Applied Digital reports quarterly earnings, providing visibility into AI infrastructure provider demand and margin trends.
Applied Digital Corporation (NASDAQ: APLD) is scheduled to report fiscal first-quarter 2027 earnings Wednesday after market close, with investors focused on revenue trends, a newly announced expansion in Finland, and a notably divergent set of analyst views on the stock.
The company faces challenging comparisons to the prior quarter. Analysts expect a loss of 30 cents per share on revenue of $132.16 million, roughly half of the previous quarter's reported results. Last quarter, Applied Digital reported 4 cents per share, beating the consensus estimate for a 22-cent loss, and posted $258.75 million in revenue against a consensus of $94.84 million.
The prior quarter's strong revenue benefited substantially from $152.4 million in one-time tenant fit-out services, while recurring data center rental revenue was $50.6 million. Management's commentary on rental growth will be closely watched—Polaris Forge 1 is now at 250 MW operational capacity following 75 MW that came online October 2.
Applied Digital will also update investors on its contracted portfolio. As of May 31, the company held approximately 1,410 MW of contracted critical IT load across five campuses, representing about $36 billion in base-term lease revenue, or $86 billion including renewal options.
Attention is expected to focus as well on Tuesday's announcement of an agreement for up to 1 gigawatt of potential power in Finland. This marks the company's first development outside the United States, with initial power expected in 2028. No customer for the capacity has been announced.
Analyst opinion remains mixed. The stock carries a consensus Buy rating with an average price target of $61.65, though recent initiations show a wide range: UBS assigned Buy with a $38 target (September 23), Rothschild & Co assigned Neutral with a $22 target (September 21), and Wells Fargo assigned Overweight with a $50 target (September 17). At the time of reporting, APLD shares were trading 4.74% lower at $24.15.