Applied Digital Q4 Revenue Surges 407% to $258.7M, Swings to Adjusted Profit; $36B Lease Backlog Secured
APLD has more than doubled off its 52-week low of $9.79.
Summary
Applied Digital reported Q4 FY2026 revenue of $258.7M (up 407% YoY), beating estimates by 173%, and swung to an adjusted profit of $12.9M. The company has secured $36B in contracted lease revenue across 1.4 GW of AI data center capacity, with three new hyperscaler leases signed since last quarter.
Key Events · Earnings and Guidance · APLD
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Q4 Revenue Surges 407% to $258.7M
Revenue of $258.7 million beat estimates by 173%, driven by HPC hosting tenant fit-out services ($152.4M) and base rent ($44.1M). Adjusted net income reached $12.9 million ($0.04 per diluted share) versus a $7.6 million loss a year ago.
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Full-Year Revenue Hits $611.3M, Adjusted EBITDA $107.2M
FY2026 revenue grew 167% to $611.3 million. Adjusted EBITDA of $107.2 million compares to $19.6 million in FY2025, reflecting the ramp of HPC hosting operations.
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$36B Contracted Lease Backlog Across 1.4 GW
Three new 15-year take-or-pay leases with a high investment-grade hyperscaler—Delta Forge 1 (300 MW, ~$7.5B), Polaris Forge 3 (300 MW, ~$7.5B), and Delta Forge 2 (210 MW, ~$5.2B)—bring total contracted revenue to ~$36 billion over base terms.
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Balance Sheet: $4.2B Cash, $5.0B Debt
As of May 31, 2026, cash and restricted cash totaled $4.2 billion, with $5.0 billion in debt. Post-quarter, the company closed $1.59 billion in senior secured notes and upsized its revolving credit facility to $430 million committed.
Analysis · APLD · Technology
A blowout quarter reshapes the narrative: revenue soared 407% year-over-year to $258.7 million, beating estimates by 173%, while the company swung to an adjusted profit of $12.9 million from a loss a year ago. With 1.4 gigawatts of contracted critical IT load now secured across five AI factory campuses, the base-term contracted lease revenue stands at approximately $36 billion—backed by three new 15-year hyperscaler leases signed since last quarter. The balance sheet carries $4.2 billion in cash and restricted cash against $5.0 billion in debt, underscoring an aggressive but fully funded expansion. This report transforms the investment thesis: Applied Digital is no longer a pre-revenue development story but a rapidly scaling operator with visible, long-term contracted cash flows from investment-grade customers.
At the time of this filing, APLD was trading at $27.85 on NASDAQ in the Technology sector, with a market capitalization of approximately $7.5B. 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.