Applied Digital Surpasses Revenue Estimates in Strong Earnings Report

Applied Digital Corporation (APLD) recently announced its earnings for the first quarter of Fiscal Year 2026, showing promising growth despite a net loss. The company reported earnings per share of -$0.11, which was slightly better than the analysts’ consensus estimate of -$0.13. Notably, Applied Digital achieved a remarkable 84% year-over-year increase in sales, with revenue reaching $64.2 million, significantly surpassing the projected $50 million.

Major Developments and Revenue Growth

Applied Digital secured a significant 150 MW lease with CoreWeave (CRWV) at its Polaris Forge 1 campus. This deal fully leases the site and is expected to generate around $11 billion in revenue over the next 15 years. Additionally, the company has commenced construction on its second facility, Polaris Forge 2, which aims for an eventual capacity of one gigawatt.

To support its expansion, Applied Digital raised over $360 million in funding, tapping into a $5 billion equity facility from Macquarie. The ongoing high-performance computing (HPC) and crypto data center hosting divisions are also showing progress. The first 100 MW HPC facility is on schedule to become operational by late 2025, generating $26 million this quarter from installation activities.

Crypto Operations and Financial Overview

• Crypto mining operations generated $37.9 million in revenue, showing a 9% increase from the previous year.
• Despite rising revenues, overall expenses increased due to business expansion, resulting in a net loss of $27.8 million for the quarter.
• Applied Digital aims for a projected $1 billion in annual net operating income over the next five years.

Market Outlook for APLD Stock

According to analysts, APLD stock carries a Strong Buy consensus rating, based on eight Buy recommendations and one Hold in the last three months. The average price target for APLD shares is $26.19, suggesting a potential downside risk of 10.5%. However, these estimates may be subject to change following the recent earnings announcement.

Overall, Applied Digital is focused on long-term growth strategies, continuing to invest in its expanding operations while navigating associated expenses.