Applied Digital za poslední tři měsíce klesla o 44,3 %, ale stále se obchoduje za 13,1násobek tržeb. Firma má kontrahovanou dlouhodobou hodnotu nájmů 36 miliard USD, zatímco tržby za posledních 12 měsíců činily 0,6 miliardy USD.
SHENZHEN, CHINA - JULY 23: In this photo illustration, a smartphone displays the logo of Applied Digital Corporation (NASDAQ: APLD), an American company focused on designing, developing and operating digital infrastructure for high-performance computing and artificial intelligence applications, in front of a screen showing the company's latest stock market chart on July 23, 2026 in Shenzhen, Guangdong Province, China. (Photo illustration by Cheng Xin/Getty Images)
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This article was written by Doug Nathman, with research by his team at Trefis.
Applied Digital (APLD) has declined 44.3% during the last three months as the S&P 500 returned 1.4%, and, at roughly $26.50, the stock is currently around half its 52-week high. Yet it trades at 13.1 times sales against 3.2 for the S&P 500. Both statements are simultaneously true because the share price has little connection to the business visible today.
Why Does Applied Digital Continue To Seem Expensive?Begin with what is operational. Trailing twelve-month revenue stood at $0.6 billion, and, according to management, the fiscal Q4 2026 HPC data center financials mainly reflect only the first 100 megawatts brought online at Polaris Forge 1, with another 75 megawatts delivered there afterward. Contracted critical IT load across its campuses totals 1.41 gigawatts.
Compare that with $36 billion in contracted long-term lease value, rising from $7 billion a year earlier. That backlog is what you are paying for. The underlying business is expanding quickly, while the income statement remains a construction site with only the first meters operating.
Can Applied Digital Truly Build All Of It?Management identifies two limitations: when utility power becomes available and its internal supply chain. It has quantified the latter at roughly 700 megawatts of critical IT load annually, compared with a 1.5 gigawatt build it has contracted to complete within a couple of years. By its own acknowledgment, that slightly exceeds its limit.
The track record suggests otherwise. The first Polaris Forge 1 building required about 24 months from construction commencement to service, while the second took under 12. Management states that every one of its construction projects is currently on time and on budget.
The power needed to enable the next phase lies further ahead. The company’s arrangement with Base Electron encompasses roughly 1.2 gigawatts of natural gas-fired generation in the Dakotas, with that initial capacity arriving in 2029 and 2030.
What Happens If The Schedule Slips?You finance the gap while it persists, using the balance sheet instead of earnings. Operating margin is sharply negative at -35.1%, versus 18.5% for the S&P 500, meaning the company overall still loses money from operations. Debt stands at 71.6% of market value compared with 19.8% for the market, although cash represents 16.0% of total assets versus 6.6%.
A pricing issue sits beneath the backlog. The three latest leases, spanning 810 megawatts, prompted analyst questions about yields lower than peers, while management says its lease rates are toward the upper end of the range for comparable transactions and have risen since those talks. Roughly $20 billion of the $36 billion originated from those three, each signed with the same high investment-grade hyperscaler.
The next meaningful indicator is whether the two expansion leases under negotiation, approximately 100 and 150 megawatts, are completed at the materially higher rates management anticipates.
So, what are you purchasing? A substantial contracted revenue stream, a construction program progressing slightly ahead of the company’s stated capacity, and an income statement that will not determine which prevails for another year or two. Notably, though, given the stock’s nearly 90% twelve-month return and a 35% three-month decline, this is a rather volatile bet.
Applied Digital má smlouvy za 36 miliard USD, ale do fiskálního roku 2029 dorazí méně než 2 miliardy USD nájemného. K dnešku je zprovozněno jen 175 MW z nasmlouvané kapacity.
On paper, Applied Digital (APLD +1.77%) has already sold the next 15 years. The artificial intelligence (AI) data center builder has signed leases covering about 1,410 megawatts (MW) of critical IT load (the power available to tenants' computing equipment) across five campuses. Those contracts add up to about $36 billion over their initial 15-year base terms.
And yet the company generated just $611.3 million of revenue in the fiscal year that ended May 31 -- and posted a $249.2 million net loss attributable to common shareholders.
As of this writing, the growth stock sits near $26, well below the $50.73 it touched over the past year, and the market values the company at about $7.7 billion.
The difference is timing. Applied Digital's leases don't pay until the buildings are finished, powered, and handed over. And only 175 MW of the contracted capacity was live as of the company's late-July update.
Image source: Getty Images.
A $36 billion lease bookThe five campuses (three in North Dakota and two in the South) are leased to CoreWeave and two investment-grade hyperscalers. Each lease runs 15 years on a take-or-pay basis, meaning the tenant owes the rent whether or not it uses the space.
Today's business, however, is far smaller than the contracts suggest. Revenue jumped 167% year over year in fiscal 2026, to $611.3 million, but only $99.8 million of that was base rent from the AI campuses. Most of the rest came from crypto mining hosting and from reimbursed work fitting out tenants' buildings. And the net loss widened slightly year over year as overhead and stock-based compensation climbed.
"We believe delivering on time is a genuine differentiator in this industry," CEO Wes Cummins said in the company's fiscal fourth-quarter update. "We brought Polaris Forge 1's first 100 MW online on schedule and have now scaled total live capacity at the campus to 175 MW."
When does the rent arrive?Applied Digital begins recognizing rental revenue when a property is ready for its intended use and the tenant takes possession. In other words, a signed lease on an unfinished building produces no rental revenue at all.
The annual report even warns that significant construction delays can, in certain circumstances, give tenants the right to terminate.
The company's own schedule of minimum lease payments shows how gradually the money arrives: the leases call for $451 million in fiscal 2027. Fiscal 2028's figure is $1.45 billion, and fiscal 2029's is $2.25 billion. In other words, less than $2 billion of the 15-year, $36 billion total (about 5%) arrives before fiscal 2029. Payments quintuple across those three years as buildings come online, with deliveries phased from Polaris Forge 2's first buildings in calendar 2026 out to the second half of calendar 2028. Once every campus is delivered, the leases call for about $2.3 billion of rent per year.
That schedule, I'd argue, is the heart of the case. Take-or-pay contracts leave little doubt about who owes the rent, so long as the buildings get built. What's still open is the construction itself, and big builds can slip.
The financing isn't cheapThe construction bill, meanwhile, is due now. Applied Digital's capital expenditures came to $2.87 billion in fiscal 2026, up from about $680 million the year before.
It ended fiscal 2026 with $5.0 billion of debt against $4.2 billion of cash, much of it restricted. The subsidiaries' senior secured notes carry rates from 6.75% to 9.25%.
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Macquarie Asset Management has also funded $1.8 billion of perpetual preferred equity, with the right to invest up to $4.9 billion more, for the North Dakota campuses. But that money isn't free either, since preferred capital collects ahead of common shareholders.
At about $7.7 billion, the market is paying more than 12 times fiscal 2026 sales -- and over three times the annual rent the finished portfolio is contracted to produce. That valuation arguably bakes in years of smooth construction.
It might all go to plan. Management has delivered on schedule so far, and the leases likely remove most of the demand risk a project like this usually carries.
But most of the buildings don't exist yet, and lenders and preferred holders get paid before common shareholders do. I'd avoid buying shares today. If Applied Digital keeps delivering campuses on schedule (management expects Polaris Forge 2's first buildings to begin coming online in calendar 2026), I would take another look.
Applied Digital má 36 miliard USD smluvních výnosů z pronájmu, z toho zhruba 20 miliard USD od jednoho hyperscaleru. Ve fiskálním roce 2026 tvořil jeden HPC zákazník 59 % tržeb z pokračující činnosti.
Key Takeaways Applied Digital has $36B in contracted lease revenues, with roughly $20B tied to one hyperscaler.One HPC customer generated 59% of fiscal 2026 continuing-operations revenues, showing concentration.Long-term take-or-pay leases and expansion with existing customers could help diversify future revenues. Applied Digital (APLD - Free Report) is rapidly expanding its AI data center platform, but its growing reliance on a small group of hyperscalers raises concerns about future revenue concentration.
APLD ended fiscal 2026 with approximately $36 billion of contracted lease revenues across 1.4 gigawatts of critical IT load. However, three recently signed 15-year take-or-pay leases with the same high investment-grade hyperscaler account for roughly $20 billion of contracted revenues. Although these campuses span different states, the contracts increase APLD’s dependence on a single customer.
The concentration is already visible in reported results. During fiscal 2026, one HPC customer accounted for 59% of total revenues from continuing operations, while no other customer represented more than 10%. APLD expects a limited number of hyperscalers to continue accounting for a high percentage of revenues.
This concentration could become a concern if a major customer experiences financial difficulties, reduces equipment usage or discontinues using APLD facilities. Such developments could pressure lease prices, profit margins, revenues and cash flow.
Still, 15-year take-or-pay agreements and investment-grade counterparties provide meaningful protection, while additional expansion leases with two existing investment-grade customers could reduce customer concentration and support more diversified revenue growth. Supporting this outlook, the Zacks Consensus Estimate projects revenues to increase 49.7% year over year in fiscal 2027.
That is why hyperscaler concentration poses a meaningful revenue risk, but long-term contracts and customer diversification efforts provide important safeguards.
How Do CORZ & CRWV Stack Up Against APLD?Core Scientific (CORZ - Free Report) competes with APLD in power-rich, high-density AI infrastructure, where securing capacity and major counterparties is critical. In the second quarter of 2026, CORZ demonstrated strong execution, reaching 437 billable MW and 1.1 GW of contracted capacity, while its AMD deal adds diversification. However, concentrating large capacity with AMD and CoreWeave creates counterparty risk if either reduces commitments. CORZ appears competitive, with execution and power availability as key strengths.
CoreWeave (CRWV - Free Report) contends with APLD through a vertically integrated AI-cloud model spanning GPUs, networking, storage, software and managed inference. CRWV is gaining strong momentum, with second-quarter 2026 revenues rising 112% to $2.6 billion, a $104.2 billion backlog and 1.5 GW of active power. Its expanding customer base helps reduce concentration risk, although exposure to large customers remains a potential weakness. CRWV holds an edge in platform depth and scale but faces higher capital and debt requirements.
APLD’s Share Price Performance, Valuation & EstimatesAPLD shares have returned 3.6% year to date compared with the broader Zacks Finance sector’s 7.4% growth.
APLD’s YTD Price Performance
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From a valuation standpoint, APLD appears overvalued, trading at a trailing 12-month price/book (P/B) ratio of 4.21, above the Financial - Miscellaneous Services industry’s average of 3.05. The company carries a Value Score of F.
APLD’s Valuation
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The fiscal 2027 bottom-line outlook remains challenging, with the consensus estimate currently pegged at a loss of $1.09 per share, representing a 24% decline over the past 30 days. This compares with a loss of 91 cents per share reported in fiscal 2026, highlighting continued pressure on profitability.
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APLD stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akcie Applied Digital za poslední měsíc přidaly asi 8,4 % po zveřejnění výsledků, když tržby ve 4. čtvrtletí meziročně vzrostly o 407 % na 258,7 milionu USD.
It has been about a month since the last earnings report for Applied Digital Corporation (APLD - Free Report) . Shares have added about 8.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Applied Digital Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Applied Digital Q4 Earnings Beat Estimates, Revenues Rise Y/YApplied Digital reported a loss of 39 cents per share in the fourth quarter of fiscal 2026, a deterioration from a loss of 24 cents registered in the year-ago quarter. The figure was wider than the Zacks Consensus Estimate of a loss of 18 cents by 116.67%.
Revenues surged 407% year over year to $258.7 million, driven by the ramp-up of HPC tenant fit-out services at Polaris Forge 1 and continued strength in the Data Center Hosting Business. The figure beat the Zacks Consensus Estimate of $240 million by 7.79%.
APLD's Segment Performance
The Data Center Hosting Business generated $37.3 million in revenues, materially consistent year over year with stable operating conditions, as both Jamestown (106 MW) and Ellendale (180 MW) operated at full capacity as of May 31. The segment generated $12.5 million in operating profit during the quarter, on a reported asset base of $113.8 million, and continues to be the company's highest return on asset business.
The HPC Hosting Business contributed $203 million in revenues during the quarter. This included $152.4 million from tenant fit-out services, $44.1 million related to base rent and $6.5 million related to tenant recoveries. The segment generated an operating profit of $26.2 million. The business now spans five contracted campuses totaling roughly 1.4 gigawatts of critical IT load, following three new leases signed with a single high-investment-grade hyperscaler since the prior quarter.
During the quarter, the company completed the separation of its Cloud Services Business, combining it with Ekso Bionics Holdings to form ChronoScale Holdings Corporation. Applied Digital retained approximately 96% ownership. Reflecting this, the company consolidated ChronoScale revenues of $18.4 million for the quarter. The segment is excluded from the company's non-GAAP results going forward as management evaluates the Data Center Hosting and HPC Hosting businesses as its core operations.
APLD's Operating Details
Services cost of revenues jumped 256% year over year to $193.1 million, primarily reflecting $145.6 million associated with tenant fit-out services for the HPC Hosting Business. Data center rental and other cost of revenues came in at $25.1 million, primarily comprising depreciation and amortization on the first HPC data center at Polaris Forge 1, along with reimbursable tenant recovery expenses.
Selling, general and administrative expenses surged 303% year over year to $165.3 million. The increase was driven by $116.8 million in stock-based compensation tied to accelerated vesting of employee stock awards and grant activity related to the ChronoScale separation, as well as $7.3 million in personnel expenses tied to headcount growth and $5.6 million in professional services expense.
Interest expense net rose 26% year over year to $10.6 million, as a $31.9 million increase in interest expense from new debt arrangements was partially offset by a $30.5 million increase in interest income from higher balances held in interest-bearing demand deposit accounts.
The company recognized a $53.3 million gain on the change in fair value of derivatives, comprising a $69.9 million increase in the value of its Babcock & Wilcox common stock warrant partially offset by a $16.7 million decrease in the fair value of derivative assets tied to preferred units. It also recorded a $4.8 million gain on the change in fair value of investments, reflecting the appreciation of its B&W common stock position. Neither gain was present in the year-ago quarter.
APLD's Balance Sheet and Cash Flows
As of May 31, Applied Digital held cash, cash equivalents and restricted cash of approximately $4.2 billion compared with $2.1 billion as of Feb. 28. Total debt stood at approximately $5 billion compared with $2.7 billion at the end of the third quarter of fiscal 2026, reflecting the closing of $2.15 billion of senior secured notes tied to Polaris Forge 2, along with a new revolving credit facility.
Operating cash flow was positive $89.7 million for the fiscal year ended May 31, 2026, a marked improvement from cash used in operations of $115.4 million in the prior fiscal year, aided by a strong step-up in collections during the fourth quarter.
APLD Offers Positive Outlook
Applied Digital ended the fiscal year with roughly 1.4 gigawatts of contracted critical IT load across five AI Factory campuses, representing approximately $36 billion in total contracted lease revenue, or approximately $86 billion including renewal options. It is actively marketing another 1.7 gigawatts across multiple states, citing robust demand and rising lease rates.
Management is in advanced talks to expand capacity by 100 MW and 150 MW with two existing investment-grade customers, which would lift total capacity to 1.66 gigawatts and add over $6 billion in contracted revenue at current rates. The company is also working with Base Electron to develop roughly 1.2 gigawatts of natural gas fired generation in the Dakotas to support further expansion.
Applied Digital now expects to hit its $1 billion annual net operating income target roughly three years ahead of schedule, with quarterly capex guided at approximately $600 million as construction continues across its campuses.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -27.5% due to these changes.
VGM ScoresCurrently, Applied Digital Corporation has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Applied Digital Corporation has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry PlayerApplied Digital Corporation is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Blackstone Inc. (BX - Free Report) , a stock from the same industry, has gained 7.1%. The company reported its results for the quarter ended June 2026 more than a month ago.
Blackstone Inc. reported revenues of $3.8 billion in the last reported quarter, representing a year-over-year change of +23.7%. EPS of $1.52 for the same period compares with $1.21 a year ago.
Blackstone Inc. is expected to post earnings of $1.36 per share for the current quarter, representing a year-over-year change of -10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -4%.
Blackstone Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Applied Digital ve fiskálním roce 2026 zvýšila tržby o 167 % na 611 milionů USD a snížila zředěnou ztrátu na akcii o 22 %. Firma má pronajatých 1,4 GW kapacity datových center s potenciálními tržbami 36 miliard USD za 15 let.
Applied Digital (APLD -7.65%) stock has been on a roller-coaster ride this year. However, the past few months have been quite painful for this artificial intelligence (AI) infrastructure specialist.
Applied Digital stock has pulled back 45% from the 52-week high it reached almost three months ago. However, a closer look at the company's surging growth and the bright prospects of the AI data center infrastructure market suggests that the recent pullback in this stock could be a buying opportunity.
Let's look at the reasons why.
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The market is underestimating Applied Digital's growth potentialApplied Digital is in the business of designing, building, and operating data centers designed to handle AI and high-performance computing (HPC) workloads. This puts the company right in the middle of a lucrative growth opportunity.
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Market research firm Dell'Oro Group estimates that global spending on AI data centers could exceed $3 trillion by the end of the decade, driven by the need to support the growth in AI workloads in the cloud. What's worth noting is that Dell'Oro has almost doubled its data center capex outlook for 2030 since January 2026.
It won't be surprising to see this estimate move higher in the future, as more companies integrate AI into their operations to unlock productivity gains. A report released by workplace advisory services provider Gallup earlier this year noted that 65% of employees using AI in organizations have reported a jump in productivity.
So, the massive addressable market that Applied Digital is poised to capitalize on could get even bigger in the future. The good news is that the company is positioning itself to capitalize on the tremendous opportunity in this market. The company posted a 167% increase in revenue in fiscal 2026 (ending May 31) to $611 million. Importantly, it also reduced its diluted loss per share by 22%.
Applied Digital's growth rate could accelerate substantially in the future, given its robust lease revenue pipeline. Applied Digital has leased out 1.4 gigawatts (GW) of data center capacity across its five data center campuses. The company estimates that these leases will generate $36 billion in lease revenue across 15 years under the base contractual term.
Importantly, Applied Digital has started delivering the data center capacity, which will help it convert the lease revenue pipeline into actual revenue. The company estimates that it will complete delivery of the entire 1.4 GW of the contracted data center capacity by the second half of 2028. What's more, Applied Digital notes that the renewal options included in these lease contracts could take its potential long-term lease revenue to an impressive $86 billion.
But even if Applied Digital's customers don't exercise the renewal options, which seems quite unlikely amid the booming data center demand, its annual revenue run rate could be around $2 billion over the next 15 years. That's a conservative estimate, as the company is looking to add new data center campuses, in addition to increasing capacity at existing campuses.
So, Applied Digital's top line could jump substantially from its fiscal 2026 levels, and that's precisely what analysts are expecting.
APLD Revenue Estimates for Current Fiscal Year data by YCharts
The terrific top-line growth will send the stock soaringThe $2.72 billion revenue estimate for fiscal 2029 points to a jump of almost 4x in Applied Digital's top line from fiscal 2026 levels. Such impressive growth explains why this AI stock is trading at a relatively expensive 12 times sales, while the U.S. tech sector has an average sales multiple of 7.4.
The good news is that the recent pullback in Applied Digital stock has made it relatively inexpensive to buy right now, as it was trading at over 38 times sales at the end of May. Assuming Applied Digital trades at the U.S. tech sector's average sales multiple after three years and its revenue reaches $2.72 billion in fiscal 2029, its market cap could increase to $20 billion.
That's a potential upside of 156% from current levels. So, investors looking to buy a top growth stock to capitalize on the AI data center boom should consider using the pullback in Applied Digital to buy more shares before it goes on a bull run.
Applied Digital má zhruba 1,4 GW smluvně zajištěného IT workloadu a asi 36 miliard USD ve výnosech z pronájmu, což mu může posílit AI náskok nad WULF a CRWV. Klíčové ale bude včas proměnit přístup k elektřině v provozní kapacitu.
Key Takeaways APLD's power access could strengthen its AI infrastructure edge over WULF & CRWV amid industry constraints.APLD has 1.4 GW of contracted IT load tied to about $36B in lease revenues and 1.2 GW in planned generation.APLD must execute power & campus expansions to translate AI opportunities into expected FY27 revenue growth. Applied Digital (APLD - Free Report) could strengthen its AI infrastructure edge over TeraWulf (WULF - Free Report) and CoreWeave (CRWV - Free Report) by leveraging its access to large-scale, cost-competitive power, a critical constraint and competitive differentiator in the AI data-center market.
APLD has secured roughly 1.4 GW of contracted critical IT load, representing about $36 billion in contracted lease revenues, while its North Dakota strategy is designed to expand access to reliable, low-cost power. The company is also working with Base Electron on approximately 1.2 GW of natural-gas-fired generation, which could unlock additional capacity at existing campuses and support future AI Factory development.
This power position could become increasingly valuable as AI workloads require higher-density infrastructure and the industry faces significant power constraints. APLD has already demonstrated its ability to convert power into operating capacity, bringing 175 MW at Polaris Forge 1 online while continuing to develop additional campuses.
However, the advantage carries execution risks. Base Electron is an independent power producer, meaning APLD does not directly control the project that could provide additional power. Moreover, Applied Digital competes with other power-advantaged developers, making timely conversion of power access into operational AI capacity critical to sustaining its competitive position.
According to the Zacks Consensus Estimate, revenues are projected to grow by 49.7% in fiscal 2027; therefore, the successful execution of APLD’s power and campus expansion plans is crucial for realizing this expected growth. Overall, the company’s power advantage could strengthen its AI edge over WULF and CRWV, provided it can execute these plans on schedule and convert its scarce power access into revenue-generating AI capacity.
How Are APLD's Competitors Positioned?TeraWulf competes with APLD by controlling power-advantaged sites, interconnection and electrical infrastructure to convert scarce electricity into AI/HPC capacity. TeraWulf’s Lake Mariner and Kentucky projects pair grid access with phased, long-term leases, while its 250-500 MW annual contracting target challenges APLD’s expansion pipeline. TeraWulf therefore competes directly for power, customers and AI capacity.
CoreWeave competes with APLD by aggressively securing power and converting it into AI cloud capacity at scale. CoreWeave reached 1.5 GW of active power and 4.2 GW contracted, with a goal of at least 8 GW by 2030. Its powered-land and self-build strategy directly contests APLD for scarce power, sites and AI workloads.
APLD’s Share Price Performance, Valuation & EstimatesAPLD shares have surged 70.6% in the past year, outperforming the broader Zacks Computer and Technology sector’s 12.1% growth.
APLD’s 1-Year Price Performance
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From a valuation standpoint, APLD appears overvalued, trading at a trailing 12-month price/book (P/B) ratio of 4.51, above the industry average of 3. The company carries a Value Score of F.
APLD’s Valuation
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The fiscal 2027 bottom-line outlook remains challenging, with the consensus estimate currently pegged at a loss of $1.09 per share, widening by 9 cents over the past 30 days and compared with a loss of 91 cents in fiscal 2026.
Applied Digital (APLD +20.46%) is the tale of two tapes. The stock is up about 150% over the past year, but its shares have also been nearly cut in half from their spring highs. With the company's revenue surging, the question on many investors' minds now is whether it's time to buy the stock when it's down.
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Revenue growth surges Applied Digital is more of an AI data center landlord than it is a tech company. It spun out its cloud computing business and merged it with EKSO Bionics Holding earlier this year to create a new company called ChronoScale (CHRN +13.71%), although it still holds a 96% stake in the new entity. Meanwhile, it is considering converting into a real estate investment trust (REIT).
Applied Digital's main business today is building and operating data centers designed to handle AI workloads. However, it does still have a data center hosting business that serves cryptocurrency miners, which was its original business. Its biggest attribute is its access and ability to source cheap power and know-how for constructing facilities that can house massive data centers.
Applied Digital has been seeing rapid revenue growth, which continued in fiscal Q4 with its revenue soaring 407% to $258.7 million. Excluding the spun-off ChronoScale, revenue rose from $38 million to $240.4 million.
The company's high-performance computing (HPC) business accounted for $203 million of its revenue, with $44.1 million tied to base rent and $6.5 million related to tenant recoveries. The bulk of it, $152.1 million, came from tenant fit-out services, which is revenue it gets from constructing dedicated facilities for large customers.
This revenue is coming mostly from its largest customer, CoreWeave. Tenant fit-out services have low gross margins, but they do lead to future, higher-margin recurring revenue.
Its data center hosting business, meanwhile, saw its revenue slip by 2% to $37.63 million, with operating income of $12.5 million. This is Applied Digital's legacy business, comprising two facilities in North Dakota with 286 megawatts of power dedicated to cryptocurrency mining.
On the profitability front, the company reported adjusted net income of $12.9 million, or $0.04 per share. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $42.4 million, compared to $1 million a year ago.
Applied Digital ended the quarter with $1.6 billion in unrestricted cash against $5 billion in debt. It reported operating cash flow of $89.7 million and negative free cash flow of $2.8 billion.
During the quarter, Applied Digital signed leases for three new campuses worth $20 billion in lease value with a single high-investment-grade hyperscaler. In total, it has now signed leases for five campuses, bringing its contracted long-term lease value to $36 billion.
Image source: Getty Images.
Applied Digital continues to grow revenue quickly, although much of this is coming from low-margin non-recurring tenant fit-out service revenue. However, this does help set the stage for future recurring revenue. At the same time, the company is burning through cash, expanding its data center campuses, and taking on significant debt.
That said, its business should be inherently less risky than that of neocloud operators. It isn't buying pricey graphics processing units (GPUs), so it faces less technology obsolescence risk, and it is getting long-term leases. Having CoreWeave as its primary customer is a risk, but a large hyperscaler becoming its primary tenant in the future will be a plus.
With Applied Digital projecting it will hit a $1 billion net operating income (NOI) run rate a year from now and a strong, growing backlog, the stock looks intriguing here. I'd still place it in the high-risk, high-reward category, but with power still one of the big AI infrastructure bottlenecks, the company looks to be in a solid long-term position.
Applied Digital oznámila 1,41 GW smluvně zajištěné IT kapacity na pěti kampusech, která má podpořit asi 36 miliard USD ve výnosech z nájmů. Firma zároveň uvedla, že růst brzdí hlavně dostupnost elektřiny a dodavatelský řetězec.
Key Takeaways APLD has 1.41 GW of contracted IT load across five campuses, backing about $36 billion in lease revenues.Applied Digital funded 600 MW at Polaris Forge through project debt, Macquarie equity and its balance sheet.Power and supply constraints, not demand, are the main limits as Polaris Forge 1 reaches 175 MW live. Applied Digital Corporation (APLD - Free Report) used its fiscal fourth-quarter 2026 earnings call to emphasize contracted scale, financing progress and execution across its expanding AI data center portfolio.
Management’s message centered on converting a large development pipeline into operating capacity while securing power, controlling construction costs and lowering the capital required to fund growth.
APLD Builds Around Contracted ScaleChairman and CEO Wes Cummins said Applied Digital now has 1.41 gigawatts of contracted critical IT load across five campuses, supporting approximately $36 billion of base-term lease revenues.
Three recent leases with the same high investment-grade hyperscaler cover 810 megawatts and approximately $20 billion of contracted revenues. Cummins described the concentration as part of a deliberate shift toward durable agreements with financially stronger customers.
Management is also marketing another 1.7 gigawatts across multiple states. Expansion options under negotiation with two existing customers could add 250 megawatts and more than $6 billion of contracted revenue based on current rates and lease durations.
Applied Digital Targets Higher Lease PricingCummins said rental rates have increased during the past six months, creating room for better economics on new campuses and customer expansions.
A Lake Street Capital Markets analyst asked about the proposed 100-megawatt and 150-megawatt expansions. Cummins said both would involve existing customers and should carry materially higher pricing than their current agreements.
During a Northland Securities exchange about development yields, Cummins defended the recent leases as competitive for their scale, duration and customer quality. He added that management uses conservative cost and margin assumptions when evaluating project returns.
APLD Lowers Its Cost of CapitalCFO Saidal Mohmand highlighted financing as a central part of the company’s development model. Applied Digital secured funding for all 400 megawatts at Polaris Forge 1 and 200 megawatts at Polaris Forge 2.
The company issued $2.15 billion of 6.75% senior secured notes and $1.59 billion of 7% senior secured notes. Mohmand said the latter financing priced 225 basis points below the company’s first project bond placement.
Mohmand described a three-part funding structure combining Applied Digital’s balance sheet, Macquarie’s contribution of three-quarters of required project equity and site-specific debt. Management expects investment-grade tenant agreements to support more favorable financing for its next three campuses.
Applied Digital Flags Power and Supply ConstraintsCummins identified power availability and supply-chain capacity as the main limits on growth rather than customer demand.
The company is working with Base Electron on approximately 1.2 gigawatts of natural gas-fired generation in the Dakotas. Management views added generation and regional transmission projects as essential to expanding existing campuses beyond their initial capacity.
Cummins also said the company had previously secured supply-chain capacity for roughly 700 megawatts of annual critical IT load. Applied Digital is now building beyond that level, placing greater importance on equipment availability, construction sequencing and labor planning.
APLD’s Results Reflect an Early RampFiscal fourth-quarter adjusted revenues were $240.4 million, which beat the Zacks Consensus Estimate of $99.3 million. It incurred a loss of 39 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 18 cents.
HPC hosting generated $203 million of revenues, including $152.4 million from tenant fit-out services and $44.1 million from base rent. Adjusted EBITDA reached $42.4 million, and net operating income was $39.9 million.
Mohmand stressed that quarterly HPC results primarily reflected the first 100 megawatts operating at Polaris Forge 1. The company subsequently brought another 75 megawatts online, taking live capacity at the campus to 175 megawatts.
Applied Digital Keeps Execution CentralManagement maintained a confident tone on demand but repeatedly returned to construction discipline. Cummins said all current projects were on time and on budget, while noting that power and supply-chain management remain critical.
Applied Digital now expects to reach a $1 billion annual net operating income run rate within one year, three years earlier than its original target. The company’s priorities remain delivering contracted capacity, financing projects efficiently and expanding existing campuses.
Zacks Signals Remain CautiousAPLD currently carries a Zacks Rank #3 (Hold). That ranking indicates a neutral near-term earnings revision outlook rather than a clear signal of outperformance or underperformance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock has a Value, Growth, Momentum and VGM Score of F each, indicating weak characteristics across all four measures. Style Scores work best alongside the Zacks Rank, with A or B grades viewed more favorably. The Zacks Rank can change as analyst estimates are revised following the newly reported results.
Applied Digital ve 4. čtvrtletí zvýšila tržby na 258,7 milionu USD, meziročně o 407 %, a upravený EBITDA vyskočil na 42,4 milionu USD. Firma zároveň oznámila objem zakázek v backlogu ve výši 36 miliard USD.
Live Coverage Updates appear automatically as they are published.
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This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Applied Digital’s earnings.
Simply stay on this page, and new updates will appear below automatically. We expect APLD to release earnings shortly after 4:05 p.m. ET.
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That wraps up our initial coverage of APLD’s Q4 results. Thank you for stopping by!
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Tonight’s report from Applied Digital (NASDAQ:APLD) delivered several items Wall Street was not expecting:
Upside Surprises Backlog jump: Contracted revenue vaulted to $36 billion across 1.4 gigawatts, well above the $16 billion figure carried into the report. New hyperscaler: A high-investment-grade tenant signed 810 megawatts across three leases, addressing CoreWeave concentration head-on. Revenue explosion: Adjusted revenue of $240.4 million versus consensus $95.32 million, with adjusted EBITDA at $42.4 million from $1.0 million a year ago. Concerns and One-Time Items Stock-based comp: $127.8 million drove the GAAP loss of $0.39, missing the $0.28 expected loss and extending the accelerated-vesting pattern. Fit-out lumpiness: HPC Hosting included $152.4 million in tenant fit-out, a low-margin, non-recurring line inflating the headline. 1 hour ago
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Applied Digital delivered another 75 megawatts of capacity at Polaris Forge 1 on schedule, lifting the AI campus to 175 megawatts of live capacity.
The company’s first 100-megawatt building began operating in October 2025, providing evidence that its massive contracted pipeline is progressing from signed leases into revenue-generating infrastructure.
The company has raised billions to support the next phase. Applied Digital completed a $2.15 billion secured-notes offering to fund Polaris Forge 2, followed by another $1.59 billion offering to finance the fourth building at Polaris Forge 1. It also expanded its committed revolving credit facility to $430 million.
Applied Digital now has approximately 1.4 gigawatts under construction across five campuses. The next major test is whether it can repeat the on-time Polaris Forge delivery across a far larger development pipeline without financing costs or construction delays eroding the economics.
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Applied Digital has now secured approximately 1.4 gigawatts of critical IT load across five AI data center campuses. Those leases represent roughly $36 billion in contracted revenue over their initial 15-year terms, rising to approximately $86 billion if customers exercise every renewal option.
The newest growth engine is a high-investment-grade hyperscaler that signed three separate leases totaling 810 megawatts. Two 300-megawatt campuses carry approximately $7.5 billion in contracted revenue apiece, while a third 210-megawatt site adds another $5.2 billion.
Applied Digital is also marketing another 1.7 gigawatts of capacity across multiple states. The backlog has officially reached hyperscale, shifting the investment debate from customer demand to whether Applied Digital can deliver all five campuses on schedule.
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Applied Digital delivered fiscal Q4 revenue of $258.7 million, up 407% year over year, as its AI infrastructure buildout began translating into reported results. This resulted in a 152% revenue beat vs consensus estimates.
Adjusted revenue excluding ChronoScale reached $240.4 million, while adjusted EBITDA surged to $42.4 million from just $1.0 million one year ago.
The HPC Hosting segment generated $203.0 million in quarterly revenue and $26.2 million in operating profit. That included $44.1 million in base rent, $152.4 million from tenant fit-out services, and $6.5 million in tenant reimbursements.
Applied Digital still reported a GAAP loss of $0.39 per share, partly reflecting $127.8 million in stock-based compensation. However, adjusted net income reached $12.9 million, or $0.04 per diluted share, compared with an adjusted loss of $0.03 per share last year.
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Applied Digital just reported Q4 earnings, with shares initially up 4% following the report. Here are the key numbers:
Revenue: $240.35 million vs. $95.32 million expected EPS: Loss of $0.39 vs. loss of $0.28 expected Quick Read:
Revenue crushed expectations by 152%, climbing 532% year over year and 90% sequentially.
The massive top-line beat outweighed the wider-than-expected loss, although EPS declined 63% year over year and 8% sequentially.
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Top 5 Analyst Questions: Can HPC Hosting sustain $71 million ex-fit-out run rate into Q1 FY27? Is Delta Forge 1’s lease signed to hit mid-2027 RFS? Status of ChronoScale/EKSO closing this quarter? Progress on the three-site, 900 MW hyperscaler exclusivity? Timeline to refinance from project loans into ABS? Key Topics, Buzzwords, Red Flags Key Topics: CoreWeave’s A3 SPV rating, Base Electron’s 1.2 GW power buildout, and reaffirmation of the $1B NOI five-year goal. Buzzwords: “direct-to-chip liquid cooling,” “Ready-for-Service,” “NOI run rate,” “tenant fit-out,” “multi-gigawatt pipeline.” Red Flags: Widening GAAP losses beyond $100.9M, another SG&A spike from accelerated stock comp, softer HPC base rent, or hedging language on lease signings this year. Insider selling from CEO, CFO, and President at $35.52–$45.20 raises the bar for a confidence-restoring guide. 2 hours ago
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Wall Street expects Applied Digital (NASDAQ:APLD) to post Q4 EPS of -$0.19 on revenue of $95.3 million, a sequential step down from Q3’s $126.64 million. Shares last traded at $26.63, down 2.02% on the day, extending a brutal 43.28% slide since June 1.
Metrics That Matter HPC Hosting revenue after last quarter’s $71.0 million Timing on the second 150 MW Polaris Forge 1 building Initial 200 MW Polaris Forge 2 capacity CoreWeave concentration Reaffirmation of the $1 billion NOI target within five years What Could Move Shares Options positioning skews bullish, with a 3.28:1 call/put ratio across earnings-week contracts. An HPC Hosting shortfall or slipped Polaris timelines could accelerate selling, while a beat plus a new hyperscaler contract could spark a snap-back toward the $73.05 average analyst target.
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Options positioning heading into tonight’s report skews decisively bullish. The full-chain put/call ratio sits at 0.42, and the July 31 weekly shows call volume of 17,309 versus 5,896 puts, a 2.94:1 skew.
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Institutional bets extend further out. January 2027 calls hold 173,554 contracts in open interest against a put/call ratio of just 0.14, and January 2028 shows a 6.54:1 call OI skew. Insiders have echoed the tone with 10 recent transactions and net buying.
The roughly 13.72% implied move quantifies the expected swing by Friday’s close. Q3 2026 delivered a 142.86% EPS beat, yet Applied Digital (NASDAQ:APLD) closed -7.99% on earnings day before rallying 17.68% over the following week. Tonight pairs bullish flow with a battered chart.
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Tonight’s fiscal Q4 2026 report from Applied Digital (NASDAQ:APLD) arrives with shares at $26.12, down 2.23% intraday. Options are pricing a 13.72% post-earnings swing.
The Bar to Clear: Q3’s $126.64 million revenue and adjusted EPS of $0.09 reset expectations sharply. Investors want HPC Hosting to hold Q3’s $71 million run rate and Data Center Hosting to build on $37.5 million.
Move Triggers: Guidance on the second 150 MW Polaris Forge 1 facility, any new hyperscaler leases beyond the $16 billion backlog, ChronoScale/EKSO closing timeline, and commentary on the $2.7 billion debt load could drive the stock after earnings.
History Warns Both Ways: Q3’s 142.86% beat still sent shares -7.99% on release day before a 17.68% one-week rally. With Morgan Stanley’s $36.50 Equal Weight target framing skepticism, execution details matter more than the headline beat.
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With shares at $26.37 and consensus looking for -$0.19 EPS on $95.3M revenue, here is where the Bull vs Bear case stands.
Bull Case Beat streak: Five straight beats, with Q3 FY26 topping estimates by 142.86%. Backlog: 600 MW leased tied to roughly $16 billion in prospective lease revenue. Post-earnings pattern: Average one-week gain of 11.13% even after weak day-of reactions. Bear Case GAAP losses widening: Q3 FY26 net loss of $100.9M. Leverage: $2.7B debt against $2.1B cash, plus ongoing capital raises. Concentration risk: Heavy reliance on CoreWeave and hyperscaler ramp timing. Skepticism: Shares down 35.23% over the past month. Watch the guide and CoreWeave commentary closely.
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Applied Digital reports fiscal Q4 2026 results with shares down 35.23% over the past month. Options markets are pricing in a sizable 13.72% post-earnings move, while a 0.43 put/call ratio signals traders remain tilted toward upside bets.
The central question is whether Applied Digital can convert its $16 billion contracted backlog and 1-gigawatt pipeline into a repeatable earnings engine before its capital requirements become a bigger concern. Investors will be watching for the ChronoScale/EKSO spin-off closing, progress on the HPC ramp, and any update on the company’s exposure to CoreWeave.
Wall Street remains firmly bullish, with 11 buy ratings and an average price target of $73.05 vs the stock’s current price of $26.13. That optimism leaves Applied Digital little room for delays, dilution, or margin pressure as enthusiasm surrounding the broader AI infrastructure trade cools.
Applied Digital (NASDAQ:APLD) is expected to report fiscal Q4 2026 results tonight at 4:05 PM ET after the bell. This earnings report closes a year where the stock rose 142.77% but recently reversed sharply.
From Contract Wins to a Sharp Reset Shares last traded at $26.09, down from $41.98 a month ago after dilution and financing news reset sentiment. Q3 FY26 delivered adjusted EPS of $0.09 against a -$0.21 consensus and revenue of $126.64 million, resulting in a 61.37% beat.
Adjusted EBITDA scaled to $44.14 million from $6.26 million a year earlier, though the GAAP net loss widened to $100.9 million on stock-based comp and reclassification charges. Management reiterated confidence in exceeding $1 billion in NOI within five years.
Consensus Estimates Metric Q4 FY26 Estimate Prior Q4 FY25 Actual Revenue $95.32M $38.01M EPS (Normalized) -$0.19 -$0.12 The Street models a step-down in sequential revenue from Q3’s $126.64M as one-time tenant fit-out revenue rolls off. EPS reverts to a loss, reflecting scaling SG&A (up 251% YoY) and interest on the $2.15 billion 6.750% Senior Secured Notes.
What I’ll Be Watching: Capacity, Concentration, and the Spin Tonight, I’ll be watching whether the second 150 MW building at Polaris Forge 1 is on track for its calendar 2026 timeline, since CEO Wes Cummins framed the current 100 MW as only “one-sixth of our contracted capacity and one-tenth of what is operating or under construction.”
Investors will also focus on progress toward the ChronoScale Corporation spin-off via the EKSO Bionics combination, slated to close this quarter. Any timing slip changes the segment reporting picture and the remaining GAAP drag from Cloud Services.
Customer concentration remains one of the biggest overhangs. HPC Hosting rests heavily on CoreWeave, and Nvidia reportedly exited its equity stake on July 17, 2026. Analysts will be looking for commentary on the Polaris Forge 3 430 MW project with MDU Resources and the 200 MW investment-grade hyperscaler at Polaris Forge 2.
Right now, the company’s balance sheet sits at $2.7 billion in debt against $2.1 billion in cash, with capex escalating across four sites.
Earnings History Quarter EPS Surprise Day-of Move 1-Week Move 30-Day Move Q3 FY26 +142.86% -7.99% +17.68% +74.38% Q2 FY26 +46.78% +8.05% +10.27% +17.31% Q1 FY26 +29.03% +16.05% +0.74% -15.95% Q4 FY25 +26.15% +31.01% +8.37% +16.13% On average, shares moved 11.13% one week after earnings over the past year.
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Applied Digital má silný backlog, ale zároveň dluh kolem 2,7 miliardy USD a dál financuje výstavbu. Ve čtvrtletí vykázala upravenou EBITDA 44,1 milionu USD.
That kind of contracted visibility is rare for a company still years away from full buildout, and it explains why Wall Street has stayed largely bullish even as the stock has struggled.
APLD stock is down heading into earnings. See the chart and price action here. The other side of the ledger looks far less comfortable. Total debt stood near $2.7 billion as of the fiscal third quarter, and Applied Digital kept raising capital to fund construction across its North Dakota and other campus sites.
Adjusted EBITDA reached $44.1 million last quarter, a big jump from a year earlier but still nowhere near covering the pace of capital spending required to bring gigawatts of new capacity online.
For the fourth quarter, analysts expect the company to report losses of 22 cents per share on GAAP revenue of $94.84 million, according to estimates from Benzinga Pro.
Tonight’s call will likely focus less on the top-line beat-or-miss and more on financing: what debt tranches remain unplaced, how construction costs are trending and whether management sees a path to funding the pipeline without diluting shareholders further.
Shares still fell nearly 6% the day after that comment aired, a sign that the profitability concern is outweighing buy-the-dip enthusiasm for now.
That tension sets up Monday’s report as a real test. Analysts widely favor the stock, with an average price target near $73 against shares trading in the mid-$20s, yet the balance sheet risk Cramer flagged has not gone away.
A clear funding update alongside strong contract momentum could reset the narrative; another vague answer on cash needs probably keeps the stock stuck between backlog optimism and balance sheet anxiety.
APLD Stock Price Activity: Applied Digital shares were down 3.11% at $26.35 at the time of publication Monday, according to data from Benzinga Pro.
Over the past month, Applied Digital has declined about 34.1% versus a 0.2% rise in the S&P 500 and is up roughly 4% year-to-date compared to the index’s 7.6% gain.
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Lumentum ve třetím fiskálním čtvrtletí zvýšil tržby v divizi Components o 77,3 % a v divizi Systems o 121,1 % díky silné poptávce po AI infrastruktuře. Applied Digital naopak prohloubil čistou ztrátu na 100,9 milionu USD.
Key Takeaways Lumentum's fiscal third-quarter Components and Systems revenues surged 77.3% and 121.1%, respectively.AI demand, sold-out components and new optical products support LITE's multi-year growth outlook.APLD faces widening losses, heavy debt and execution risks despite expanding AI data center capacity. Lumentum Holdings (LITE - Free Report) and Applied Digital Corporation (APLD - Free Report) are emerging beneficiaries of the accelerating AI infrastructure buildout. Lumentum supplies advanced optical networking components that enable high-speed data transmission within AI data centers. At the same time, Applied Digital develops and operates AI-focused data centers and high-performance computing infrastructure. Despite their different business models, both companies are benefiting from the same wave of AI-driven capital spending.
The AI infrastructure investment cycle is gaining momentum as hyperscalers, cloud providers and enterprises continue expanding their AI capabilities. According to Mordor Intelligence, the global AI infrastructure market is projected to reach $202.5 billion by 2031, growing at a 14.9% CAGR. As AI infrastructure spending accelerates, investors are increasingly evaluating companies across different layers of the AI ecosystem. Against this backdrop, comparing these two companies offers insight into which is better positioned to capitalize on this long-term opportunity.
The Case for LITE StockLumentum is emerging as one of the strongest beneficiaries of the accelerating AI infrastructure buildout, supplying the optical engines that enable high-speed connectivity inside and between hyperscale AI data centers. Its portfolio spans electro-absorption modulated lasers (EMLs), continuous-wave lasers, pump lasers, narrow-linewidth laser assemblies, optical circuit switches (OCS) and cloud transceivers — all of which are essential for AI networking, data center interconnect (DCI) and co-packaged optics (CPO). The company increasingly positions itself as a critical supplier of both AI infrastructure components and complete optical systems.
AI demand continues to translate into exceptional execution. In third-quarter fiscal 2026, Components revenues climbed 77.3%, and Systems revenues jumped 121.1%, driven by record cloud transceiver shipments, robust EML demand and expanding AI deployments. Management expects fiscal fourth-quarter revenues of $960 million-$1.01 billion, reflecting confidence in sustained AI infrastructure investments and continued business momentum.
Lumentum's competitive advantage lies in its differentiated "scale-out" and "scale-across" optical portfolio. Hyperscalers are increasingly adopting distributed AI architectures that require high-bandwidth optical interconnects, pump lasers, wavelength-selective switches and narrow-linewidth lasers. The company stated several AI-focused components remain effectively sold out, while 1.6T transceivers, optical circuit switches and CPO products are expected to provide additional multi-year growth opportunities.
However, investors should remain aware of supply constraints, uncertain AI investment timing, manufacturing ramp execution, geopolitical trade restrictions and customer concentration, which could affect near-term performance. Even so, these risks appear manageable given the company's expanding capacity, improving profitability and strengthening product portfolio.
Analyst sentiment toward Lumentum has strengthened, with the Zacks Consensus Estimate for its fiscal first-quarter and full-year fiscal 2027 earnings pegged at $3.53 and $18.07 per share, indicating growth of 220.91% and 121.15%, respectively. These estimates have also moved higher over the past 30 and 60 days.
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The Case for APLD StockApplied Digital is positioning itself as an emerging beneficiary of the accelerating AI infrastructure buildout, but the investment case remains clouded by execution and financial risks. The company is pursuing an aggressive, capital-intensive expansion strategy that continues to pressure profitability while increasing financial leverage. Third-quarter fiscal 2026 net loss attributable to common stockholders widened to $100.9 million, while operating loss reached $85.7 million despite strong revenue growth. The balance sheet reflects the scale of its AI infrastructure buildout, with long-term debt exceeding $2.5 billion, making future returns heavily dependent on timely project execution, customer ramp-ups and continued access to financing.
Despite strong AI demand, Applied Digital faces significant execution challenges. Future growth depends on completing Polaris Forge and Delta Forge projects on schedule, securing additional financing, converting its power pipeline into contracted capacity and signing more long-term hyperscaler leases. The company also remains exposed to customer concentration, power availability, permitting delays, equipment disruptions and the timing of hyperscaler leasing decisions — all of which management identifies as key business risks. Moreover, management noted that only a small fraction of its long-term power pipeline has been contracted, while several development sites remain subject to customer negotiations, regulatory approvals and infrastructure development.
Still, Applied Digital is positioned to benefit from the accelerating AI infrastructure investment cycle. The company designs, builds and operates purpose-built AI factories for AI, cloud and high-performance computing workloads while leveraging a vertically integrated strategy spanning power, AI infrastructure and accelerated compute.
APLD recently laid the foundation stone for the 300 MW Delta Forge 1 AI campus, secured a $100 million development facility from Macquarie, strengthened the credit quality of CoreWeave leases, completed a $2.15 billion secured note offering and continued the expansion of Polaris Forge. Management also targets approximately 3 GW of AI capacity by 2031, positioning the company as a potential long-term beneficiary of hyperscalers' accelerating AI infrastructure spending.
The Zacks Consensus Estimate for APLD’s fiscal 2027 loss is currently pegged at $1 per share, wider than the 70-cent loss reported a year ago. While the estimate has remained unchanged over the past 30 days, it has worsened by 9 cents over the past 60 days.
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Price Performance & Valuation of LITE & APLDIn the past six months, shares of Lumentum have surged 130.9% against Applied Digital’s decline of 22.3%. Growing adoption of Lumentum's AI optical technologies has enhanced revenue visibility and investor sentiment, enabling the stock to outperform despite volatility across the broader AI infrastructure sector.
LITE Vs. TEAM: Six-Month Price Return Performance
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Valuation remains a consideration, with Lumentum and Applied Digital each carrying a Value Score of D and F, respectively. However, Lumentum trades at a lower forward 12-month P/S multiple of 10.21X versus Applied Digital's 11.79X.
LITE's relatively reasonable valuation, combined with its strong AI-driven growth prospects, makes the stock an attractive choice for investors seeking long-term upside with greater stability.
LITE vs. APLD: Forward 12-Month P/S Ratio
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LITE or APLD: Which Stock Has the Edge?Lumentum appears better positioned than Applied Digital at present, supported by stronger execution, accelerating earnings growth, improving estimate revisions and a relatively more attractive valuation. While both companies stand to benefit from expanding AI infrastructure investments, Lumentum offers a more balanced risk-reward profile, making it the stronger choice for investors seeking long-term AI-driven growth with greater stability.
Currently, LITE has a Zacks Rank #2 (Buy), while APLD carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Digital má asi 36 miliard USD ve smluvně zajištěných nájmech, ale téměř 86 % z nich plyne jen od dvou hyperscalerů. Tato koncentrace zvyšuje riziko plnění a závislost na investicích několika velkých zákazníků.
Key Takeaways APLD derives nearly 86% of contracted lease revenues from just two hyperscale customers. Applied Digital has about $36B in contracted leases, with most tied to existing hyperscale relationships. APLD faces diversified rivals EQIX and DLR, while customer concentration heightens execution risk. Applied Digital (APLD - Free Report) continues to expand its artificial intelligence data center platform aggressively, but its persistently high customer concentration remains an important investment risk. Although the company has built a sizable portfolio of long-term hyperscale leases, future revenue generation remains heavily dependent on a limited number of counterparties, tying growth closely to the investment priorities and financial health of a few large customers.
The exposure remains substantial. Applied Digital has approximately $36 billion in contracted lease revenues, with nearly $20 billion associated with one hyperscaler across Delta Forge 1, Polaris Forge 3 and Delta Forge 2. CoreWeave represents another $11 billion through Polaris Forge 1, while a third hyperscaler at Polaris Forge 2 accounts for the remaining $5 billion. Consequently, nearly 86% of the company's contracted revenues are derived from just two customers, highlighting the limited diversification of its revenue pipeline.
This dependence increases execution risk as multiple AI data center campuses are scheduled to become operational through 2027 and 2028. Any delay in capacity deployments, moderation in AI infrastructure investments or deterioration in the credit profile of these key tenants could materially affect future revenue generation. While Applied Digital continues to expand its development pipeline, much of the incremental contracted capacity remains tied to existing hyperscale relationships instead of materially broadening its customer mix.
With the bulk of contracted revenues still resting on just two hyperscalers and little evidence of a broader tenant base taking shape, APLD's customer concentration is likely to remain a defining constraint on the sustainability of its growth trajectory.
APLD Faces Stiff CompetitionApplied Digital faces intense competition from Equinix (EQIX - Free Report) and Digital Realty Trust (DLR - Free Report) , both of which operate with significantly more diversified customer portfolios.
Equinix generates revenues from a broad base of enterprise, cloud and network customers across global markets, while Digital Realty Trust serves a balanced mix of hyperscalers, enterprises and colocation customers. In comparison, Applied Digital remains heavily reliant on a limited number of hyperscale tenants for the bulk of its contracted lease revenues.
Unlike Equinix and Digital Realty Trust, Applied Digital's elevated customer concentration increases its exposure to customer-specific investment decisions and execution risks, potentially making its long-term revenue stream more volatile.
APLD’s Share Price Performance, Valuation & EstimatesApplied Digital shares have returned 31.7% year to date, while the broader Zacks Finance sector has appreciated 4.6% and the Zacks Financial-Miscellaneous Services industry has plunged 12.5%.
APLD Stock’s Performance
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Applied Digital stock is trading at a forward 12-month price/sales of 13.14X compared with the broader sector’s 8.97X. APLD has a Value Score of F.
APLD’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 loss is pegged at 70 cents per share. Applied Digital reported a loss of 80 cents per share in the previous year.
Applied Digital dál masivně investuje do datových center AI a financuje expanzi hlavně dluhem. Na Polaris Forge 1 přidala 75 MW, ale z 400 MW pronajaté kapacity je zatím více než polovina stále bez opakovaných příjmů z nájmu.
Key Takeaways Applied Digital is expanding five AI campuses, with new capacity added at Polaris Forge 1.APLD raised billions in secured financing as capital spending continues to exceed operating cash flow.Applied Digital has over half of its 400-megawatt leased capacity still awaiting recurring lease revenues. Applied Digital (APLD - Free Report) continues an aggressive capital spending program as it expands its AI data center footprint across multiple campuses. APLD is simultaneously developing five AI Factory campuses, including Polaris Forge 1, Polaris Forge 2, Delta Forge 1 and Delta Forge 2. Construction of a fourth building at Polaris Forge 1 has already begun before the third building reaches full utilization. On July 1, 2026, Applied Digital placed Phase 1 of the second building at Polaris Forge 1 into service, adding 75 megawatts of operational capacity and taking the campus to 175 megawatts of live capacity. However, this remains well below the 400 megawatts already leased to CoreWeave under long-term agreements, leaving more than half of the contracted capacity yet to contribute recurring lease revenue.
To support this infrastructure expansion, Applied Digital continues to rely on project-level financing rather than internally generated cash flows. The company raised $1.59 billion through senior secured notes due 2031 to fund the fourth building at Polaris Forge 1, following an earlier $300 million bridge facility for the same project and a $2.15 billion senior secured notes offering for Polaris Forge 2. An additional debt tranche remains to be placed for Polaris Forge 1, suggesting financing requirements are likely to remain elevated as construction progresses across its development pipeline.
APLD's adjusted EBITDA was $44.1 million in the fiscal third quarter, while total debt stood at approximately $2.7 billion at the quarter’s end. The pace of capital deployment continues to outstrip current operating cash generation, leaving the company's expansion strategy heavily reliant on external financing. With several AI campuses still under construction and financing needs expected to remain elevated, Applied Digital is likely to remain in an investment-heavy phase until a larger portion of its contracted capacity begins generating recurring lease revenue and cash flows.
APLD Faces Stiff CompetitionApplied Digital competes with IREN Limited (IREN - Free Report) and TeraWulf (WULF - Free Report) in expanding AI infrastructure to serve hyperscale customers. Like Applied Digital, IREN continues investing in high-performance computing capacity, while TeraWulf is expanding its digital infrastructure through AI-focused data center projects. However, compared with IREN and TeraWulf, Applied Digital is pursuing a broader multi-campus expansion strategy, resulting in larger upfront capital commitments and greater reliance on external financing as new capacity is brought online.
APLD’s Share Price Performance, Valuation & EstimatesApplied Digital shares have surged 34.8% year to date, outperforming the broader Zacks Finance sector’s decline of 9% and the Zacks Financial-Miscellaneous Services industry’s increase of 4.5%.
APLD Stock’s Performance
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Applied Digital stock is trading at a forward 12-month price/sales of 12.06X compared with the broader sector’s 2.81X.
APLD’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 loss is pegged at 70 cents per share, unchanged over the past 30 days. Applied Digital reported a loss of 80 cents per share in the previous year.
Applied Digital oznámila dokončení fáze 1 budovy 2 v Polaris Forge 1 a předání 75 MW AI kapacity zákazníkovi podle plánu. Celková live kapacita kampusu tak vzrostla na 175 MW.
DALLAS, July 01, 2026 (GLOBE NEWSWIRE) -- Applied Digital (NASDAQ: APLD), a designer, builder, and operator of high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads, today announced it has achieved Ready for Service for Phase 1 of Building 2 at Polaris Forge 1, delivering 75 MW of operational AI capacity to its customer on schedule and bringing total live capacity at the campus to 175 MW.
The delivery marks the next major milestone in the continued buildout of Polaris Forge 1, Applied Digital’s fully leased AI Factory Campus designed to support high-density artificial intelligence and high-performance computing workloads. At full build out, Polaris Forge 1 is contracted to deliver 400 MW of critical IT load under long-term lease agreements.
“Delivering this phase on time underscores the strength of our execution model,” said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital. “Polaris Forge 1 continues to demonstrate the depth of our team and the discipline it takes to bring critical AI infrastructure capacity online for our customers. Achieving this milestone required intense coordination across the field, construction, engineering, operations, procurement, development, and corporate teams, and I’m proud of the entire Applied Digital organization for delivering as planned. With 175 MW now live at the campus, Polaris Forge 1 demonstrates the repeatable model we are scaling across our AI Factory footprint.”
This latest achievement follows Applied Digital’s on-time completion of the first 100 MW building at Polaris Forge 1 and further demonstrates the Company’s ability to bring critical IT capacity online in alignment with customer deployment timelines. With 175 MW now live, Polaris Forge 1 continues to demonstrate Applied Digital’s ability to execute across multiple phases of a large-scale AI infrastructure deployment.
Applied Digital’s execution approach is built around what the Company refers to as its AI Factory franchise model: a repeatable framework that replicates a core team of design, construction, and operations professionals across each campus, supported by centralized expertise and dedicated site-level execution teams.
“Polaris Forge 1 continues to validate the repeatable model we are building across our AI Factory platform,” Cummins continued. “We are not just securing power; we are turning it into live, operational AI capacity. That is the hard part, and it is where Applied Digital continues to differentiate itself.”
As demand for large-scale AI infrastructure continues to grow, customers are placing increasing importance on execution certainty and speed to market. Applied Digital’s on-time delivery of another major phase at Polaris Forge 1 reinforces the Company’s ability to bring complex infrastructure online in alignment with customer timelines.
Polaris Forge 1 is located in Ellendale, North Dakota, where Applied Digital has operated since 2021 and built long-standing relationships with local leaders, partners, and community stakeholders. As the campus continues to expand, the Company remains focused on responsible development, local partnership, and creating long-term value in the communities where it builds.
About Applied Digital
Applied Digital (Nasdaq: APLD), named Best Data Center in the Americas 2025 by Datacloud — designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the company combines hyperscale expertise, closed-loop cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its AI Factory franchise model.
Learn more at applieddigital.com or follow @APLDdigital on X and LinkedIn.
Forward-Looking Statements
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, future operating and financial performance, product development, market position, business strategy and objectives, and future financing plans. These statements use words, and variations of words, such as “will,” “continue,” “build,” “future,” “increase,” “drive,” “believe,” “look,” “ahead,” “confident,” “proven,” “deliver,” “outlook,” “expect,” “project” and “predict.” Other examples of forward-looking statements may include, but are not limited to, (i) statements that reflect perspectives and expectations regarding lease agreements and any current or prospective data center campus development; (ii) statements about the high-performance computing (HPC) industry; (iii) statements of company plans and objectives, including the company’s evolving business model, or estimates or predictions of actions by suppliers; (iv) statements of future economic performance; (v) statements of assumptions underlying other statements and statements about the company or its business; and (vi) the company’s plans to obtain future project financing. You are cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the company’s expectations and projections. These risks, uncertainties, and other factors include, among others: whether or not our customers exercise the renewal options under their leases with us (if not, we will not recognize further revenue from such customer under its respective lease); our ability to complete construction of our data center campuses as planned; the lead time of customer acquisition and leasing decisions and related internal approval processes; changes to artificial intelligence and HPC infrastructure needs and their impact on future plans; costs related to the HPC operations and strategy; our ability to timely deliver any services required in connection with completion of installation under lease agreements; our ability to raise additional capital to fund the ongoing datacenter construction and operations; our ability to obtain financing of datacenter leases and more broadly for our development and general corporate activities; our dependence on principal customers, including our ability to execute and perform our obligations under our leases with key customers; our ability to timely and successfully build new hosting facilities with the appropriate contractual margins and efficiencies; power or other supply disruptions and equipment failures; the inability to comply with regulations, developments and changes in regulations; cash flow and access to capital; availability of financing to continue to grow our business; decline in demand for our products and services; maintenance of third party relationships; and conditions in the debt and equity capital markets. A further list and description of these risks, uncertainties, and other factors can be found in the company’s most recently filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including in the sections captioned “Forward-Looking Statements” and “Risk Factors,” and in the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, on the company’s website (www.applieddigital.com) under “Investors,” or on request from the company. Information in this press release is as of the dates and time periods indicated herein, and the company does not undertake to update any of the information contained in these materials, except as required by law.
Montana-Dakota Utilities uzavřela s Applied Digital smlouvu o dodávkách elektřiny pro plánovanou AI továrnu Polaris Forge 3 v Severní Dakotě. Areál má při plné kapacitě spotřebovat 430 megawattů.
, /PRNewswire/ -- MDU Resources Group, Inc.'s (NYSE: MDU) subsidiary, Montana-Dakota Utilities Co., has entered into an electric service agreement (ESA) with Applied Digital Corporation (NASDAQ: APLD) to provide power to Polaris Forge 3, an AI Factory near Center, North Dakota.
At full capacity, the campus would require 430 megawatts of electricity. Under the ESA, Applied Digital would be responsible for the costs of purchasing the energy directly from the market or through other power supply arrangements. Applied Digital anticipates initial operations to commence in August 2027.
Polaris Forge 3 will expand Applied Digital's footprint in North Dakota, where the company is developing purpose-built campuses designed to support high-density artificial intelligence workloads. Applied Digital has previously announced a 15-year lease with a U.S. based high investment-grade hyperscaler for this site.
"Polaris Forge 3 is another example of how Applied Digital is turning power into operational AI capacity through disciplined execution and long-term partnerships," said Wes Cummins, Chairman and CEO of Applied Digital. "This campus is expected to create approximately 200 full-time jobs, generate meaningful property tax revenue and support long-term growth across Oliver County and the surrounding region. We believe AI infrastructure should create value well beyond the campus, and we're proud to continue building in North Dakota."
Montana-Dakota Utilities currently serves Applied Digital at Polaris Forge 1, its AI Factory near Ellendale, North Dakota, where the companies have worked together to integrate significant power demand while maintaining reliable, cost-effective service for customers, crediting $38.4 million back to North Dakota customers over the past three years.
"This proposed project reflects the growing interest in North Dakota as a location for large energy users," said Nicole Kivisto, president and CEO of MDU Resources. "We are committed to serving these customers in a way that benefits our communities, supports the regional grid and delivers value to our customers."
Approval of the ESA and other regulatory filings by the North Dakota Public Service Commission is required for the company to provide power under the agreement with Applied Digital.
About MDU Resources Group, Inc.
MDU Resources Group, Inc., a member of the S&P SmallCap 600 index, strives to deliver safe, reliable, cost-effective and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. For more information about MDU Resources, visit www.mdu.com or contact the investor relations department at [email protected].
About Applied Digital Corporation
Applied Digital (Nasdaq: APLD) named Best Data Center in the Americas 2025 by Datacloud — designs, builds, and operates high-performance, sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. Headquartered in Dallas, TX, and founded in 2021, the company combines hyperscale expertise, proprietary waterless cooling, and rapid deployment capabilities to deliver secure, scalable compute at industry-leading speed and efficiency, while creating economic opportunities in underserved communities through its award-winning Polaris Forge AI Factory model. Learn more at applieddigital.com or follow @APLDdigital on X and LinkedIn.
