widening losses and substantial debt. With negative earnings and an expected current-year loss, investors appear to be applying a discount until the company demonstrates that its expansion can generate sustainable cash flow. Should Investors Hold or Fold APLD Stock After Its Q1 Earnings Miss?

About Applied Digital

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.