Applied Digital Q4 Results Top Estimates on AI Demand

Applied Digital Corporation (Nasdaq: APLD) reported fiscal fourth-quarter and full-year 2026 results on July 27, showing a large revenue surge driven by rising AI infrastructure demand and tenant fit-out services. The company flagged ongoing capital financing for its multi-campus "AI Factory" build-out amid continued GAAP losses.

Quarter Results and Profitability

Applied Digital, a designer, developer, owner, and operator of large-scale data centers for high-performance computing (HPC) and AI workloads, posted GAAP total revenue of $258.7 million for fiscal Q4 2026, up 407% year-over-year. Services revenue reached $208.2 million, primarily from $152.4 million in tenant fit-out services. Management attributed the surge to strong demand for high-power-density AI data centers and increased tenant activity shifting revenue toward installation and hosting.

The company recorded a GAAP net loss attributable to common stockholders of $110.6 million, with a net loss per basic and diluted share of $0.39. On a non-GAAP basis, adjusted earnings per share were $0.04, surpassing analyst expectations that had forecast roughly $95 million in revenue and an adjusted loss near $0.20 per share. Adjusted net income for the quarter was $12.9 million.

For the full fiscal year ended May 31, 2026, Applied Digital reported GAAP revenue of $611.3 million, a 167% increase year-over-year, and a GAAP net loss of about $249.2 million. Non-GAAP adjusted net income swung positive to $36.1 million, or $0.11 per diluted share, compared with an adjusted net loss in the prior year.

Polaris Forge Ramp and Financing

On July 1, Applied Digital announced that Phase 1 of Building 2 at its Polaris Forge 1 campus reached Ready for Service, adding 75 megawatts (MW) of operational AI capacity and bringing total live capacity at Polaris Forge 1 to 175 MW. The Q4 release linked this capacity ramp and new long-term leases with an investment-grade hyperscaler to the quarter’s sales growth.

The company also noted secured financing to support additional campuses in its multi-campus AI Factory build-out. This reflects a capital-intensive model where rapid capacity additions and tenant fit-out work drive top-line growth and positive adjusted results, even as GAAP losses remain substantial and expansion requires ongoing financing. Management positioned the business to meet rising demand for purpose-built AI data-center infrastructure while advancing campus development backed by committed funding.