Key Takeaways
- Applied Digital reported adjusted EPS of $0.09, smashing analyst expectations of a $0.16 loss per share
- Quarterly revenue surged 139% year-over-year to $126.64 million, significantly exceeding the $75.5 million consensus
- APLD stock climbed 10% during Wednesday trading but fell 6.2% in Thursday’s premarket session
- The firm’s inaugural 100 MW direct-to-chip liquid-cooled facility is now running at full capacity
- CEO Wes Cummins noted hyperscaler demand has reached unprecedented levels
Applied Digital reported one of its most impressive quarterly performances to date, yet investors responded with a selloff in early trading.
The Dallas-headquartered AI infrastructure company announced fiscal third-quarter adjusted earnings of $0.09 per share, easily surpassing the Street’s consensus forecast of a $0.16 loss. The variance represents a significant outperformance.
Quarterly revenue reached $126.64 million, marking a 139% increase from the prior year and substantially topping the $75.5 million analyst projection. On an adjusted basis, revenue totaled $108.6 million, likewise exceeding expectations.
Applied Digital Corporation, APLD
Yet despite the strong results, APLD shares declined 6.2% to $26.07 in Thursday’s premarket session. The stock had already rallied 10% to $27.79 during Wednesday’s regular trading, supported in part by broader market strength following reports of an Iran ceasefire. The Nasdaq composite jumped 2.8% that same session.
Post-earnings profit-taking isn’t uncommon when shares have appreciated significantly heading into a results announcement. Early buyers capitalized on the momentum by exiting positions.
Unprecedented Hyperscaler Activity
CEO Wes Cummins highlighted a notable transformation in client engagement. “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,” he stated in the company’s earnings announcement.
Executives also verified that their inaugural 100 MW direct-to-chip liquid-cooled data center facility has reached full operational status and generated a complete quarter’s worth of revenue during Q3.
In January, management disclosed that it was engaged in “advanced talks” with an investment-grade hyperscaler regarding 900 megawatts of capacity distributed across three locations, with a potential agreement expected to close in early 2026.
Last August, Applied Digital finalized an expanded lease agreement with CoreWeave for an additional 150 MW facility in North Dakota. That transaction elevated the company’s total projected contracted lease revenue to approximately $11 billion, including roughly $7 billion secured through two 15-year lease agreements executed in May 2025.
Share Performance Overview
APLD has gained approximately 13% year-to-date following an exceptional 2025 performance, during which shares skyrocketed 221% — dramatically outperforming the Nasdaq’s 20% advance during the comparable timeframe.
Nevertheless, the stock remains 74% below its record closing peak of $107.28, established in August 2023, based on Dow Jones Market Data.
The company currently carries a market capitalization of $7.77 billion, with average daily share volume exceeding 24 million units.
Technical indicators currently suggest a buy signal entering the upcoming trading session.
