Applied Digital Crushes Q4 Revenue Estimates as AI Infrastructure Demand Surges 407%

Applied Digital Delivers Strong Q4 Performance Amid AI Infrastructure Boom

Applied Digital exceeded Wall Street estimates for fourth-quarter fiscal 2026 revenue, posting impressive results driven by surging AI infrastructure demand from an expanding client base1

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. The company reported total revenue up 407% year-over-year, with services revenue reaching $208.2 million, up 308%, and data center revenue totaling $50.6 million2

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. APLD shares rose 5.4% in extended trading following the announcement, adding to the stock's 7.6% gain year-to-date as of Monday's close1

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The company designs, builds and operates data centers while providing colocation services for artificial intelligence, networking and blockchain workloads1

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. Applied Digital ended the quarter with approximately $4.2 billion in cash, cash equivalents and restricted cash, alongside $5 billion of total debt2

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Massive Contracted Capacity Positions Company as Scaled Alternative Supplier

As of May 31, Applied Digital has executed long-term contracts with AI customers representing approximately 1,410 MW of contracted critical IT load across five campuses2

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. This substantial data-center capacity positions the company to meet the needs of AI and networking customers racing to secure infrastructure to power their models and services1

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. Total live capacity at Polaris Forge 1 has reached 175 MW, with additional buildings at Polaris Forge 1, along with Polaris Forge 2, Polaris Forge 3, Delta Forge 1 and Delta Forge 2 in various stages of construction2

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Wes Cummins, chairman and CEO of Applied Digital, emphasized the company's strategic positioning: "Nearly three years ago, we made a deliberate decision to build a company that scales, not just a company that builds data centers. Combined with our proven supply chain and design approvals from every major hyperscaler, we believe this repeatable, differentiated platform is why we have emerged as one of the clear leaders in AI infrastructure"2

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Analysts Raise EBITDA Estimates on Strong AI Demand Outlook

Citizens reiterated a Market Outperform rating and $60.00 price target on APLD stock following the quarterly revenue estimates beat, reinforcing its view that Applied Digital continues to emerge as a scaled alternative supplier of AI infrastructure at a time when AI demand remains well ahead of available supply3

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. The firm raised its fiscal 2027 EBITDA estimates to $432 million from $426 million previously, and increased fiscal 2028 EBITDA estimates to $1.19 billion from $1.13 billion3

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The revised EBITDA estimates primarily reflect higher HPC revenue assumptions and increased contracted capacity expected to come online over the next several years3

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. The $60 price target implies approximately 21 times fiscal 2028 estimated EV/EBITDA, with investor focus increasingly shifting toward the company's development pipeline and the incremental value that could be created through future lease execution with long-term contracts with AI customers3

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. The company counts CoreWeave as a client among its growing roster of data centers from AI clients1

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. Watch how Applied Digital executes on its 1.4 gigawatts of contracted capacity and whether it can maintain its competitive edge as a scaled alternative supplier in the face of intensifying competition for AI infrastructure projects.