Powell Comments Sink APLD Shares Before Earnings

“We believe the CoreWeave lease marks a defining moment for Polaris Forge 1 and validates our vision to build AI factories at hyperscale.”

– Wes Cummins, CEO
Sentiment: Transformational

“We are already in advanced negotiations with several other investment-grade hyperscalers, and we see a dramatically expanding opportunity set.”
– Wes Cummins, CEO
Sentiment: Growth-oriented, bullish on demand.

“We expect to break ground on one, potentially two additional campuses before the end of this year.”
– Wes Cummins, CEO
Sentiment: Aggressive expansion signaling robust pipeline visibility.

“With the CoreWeave lease, we believe we’re now roughly halfway toward our internal goal of $1 billion in annual NOI over the next 3 to 5 years.”
– Wes Cummins, CEO
Sentiment: Long-term target reaffirmation, confidence in execution.

“We’ve refined our process, cut build times nearly in half, and believe we can deliver at unprecedented speed for large-scale AI workloads.”
– Wes Cummins, CEO
Sentiment: Competitive advantage positioning, operational excellence.

We’re listening in to the conference call and will post any important notes.

Appled Digital’s conference call starts in 5 minutes.

If you’d like to listen in, you can here.

We might look back at tonight as one of the moments that took the AI trade to another level.

Microsoft just delivered 39% growth for Azure. Meta delivered blowout earnings and guided to capex spend of $107 billion next year.

And in a much smaller corner of AI infrastructure, Applied Digital is up 8% after topping expectations and announcing a massive deal with CoreWeave.

“These long-term leases mark a defining moment for Polaris Forge 1, one of North America’s most ambitious data center projects.” – Wes Cummins

“Building on the momentum from these leases and the surging demand for AI infrastructure, we’re actively marketing our multi-gigawatt pipeline to a diverse group of customers.”

Wes Cummins

“We believe the future is very bright for Applied Digital.”

Wes Cummins

Applied Digital Corporation reported its fiscal fourth quarter and full year 2025 results, highlighting a significant increase in revenue and a decrease in net loss compared to the previous year.

For Q4 2025, the company achieved revenues of $38.0 million, a 41% increase from the prior year, driven by increased capacity in its Data Center Hosting Business.

The net loss for the quarter was $26.6 million, a 25% improvement from the previous year’s loss.

The company also reported an adjusted net loss per share of $0.03. For the full fiscal year, revenues rose by 6% to $144.2 million, while the net loss widened to $161.0 million due to increased operating expenses and a significant loss on debt conversion.

Key developments include long-term lease agreements with CoreWeave, expected to generate $11 billion in contracted revenue over 15 years, and the expansion of its data center capacity. The company is also actively marketing its multi-gigawatt pipeline to a diverse group of customers.

• Revenue of $38 million
• Net loss of $12 per share

That’s a beat on the top and bottom lines. Shares are up 6%.

As of 2:10 p.m. ET, shares of Applied Digital are up 1.2%.

Its a mixed day in the broader data center space. MARA Holdings is up 3% while CoreWeave has dropped 4.8%.

Here’s a look at what Wall Street expects tonight:

• Revenue: $37.12 million
• Adjusted EPS: -$.16
• Capital Expenditures: $154 million

The company is shifting away from Cloud Services and toward a larger data center footprint, so revenue growth is expected to accelerate in 2026. Right now, Wall Street expects Applied Digital to report $168 million in sales this year and $365 million in 2026.