Applied Digital's Q3 revenue more than doubles on growing data center services demand

Applied Digital

08/04/2026 21:15

Overview

Data center operator's fiscal Q3 revenue rose 139% yr/yr, driven by HPC Hosting ramp-up

Company posted net loss of $100.9 mln due to higher expenses and Cloud Services write-down

Adjusted net income turned positive at $33.2 mln, reflecting core operations' strength

Outlook

Applied Digital expects initial operations at Delta Forge 1 campus to begin in mid-2027

Company anticipates second 150 MW HPC data center at Polaris Forge 1 to come online in 2026

Applied Digital sees strong demand for high-performance AI data center capacity from hyperscalers

Result Drivers

HPC HOSTING RAMP-UP - Revenue growth was mainly driven by the first 100 MW HPC data center at Polaris Forge 1 becoming fully operational and contributing a full quarter of revenue

DATA CENTER HOSTING IMPROVEMENTS - Modest revenue growth in Data Center Hosting segment was driven by performance improvements across facilities

HIGHER EXPENSES - Increased costs from tenant fit-out services, personnel, and professional services, as well as a write-down of Cloud Services assets, weighed on results

Company press release: ID:nGNX5YShyp

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$126.6 mln
Q3 Adjusted EPS
$0.09
Q3 Adjusted Net Income
$33.2 mln
Q3 Net Income
-$100.9 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"

Wall Street's median 12-month price target for Applied Digital Corp is $42.00, about 66.8% above its April 7 closing price of $25.18

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)