That wraps up our initial coverage of Applied Digital’s Q1 results. Thank you for stopping by!
Tune in to the earnings call tonight at 5 PM EST for more updates.
Revenue climbed 432% year over year as HPC hosting at the Polaris Forge campuses ramped, far exceeding expectations. Applied Digital now has about $36 billion of contracted revenue over initial base terms.
At $23.81, Applied Digital sits within a few dollars of its 52-week low of $19 and less than half its $50.73 high, even with revenue up 406.6% year over year and 12x sales. No earnings multiple exists yet, with EV/EBITDA at -7.4, and the $66.43 consensus target from 13 buy ratings against 2 holds is nearly triple the price.
Applied Digital just reported fiscal Q1 2027 earnings, with shares initially up roughly 3% following the report. Here are the key numbers:
Quick Read:
Applied Digital crushed expectations, with adjusted EPS nearly reaching breakeven and reported revenue soaring 322% year over year.
The top-line beat was enormous, while $64.4 million in adjusted EBITDA and $58.8 million in NOI provide an early look at earnings power as more AI data center capacity comes online.
The company reported a GAAP net loss attributable to common shareholders of $221.0 million, or $0.76 per share.
While investors continue waiting for Applied Digital’s earnings results, the company just posted a fresh construction update across its North Dakota campuses.
Applied Digital said another 75 MW is now Ready for Service at Polaris Forge 1, bringing the campus to 250 MW. The company is also preparing for the building’s first utility power energization, while generator and mechanical equipment installation progresses.
Elsewhere, commissioning continues at Polaris Forge 2, while construction at Polaris Forge 3 is moving vertically as additional precast wall panels are installed.
The update is notable because execution and bringing additional capacity online remain a big piece of Applied Digital’s growth story.
Applied Digital’s fiscal Q1 results are now running about 10 minutes later than expected.
We’ll update this live blog as soon as results are out!
Project financing and capital structure has come up on all four of the last earnings calls, and after this afternoon's look at the buildout burn, that is the thread most likely to set the after-hours move tonight. Analysts have pressed just as consistently on lease economics and development yields, so management's answer on how the next tranche of capacity gets funded, may be the most important parts of the earnings call tonight.
Operating cash flow has turned positive and reached $133 million in Q2 2026, but capex of $1.29 billion in the same quarter swamped it for free cash flow of roughly negative $1.2 billion. Every dollar is going into buildout, with just $2 million returned to shareholders in the latest quarter. That spending curve is the real context for tonight's numbers on the 175 MW now live at Polaris Forge 1.
Gross margin has swung wildly, from 42.5% in Q1 2026 down to 15.7% in Q2 2026 as revenue doubled to $259 million while operating margin stayed deep in the red at -45.2%. Tonight's test is whether recurring base rent from the live Polaris Forge 1 capacity lifts gross margin back toward the 40% zone, which is the cleanest read on whether the lease model is actually scaling.
+ 3 more tracked holders
As of Jun 30, 2026 quarter end · 13F disclosures lag ~45 days — long positions only, tracked filers only.
Across 11 filers, seven added and only one trimmed Applied Digital as of the June 30 quarter end, with Tiger Global and Point72 among four fresh positions and zero exits. That disclosure is roughly 45 days stale and reflects positioning as of quarter end, framing the institutional setup heading into tonight's earnings report.
This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. Simply stay on this page, and new updates will appear below automatically.
We expect Applied Digital to release Q1 earnings shortly after 4:05 p.m. ET.
A 0.36 put/call ratio into tonight's report says call buyers dominate the Oct. 9 expiration, though readings that lopsided can also mark the point where the market already expects strong earnings tonight. At 158.6% implied volatility on the $25.50 strike, options are priced for a violent reaction either way, and the heaviest put open interest sits at $24 and $25, just below where the stock trades.
Down 5.7% to $23.89 hours before Applied Digital reports earnings today, so the AI data center story gets repriced tonight on Q1 earnings. The company currently trades at a $7.2 billion market cap.
The key assumptions for Applied Digital's Bull Case still hold: the backlog is signed and the first 175 MW is energized. The swing factor is the recurring base rent line we flagged this afternoon. A clean step-up in lease revenue with margin recovering toward prior-year levels strengthens the thesis, while another quarter carried by fit-out revenue at a compressed margin would be bearish.
Applied Digital heads into earnings with Wall Street expecting a loss of $0.3023 per share on $124.57 million in revenue. Revenue is expected to come in below last quarter’s fit-out-heavy total, but the headline number may matter less than the underlying revenue mix.
The bigger focus is recurring base rent from the 175 MW now live at Polaris Forge 1. With roughly $36 billion in signed lease revenue, investors will be watching for evidence that Applied Digital can steadily convert its massive contracted backlog into recurring NOI.
New leasing could be another major catalyst. Applied Digital has a 1.7 GW pipeline, but growth comes with a cost: management has guided to roughly $600 million in capital expenditures.
With debt-to-equity around 2.86, additional lease wins and rising base rent could strengthen the case for the company’s $1 billion NOI target.
Live coverage has ended. The full story is below.
Applied Digital (NASDAQ:APLD) is expected to report fiscal Q1 2027 results today at 4:05 PM ET after the market closes. Shares fell 5.8% to $23.87 in today’s session, and this report will offer one of the first reads on how $36 billion of signed leases will turn into recurring rent.
Last quarter, fiscal Q4 revenue reached $258.75 million, up 580.7% year over year and far ahead of the $95.32 million consensus. Adjusted EPS of $0.04 exceeded the -$0.19 estimate.
Of that total, $152.4 million came from one-time tenant fit-out work, while base rent added $44.1 million at a 91% NOI margin.
Shares fell 12.77% the next day, then rose 17.47% within a week, but have slipped 9.48% over the past month. CEO Wes Cummins said all construction projects are on time and on budget, and the company now targets a $1 billion NOI run rate a year from now. The company is well ahead of schedule, with management reporting: “We’re three years ahead of schedule.”
| Metric | Q1 FY27 Estimate | YoY Change | FY27 Estimate | FY28 Estimate |
|---|---|---|---|---|
| Revenue | $124.57M | +94% | $830.03M | $1.92B |
| EPS | -$0.3023 | Larger loss vs. -$0.11 | -$1.088 | -$0.4835 |
The quarterly revenue estimate is well below last quarter’s total because fit-out revenue arrives in chunks. Analysts model FY28 revenue growth of 131% as new campuses open, yet the FY28 EPS average fell to -$0.4835 from $0.1150 60 days ago, with a range from -$1.4076 to $0.47.
Base rent is the first big metric to watch with Applied Digital tonight. Management said HPC results mainly came from the initial 100 megawatts, so this quarter will test whether the added 75 megawatts raise recurring rent above $44.1 million.
Leasing is another important factor for investors to watch. Management cited advanced talks with existing investment-grade customers for about 100 megawatts and 150 megawatts at “materially higher lease rates,” worth over $6 billion of signed revenue. Whether either deal closes remains the biggest unknown.
Funding is the third factor. Capex guidance of roughly $600 million meets about $5.0 billion of debt against $4.2 billion of cash and restricted cash, so I’ll be watching Macquarie equity funding and refinancing plans.
Customer concentration is another topic analysts will be watching. About $20 billion of signed revenue is with one hyperscaler, Polaris Forge 1 leans on CoreWeave (NASDAQ:CRWV), and stock-based compensation of $127.8 million weighed on GAAP results.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 30-Day Move |
|---|---|---|---|---|
| Q4 FY26 | +121.05% | -12.77% | +17.47% | +3.08% |
| Q3 FY26 | +142.86% | +2.7% | +17.68% | +74.38% |
| Q2 FY26 | +46.78% | +17.97% | +10.27% | +17.31% |
| Q1 FY26 | +29.03% | +0.74% | +0.74% | -15.95% |
On average, shares traded +11.54% in the week following earnings over the past year.
Contact [email protected] for any questions or corrections.
Thomas Richmond is a financial writer and content strategist with 5+ years of experience covering stocks and financial markets. He has published over 500 articles focused on individual stock analysis, helping investors better understand business fundamentals, stock valuations, and long-term opportunities.
Thomas previously served as a Content Lead at TIKR, a stock research platform, where he helped scale the company’s blog to hundreds of articles per month and contributed to a weekly newsletter reaching more than 100,000 investors.
Outside of work, Thomas enjoys weight lifting and soccer.
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