Applied Digital Outperforms Q1 Projections as AI Infrastructure Demand Surges
Applied Digital Corporation (APLD) posted first-quarter adjusted sales of $300.39 million, far exceeding the $132.16 million that Wall Street analysts projected. The company's adjusted net loss came in at just 1 cent per share, which was much smaller than the 30-cent per share loss anticipated by market researchers. Most of this growth came from its high-performance computing hosting division, which brought in $262.6 million. Although the stock initially climbed in premarket trading following the news, it ultimately closed down 6.04% at $23.81 during regular trading hours.
The company's leadership noted that capacity for AI data centers is nearly full, with clients already locking up space for 2027 and looking ahead to 2028 and 2029. To secure this future business, the firm started its fiscal year 2027 with roughly $36 billion in committed revenue across its campuses. It is focusing on signing 15-year, guaranteed-payment contracts with major, financially stable AI companies.
Investors will want to monitor the company's aggressive expansion plans, which include bringing over 600 megawatts of power online in the coming year. While its main operations remain in North Dakota, the business is building new sites in Louisiana and Alabama, which are slated to generate revenue by early 2027. It has also locked down 1 gigawatt of potential power capacity in Finland to mark its first international expansion, and expects to reach 3.5 to 4 gigawatts of total capacity by the end of 2030.
Key points
- The company generated $300.39 million in adjusted first-quarter revenue, easily topping the $132.16 million projected by analysts.
- Its adjusted loss of 1 cent per share was significantly smaller than the 30-cent per share loss that Wall Street had estimated.
- High-performance computing hosting served as the main growth engine, contributing $262.6 million to the quarterly total.
- The firm holds approximately $36 billion in backlogged contract revenue as it enters its new fiscal year.
- Plans are underway to expand total power capacity to between 3.5 and 4 gigawatts by the end of 2030.
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What were the financial results for Applied Digital's first quarter?
The company reported adjusted revenue of $300.39 million, far ahead of the $132.16 million estimate. Its adjusted loss was 1 cent per share, much narrower than the projected 30-cent loss.
How much contracted revenue does the company have?
The firm began fiscal 2027 with about $36 billion in secured contract revenue spanning five campuses, three states, and two geographic regions.
What are Applied Digital's long-term expansion goals?
The company aims to add over 600 megawatts of capacity in the next year and targets a total operating portfolio of 3.5 to 4 gigawatts by the end of 2030.