Applied Digital reports Q4 2026 revenue growth of 406% YoY and $36B backlog; earnings beat $0.23 per share on Wall Street estimates.
Applied Digital Corporation, a U.S.-based designer, developer, owner, and operator of large-scale, purpose-built data centers engineered to support high-performance computing workloads including artificial intelligence and machine learning, reported financial results for the fiscal fourth quarter ended May 31, 2026.
During the quarter, Applied Digital completed the separation of its Cloud Services Business through a series of transactions that resulted in the Company owning approximately 96% of ChronoScale Holdings Corporation, a public company that owns and operates the historic cloud services business and now trades on Nasdaq under the symbol "CHRN."
The quarter marked a defining period for the Company. Since the end of the prior quarter, Applied Digital signed three new leases—at Delta Forge 1, Polaris Forge 3, and Delta Forge 2—with the same investment-grade hyperscaler, each in a different state. Delta Forge 1 and Polaris Forge 3 each provide approximately $7.5 billion in base-term contracted lease revenue, while Delta Forge 2 adds approximately $5.2 billion. Combined, these agreements represent roughly $20 billion in long-term contracted revenue from a single customer that has now selected Applied Digital three consecutive times.
With these agreements, the Company has secured 1.4 gigawatts of contracted critical IT load, representing approximately $36 billion in total contracted lease revenue—or approximately $86 billion if all renewal options are exercised. Applied Digital is building five multibillion-dollar AI Factory campuses for two hyperscalers and CoreWeave.
"Nearly three years ago, we made a deliberate decision to build a company that scales, not just a company that builds data centers," said Wes Cummins, Chairman and Chief Executive Officer. "We call it our franchise model—a core team of design, construction, and operations professionals replicated across every campus, in each market. Combined with our proven supply chain and design approvals from every major hyperscaler, we believe this repeatable, differentiated platform is why we have emerged as one of the clear leaders in AI infrastructure."
Cummins emphasized the Company's focus on execution: "We brought Polaris Forge 1's first 100 MW online on schedule and have now scaled total live capacity at the campus to 175 MW. We're not just securing power—we're turning it into operational AI capacity."
Beyond the contracted portfolio and the approximately 1.4 GW already under construction, Applied Digital is actively marketing an additional 1.7 GW of capacity across multiple states, reflecting robust demand for its AI Factories.
To fuel sustainable expansion, Applied Digital is advancing a strategic power initiative in partnership with Base Electron Corp., an independent power producer that has engaged Babcock & Wilcox to develop approximately 1.2 GW of front-of-the-meter natural gas-fired generation in the Dakotas in collaboration with regional utilities. Applied Digital shareholders own approximately 10% of Base Electron Corp., deepening access to abundant, reliable, low-cost power.
"We are still in the early innings of what we believe will likely be the largest buildout of critical infrastructure in modern economic history," Cummins said. "We see demand for high-power-density, purpose-built AI data centers remaining extremely robust. Our approach is simple: Do it the right way. For customers, that means delivering high-quality, GPU-ready facilities on time. For communities, it means creating lasting economic value. When we do right by both, our shareholders win over the long term."
The Company's Data Center Hosting Business, which operates 286 MW for bitcoin mining across two North Dakota sites, continues to deliver strong returns. As of May 31, 2026, the 106 MW facility in Jamestown, North Dakota and the 180 MW facility in Ellendale, North Dakota were operating at full capacity. During the three months ended May 31, 2026, the Business generated $37.3 million in revenue and $12.5 million in segment operating profit.
Applied Digital's HPC Hosting Business designs, builds, and operates purpose-built AI Factory data centers. As of May 31, 2026, the Company had executed long-term leases representing approximately 1,410 MW of contracted critical IT load across five campuses—Polaris Forge 1, 2, and 3 in North Dakota and Delta Forge 1 and 2 in Louisiana and another southern state. These leases represent approximately $36 billion in total contracted revenue over the initial 15-year base lease terms, or approximately $86 billion if all renewal options are exercised.
The first 100 MW data center at Polaris Forge 1 became operational in October 2025. On June 30, 2026, the Company delivered Phase 1 of Building 2 at Polaris Forge 1 (75 MW), bringing total live capacity at the campus to 175 MW. Additional buildings at Polaris Forge 1 and at Polaris Forge 2, Polaris Forge 3, Delta Forge 1, and Delta Forge 2 are in various stages of construction.
During the fiscal fourth quarter, revenue from the HPC Hosting Business totaled $203.0 million, comprising $44.1 million in base rent, $152.4 million in tenant fit-out services, and $6.5 million in tenant recoveries. The segment generated $26.2 million in operating profit.
ChronoScale, formed by combining Applied Digital's cloud services business with Ekso Bionics Holdings, Inc. on May 5, 2026, has continued to build its leadership team. The company appointed Raj Jegannathan, previously a Vice President at Tesla, as Chief Technology Officer, and Lawrence Lam, who brings more than twenty years scaling global cloud and AI platforms at companies including Supermicro, as Chief Product Officer.