Applied Digital beats revenue estimates as AI data center demand accelerates to new highs

Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand

April 8 (Reuters) - Applied Digital (APLD.O), opens new tab on Wednesday beat estimates for quarterly revenue, driven by strong demand for its data center services from enterprises to support a boom in generative AI applications. Big tech and AI companies are racing to lock ⁠in power and data center capacity, signing long-term deals worth billions of dollars as demand for AI computing surges. The rapid rise of AI is reshaping data center design, driving demand for facilities that can handle soaring power and cooling needs. The shift ⁠favors Applied Digital, which expects hyperscalers to pour more than $400 billion annually into infrastructure. In 2025 alone, companies announced 17 major high-performance computing ⁠deals worth more than $70 billion, according to B. Riley Securities analysts, underscoring the scale of investment ⁠flowing into AI infrastructure. The company's third-quarter revenue rose 139% to $126.6 million, compared with ⁠analysts' estimates of $76.6 million, according to data compiled by LSEG. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

Applied Digital Delivers Strong Q3 Results, Sees 'Clear Acceleration' In AI Data Center Demand - Applied

Applied Digital shares are trending after earnings. What's driving APLD stock? Applied Digital Q3 Highlights Total revenue was up 139% on a year-over-year basis, primarily driven by growth in the company's HPC hosting business combined with performance improvements in other segments. "We now operate one of the only 100 MW direct-to-chip liquid-cooled data centers online today, and more importantly, it is fully operational," said Wes Cummins, chairman and CEO of Applied Digital. "We believe that's what matters to our customers -- turning power into live AI capacity, delivered on time and performing as expected. We are also starting to see the earnings power of our platform come through, with a full quarter of revenue from our first building now recognized." Applied Digital ended the quarter with approximately $2.1 billion in cash, cash equivalents and restricted cash, and $2.7 billion of total debt. What's Next For Applied Digital? Construction remains on schedule across Applied Digital's North Dakota campuses. ELN-2 at Polaris Forge 1 is now fully operational and the next two 150 megawatt facilities are continuing to advance. At Polaris Forge 2, the company said both buildings are progressing well with foundations largely complete. Applied Digital also broke ground on Delta Forge 1 during the quarter. The company expects initial operations to begin at that location in mid-2027. "We are seeing a clear acceleration in demand for high-performance AI data center capacity, with hyperscalers as aggressive as we have ever seen them," Cummins said. Applied Digital executives will further discuss the quarter on an earnings call scheduled for 5 p.m. ET. APLD Shares Rise After The Bell APLD Price Action: Applied Digital shares were up 2.37% in after-hours, trading at $28.45 at the time of publication on Wednesday, 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.