Applied Digital FY2026 Revenue Surges 167% to $611M; $36.2B Lease Backlog Secured
APLD has more than doubled off its 52-week low of $9.79.
Summary
Applied Digital's FY2026 10-K reveals a transformational year: revenue jumped 167% to $611M as its first HPC data center went live, and it now holds $36.2B in contracted lease backlog. The company is well-capitalized with $4.15B in cash to fund expansion, and internal controls are now clean.
Key Events · Earnings and Guidance · APLD
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Revenue Surges 167% to $611M
Total revenue reached $611.3 million in FY2026, up from $228.6 million in FY2025, driven by the commencement of HPC hosting operations which contributed $385.3 million.
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$36.2B Contracted Lease Backlog
As of May 31, 2026, the company had executed long-term leases for 1,410 MW of critical IT load across five campuses, representing approximately $36.2 billion in total contracted revenue over 15-year base terms.
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Strong Liquidity Position
Cash and restricted cash totaled $4.15 billion as of May 31, 2026, providing ample funding for ongoing construction and operations. Total debt stood at $5.3 billion.
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Internal Control Weakness Remediated
The previously reported material weakness in accounting for complex financial instruments was fully remediated as of August 31, 2025. The auditor issued an unqualified opinion on internal controls.
Analysis · APLD · Technology
The launch of Applied Digital's first HPC data center propelled revenue up 167% to $611 million and swung the core business to an adjusted profit. With 1.4 GW of capacity now under long-term lease to investment-grade hyperscalers, the company has locked in $36.2 billion in contracted revenue, dramatically improving backlog and long-term earnings visibility. While the GAAP net loss reflects heavy non-cash stock compensation and construction-related costs, underlying operating momentum is strong. The balance sheet carries $4.15 billion in cash and restricted cash against $5.3 billion in debt, funding an aggressive buildout. Remediation of a prior material weakness and a clean audit opinion remove a key overhang.
At the time of this filing, APLD was trading at $22.74 on NASDAQ in the Technology sector, with a market capitalization of approximately $6.6B. The 52-week trading range was $9.79 to $50.73. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.