Applied Digital beats quarterly revenue estimates on surging AI infrastructure demand

Applied Digital

27/07/2026 21:42

July 27 - Applied Digital APLD.O 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 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: 
The data center provider's revenue surged 407% to $258.7 million for the fourth quarter ended May 31, surpassing analysts' average estimate of $94.8 million, according to data compiled by LSEG.
Applied Digital reported per-share adjusted income of 4 cents, compared to a loss of 22 cents expected by analysts.    
"We are still in the early innings of what we believe will likely be the largest buildout of critical infrastructure in modern economic history," CEO Wes Cummins said. 
"We see demand for high-power-density, purpose-built AI data centers remaining extremely robust," Cummins added.
The company in June announced a 15-year lease with a U.S.-based hyperscaler at its Delta Forge 2 site expected to generate $5.2 billion in revenue. That followed the $7.5 billion long-term deal signed in April with an unnamed hyperscaler at its Delta Forge 1 facility.
About 70% of contracted revenue is now backed by U.S.-based investment-grade hyperscalers, the company has said.

     

 (Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila)
 ((Juby.Babu@thomsonreuters.com))