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

Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand

July 27 - Applied Digital (APLD.O), opens new tab beat Wall Street estimates for fourth-quarter revenue on Monday, riding on robust demand for its data centers from an expanding roster of AI clients. Shares of the company, which counts CoreWeave (CRWV.O), opens new tab as a client, rose 5.4% in extended trading. They have risen 7.6% this year, as of Monday's close. Applied Digital designs, builds and operates data centers and provides colocation services for artificial intelligence, networking and blockchain ⁠workloads. The company has signed long-term colocation contracts with AI and networking customers racing to secure data-center capacity to power their models and services. Here are some details: Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

Applied Digital Stock Climbs on Q4 Double Beat - Applied Digital (NASDAQ:APLD)

* Applied Digital stock is trending. Why is APLD stock moving? Applied Digital Q4 Earnings Highlights Total revenue was up 407% on a year-over-year basis. Services revenue came in at $208.2 million, up 308%, and data center revenue totaled $50.6 million. Applied Digital ended the quarter with approximately $4.2 billion in cash, cash equivalents and restricted cash, and $5 billion of total debt. "Nearly three years ago, we made a deliberate decision to build a company that scales, not just a company that builds data centers," said Wes Cummins, chairman and CEO of Applied Digital. "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." As of May 31, the company has executed long-term leases representing approximately 1,410 MW of contracted critical IT load across five campuses. Total live capacity at Polaris Forge 1 is up to 175 MW. Additional buildings at Polaris Forge 1, along with Polaris Forge 2, Polaris Forge 3, Delta Forge 1 and Delta Forge 2, are in various stages of construction. Applied Digital executives will discuss the company's quarterly results on an earnings call at 5 p.m. ET. APLD Shares Rise After The Close APLD Price Action: Applied Digital shares were up 3.17% in after-hours, trading at $27.24 at the time of publication on Monday, according to Benzinga Pro. Image: Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Citizens reiterates Applied Digital stock rating on AI demand outlook By Investing.com

Investing.com - Citizens reiterated a Market Outperform rating and $60.00 price target on Applied Digital (NASDAQ:APLD) stock following the company's fourth-quarter fiscal 2026 earnings report. The stock currently trades at $27.39, up 119% over the past year, though InvestingPro analysis suggests the shares are slightly overvalued relative to its Fair Value estimate. The firm said results reinforced its view that Applied Digital continues to emerge as a scaled alternative supplier of AI infrastructure at a time when demand remains well ahead of available supply. The company now has approximately 1.4 gigawatts of contracted capacity in place. Citizens raised its fiscal 2027 EBITDA estimate to $432 million from $426 million previously. The firm also increased its fiscal 2028 EBITDA estimate to $1.19 billion from $1.13 billion previously. According to InvestingPro Tips, 2 analysts have revised their earnings upwards for the upcoming period, reinforcing the positive outlook. For investors seeking deeper insights, InvestingPro offers 12 additional exclusive tips and comprehensive Pro Research Reports covering APLD and 1,400+ other US equities. The revised estimates primarily reflect higher HPC revenue assumptions and increased contracted capacity expected to come online over the next several years. The estimates incorporate fourth-quarter fiscal 2026 results and updated development assumptions following the company's continued execution across its leased campuses. The $60 price target implies approximately 21 times fiscal 2028 estimated EV/EBITDA. Citizens said investor focus is increasingly shifting toward the company's development pipeline and the incremental value that could be created through future lease execution. In other recent news, Applied Digital reported impressive fiscal fourth-quarter 2026 results, with adjusted earnings of $0.04 per share on revenue of $258.7 million. This performance significantly surpassed Wall Street's expectations, which had anticipated a $0.19 loss on $95.32 million in sales. The company attributed its success to a substantial increase in its AI infrastructure business. Additionally, Needham reiterated a Buy rating on Applied Digital, maintaining a price target of $83.00. The firm's quarterly revenue exceeded expectations, although the beat was primarily due to low-margin fit-out services, which are considered one-time events. After adjusting for these factors, the company's base rent revenue aligned with Needham's estimates, and its bitcoin mining results slightly exceeded projections. These developments reflect a positive trajectory for Applied Digital, according to Needham's analysis. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.