Applied Digital Q1 revenue more than quadruples as tenant fit-out services increase
Reuters2026/10/07 20:42Overview U.S. data center operator's fiscal Q1 revenue grew 322% yr/yr to $341.9 mln Adjusted net loss for fiscal Q1 narrowed to $4.1 mln, adjusted loss per share at $0.01 Subsequent to quarter, company expanded operational capacity and secured new power agreements Outlook Company expects delivered critical IT load across North Dakota campuses to reach 300 MW by end-2026 Applied Digital sees long-term growth potential from Finland power agreement but near-term focus remains on U.S. portfolio Company believes power availability in Dakotas supports future AI factory expansion and attracts additional hyperscaler customers Result Drivers TENANT FIT-OUT SERVICES - Co said revenue growth was mainly driven by increased tenant fit-out services in its HPC Hosting Business HPC HOSTING RENTALS - Co commenced rental operations in its HPC Hosting Business, contributing $79.1 mln in data center rental and other revenue STABLE DATA CENTER HOSTING - Co said revenue from Data Center Hosting Business was materially consistent yr/yr due to stable operating conditions Company press release: ID:nGNX1htrzX Key Details Metric Beat/Miss Actual Consensus Estimate Q1 Revenue $341.90 mln Q1 Adjusted Loss Per Share $0.01 Q1 Adjusted Net Loss $4.10 mln Q1 Net loss Attributable to Common Stockholders $237.08 mln Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell" The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy" Wall Street's median 12-month price target for Applied Digital Corporation is $70.00, about 176.2% above its October 6 closing price of $25.34 Reuters Recommended Reads Oct 5 - Data centre operator DayOne reveals revenue surge in US IPO filing Oct 5 - Conservation group calls for moratorium on AI data centers on US public lands Oct 6 - Black Hills plans $1.8 billion investment to power Google's data center For questions concerning the data in this report, contact Es
Overview
U.S. data center operator's fiscal Q1 revenue grew 322% yr/yr to $341.9 mln
Adjusted net loss for fiscal Q1 narrowed to $4.1 mln, adjusted loss per share at $0.01
Subsequent to quarter, company expanded operational capacity and secured new power agreements
Outlook
Company expects delivered critical IT load across North Dakota campuses to reach 300 MW by end-2026
Applied Digital sees long-term growth potential from Finland power agreement but near-term focus remains on U.S. portfolio
Company believes power availability in Dakotas supports future AI factory expansion and attracts additional hyperscaler customers
Result Drivers
TENANT FIT-OUT SERVICES - Co said revenue growth was mainly driven by increased tenant fit-out services in its HPC Hosting Business
HPC HOSTING RENTALS - Co commenced rental operations in its HPC Hosting Business, contributing $79.1 mln in data center rental and other revenue
STABLE DATA CENTER HOSTING - Co said revenue from Data Center Hosting Business was materially consistent yr/yr due to stable operating conditions
Company press release: ID:nGNX1htrzX
Key Details
Metric |
Beat/Miss |
Actual |
Consensus Estimate |
Q1 Revenue |
|
$341.90 mln |
|
Q1 Adjusted Loss Per Share |
|
$0.01 |
|
Q1 Adjusted Net Loss |
|
$4.10 mln |
|
Q1 Net loss Attributable to Common Stockholders |
|
$237.08 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the blockchain & cryptocurrency peer group is "buy"
Wall Street's median 12-month price target for Applied Digital Corporation is $70.00, about 176.2% above its October 6 closing price of $25.34
Reuters Recommended Reads
Oct 5 - Data centre operator DayOne reveals revenue surge in US IPO filing
Oct 5 - Conservation group calls for moratorium on AI data centers on US public lands
Oct 6 - Black Hills plans $1.8 billion investment to power Google's data center
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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