Updated 8 October 2026. Applied Digital (APLD) reported fiscal first-quarter 2027 revenue of $341.9 million, up 322 percent year on year, after the close on Wednesday 7 October. The stock had closed at $23.81 that day, down 6.04 percent, and traded at $24.94 after hours, up 4.75 percent, as of 7:59 p.m. Eastern (StockAnalysis). Leases now cover about 1.41 GW of critical IT load across five campuses, worth about $36 billion of contracted base-term revenue (Applied Digital). Verdict: revenue and adjusted earnings came in well above published estimates, but the GAAP loss widened to $221.0 million and the build-out still runs on debt. The stock is priced near the lowest Street target, which makes the financing, not demand, the swing factor.
Key facts
- Revenue: $341.9 million, up 322 percent from the prior-year quarter. Adjusted revenue, which excludes the consolidated ChronoScale business, was $300.4 million (Applied Digital, 7 October 2026).
- Losses: net loss attributable to common stockholders of $221.0 million, or $0.76 a share. Adjusted net loss was $4.1 million, or $0.01 a share.
- Adjusted EBITDA: $64.4 million, against $0.5 million a year earlier. Net operating income was $58.8 million.
- Revenue mix: services revenue $262.8 million, up 225 percent; data center rental revenue $79.1 million.
- Contracted base: leases for about 1.41 GW across five campuses, about $36 billion of base-term revenue, or about $86 billion if all renewal options are exercised.
- Polaris Forge 1: 250 MW now live after the second 75 MW phase was delivered in October; a third 150 MW building is under construction.
- Financing: $1.59 billion of 7.000 percent senior secured notes due 2031, issued at par to fund the third Polaris Forge 1 building and repay a $300 million bridge facility.
- Share price: $23.81 close on 7 October (-6.04%); $24.94 after hours (+4.75%) (StockAnalysis).
What Applied Digital reported
The quarter ended 31 August. Revenue more than quadrupled from a year earlier to $341.9 million, and adjusted revenue, the measure most analysts model, was $300.4 million. Services revenue, which includes tenant fit-out work billed to the hyperscaler customer, was $262.8 million. Data center rental revenue, the 15-year rent that sits behind the contracted backlog, was $79.1 million.
By segment, HPC Hosting brought in $262.6 million of revenue and $33.4 million of operating profit, and the older Data Center Hosting business $37.8 million of revenue and $13.3 million of operating profit, according to the company’s results tables.
The GAAP loss is the other side of the picture. Net loss attributable to common stockholders was $221.0 million, or $0.76 a share. On an adjusted basis the company was close to break-even, with a loss of $4.1 million, or $0.01 a share, and adjusted EBITDA of $64.4 million.
Published estimates before the release varied by source and by revenue definition: 24/7 Wall St. put consensus at a loss of $0.27 a share on revenue of $111.2 million, while other aggregators showed a loss of about $0.30 on about $116 million. On either basis, adjusted revenue and adjusted EPS were well above what the Street had modelled. FinanceFeeds’ pre-results preview explains why those estimates are hard to compare with the company’s reported figures.
The leasing story: 1.41 GW and $36 billion
Applied Digital now has leases for about 1.41 GW of critical IT load at five campuses. On their base terms they are worth about $36 billion of revenue, and about $86 billion if every renewal option is exercised. The release also reiterated the 210 MW, 15-year lease at Delta Forge 2 with a tier-one, investment-grade hyperscaler, worth about $5.2 billion of base-term revenue, with operations expected to start in the first half of 2028.
At Polaris Forge 1 in North Dakota, live capacity reached 250 MW after the second 75 MW phase came online in October. CEO Wes Cummins said the goal is to make Applied Digital “the category leader” in purpose-built AI factories for tier-one, investment-grade hyperscalers.
Why the stock fell on results day
APLD dropped 6.04 percent during the regular session on 7 October, before the numbers were out, in line with weakness across AI-infrastructure names that rely on heavy financing. The after-hours move recovered most of that. The stock has been under pressure for weeks: it closed at $25.38 on 2 October and $28.95 on 11 August, the date of FinanceFeeds’ APLD scenario analysis.
The reason is the balance sheet. Each new campus is funded with debt before it produces rent, and the new $1.59 billion of notes carries a 7 percent coupon. Investors who are bullish see a landlord with a long-term contracted base; those who are cautious see a company that needs capital markets to stay open until the rent arrives.
APLD stock scenarios: bull, base and bear
All percentages are measured from the 7 October close of $23.81. Note that even the base case sits well above the current price: the stock trades close to the lowest published target.
| Scenario | APLD level | What has to happen | Anchor |
|---|---|---|---|
| Bear | ~$22 (-7.6%) | Financing costs rise further, the after-hours gain fades, and the market keeps valuing APLD on near-term GAAP losses rather than contracted rent. | Rothschild & Co Redburn’s $22 target with a Hold rating (Alexander Haissl, initiated 21 September 2026). |
| Base | ~$38 (+59.6%) | Polaris Forge 1 rent ramps as scheduled, Delta Forge construction stays on budget, and new capacity is financed without heavy dilution. | UBS’s $38 (Ryan Gravett, Buy, 23 September) and Morgan Stanley’s $38 (Stephen Byrd, Hold, 18 September). |
| Bull | ~$83 (+248.6%) | The market values the 1.41 GW lease book like a stabilised data center landlord, and further hyperscaler leases are signed. | Needham’s $83 target (John Todaro, Buy, 14 August); Northland has $82 and B. Riley $75. |
What to watch next
- Thursday’s regular session. The $24.94 after-hours price is thinly traded; the first full session after the release is the real test.
- Analyst revisions. Several firms, including Craig-Hallum and Wells Fargo, maintained Buy ratings in September without published targets in the free data; post-results notes will show whether the range moves.
- Rent ramp. Data center rental revenue of $79.1 million should rise as the 250 MW at Polaris Forge 1 starts paying rent in full.
- AI networking peers. The same data center build-out drives optical and networking names – see FinanceFeeds’ Ciena stock analysis.
Quick take: Applied Digital’s fiscal Q1 showed revenue of $341.9 million and adjusted EBITDA of $64.4 million, both far above a year ago, alongside a $221.0 million GAAP loss. The lease book is now about 1.41 GW and $36 billion. At $23.81 the stock sits just above Redburn’s $22, the lowest target; the case for upside rests on the rent arriving before the debt becomes a problem.
FAQ
What were Applied Digital’s fiscal Q1 2027 results?
Revenue of $341.9 million, up 322 percent year on year; adjusted revenue of $300.4 million; a net loss attributable to common stockholders of $221.0 million, or $0.76 a share; an adjusted net loss of $4.1 million, or $0.01 a share; and adjusted EBITDA of $64.4 million.
Did Applied Digital beat earnings estimates?
On adjusted figures, yes. Published consensus estimates ranged from about $111 million to $116 million of revenue and a loss of $0.27 to $0.30 a share, depending on the source. Adjusted revenue was $300.4 million and the adjusted loss was $0.01 a share.
How did APLD stock react to earnings?
APLD closed at $23.81 on 7 October, down 6.04 percent before the release, then traded at $24.94 after hours, up 4.75 percent (StockAnalysis, 7:59 p.m. Eastern).
How much contracted revenue does Applied Digital have?
About $36 billion of base-term lease revenue on about 1.41 GW of critical IT load at five campuses, or about $86 billion if all renewal options are exercised.
What is the price target for APLD stock?
Recent targets include $22 from Rothschild & Co Redburn (Hold), $38 from UBS (Buy) and Morgan Stanley (Hold), $75 from B. Riley, $82 from Northland and $83 from Needham (StockAnalysis).
Why does Applied Digital lose money if revenue is growing?
The GAAP loss reflects depreciation, interest and other costs of building data center campuses that are not yet fully producing rent. The adjusted loss, which excludes some of those items, was only $4.1 million.
Related coverage
- Applied Digital earnings preview: what to watch on October 7
- Applied Digital stock prediction: $68 bull case vs $16 bear case
- Ciena (CIEN) stock: AI networking bull and bear case
Sources: Applied Digital fiscal first-quarter 2027 results release, 7 October 2026 (GlobeNewswire; Form 8-K filed with the SEC) – revenue, losses, adjusted figures, segments, leases, Polaris Forge 1, Delta Forge 2, notes offering and CEO comment; StockAnalysis (daily closes 1-7 October 2026, after-hours price, analyst ratings and targets); 24/7 Wall St. (consensus estimate, 7 October 2026); MarketBeat (consensus estimate); FinanceFeeds (11 August 2026 share price).
This article is for information only and is not investment advice. Share prices move continuously and the figures above were accurate at the time of writing. Nothing here is a recommendation to buy or sell any security. Do your own research and consider your own circumstances before investing.
