APLD

IREN Limited IREN is set to report its fourth-quarter fiscal 2026 results on Aug. 27. The Zacks Consensus Estimate for IREN’s fiscal fourth-quarter revenues is currently pegged at $138.89 million, indicating a 25.84% year-over-year decline.The consensus mark for the bottom line is currently pegged at a loss of 42 cents, unchanged over the past 30 days. This indicates a sharp year-over-year deterioration from earnings of 8 cents. Image Source: Zacks Investment Research Over the last four quarters, the company has struggled to surpass expectations, missing the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 205.90%. IREN Limited price-eps-surprise | IREN Limited Quote Our proven model predicts an earnings beat for IREN this time around. Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.IREN Limited has an Earnings ESP of +7.14% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. IREN Limited’s fiscal fourth-quarter results are likely to underline how quickly its revenue mix is changing. AI Cloud Services entered the June quarter with momentum after revenues almost doubled sequentially to $33.6 million in the fiscal third quarter. With Prince George GPUs already operating or undergoing commissioning and operational capacity fully contracted, AI cloud revenues are expected to have increased further in the fiscal fourth quarter.However, management’s guidance suggests investors should not expect the larger AI ramp-up to have materially affected the fiscal fourth quarter. IREN said Microsoft revenues and revenues from an additional 50,000 GPUs would be back-end weighted and begin ramping up in the third calendar quarter of 2026, which falls after the June fiscal year-end.Bitcoin mining is likely to have remained a significant headwind. Fiscal third-quarter mining revenues dropped to $111.2 million from $167.4 million sequentially as IREN continued decommissioning miners ahead of GPU installations. With that process continuing, another sequential decline in mining revenues is likely to have partly offset growth from AI cloud services in the fiscal fourth quarter.Reported profitability may have faced additional pressure from impairments. IREN booked $140.4 million of noncash impairments in the fiscal third quarter, primarily related to decommissioned mining hardware, and management specifically guided for additional charges as the remaining mining operations transitioned toward AI cloud. This could have weighed on fourth-quarter and full-year fiscal 2026 earnings.Funding, however, strengthened considerably during the fiscal fourth quarter. IREN finalized approximately $3.6 billion of financing to partly fund GPUs and related costs for the Microsoft contract. It also closed a $3 billion convertible-note offering in May, generating about $2.96 billion of net proceeds. While these transactions are not immediate revenue drivers, they reduced financing uncertainty around planned AI deployments. IREN also raised its expected annualized run-rate revenues (ARR) to $4.4 billion during the quarter following its planned Blackwell deployment for the NVIDIA contract, up from the $3.7 billion target outlined with its fiscal third-quarter results. However, with commissioning targeted for early 2027, this development is not expected to have contributed to fiscal fourth-quarter revenues. IREN shares have returned 11.8% in the year-to-date period, outperforming the broader Zacks Financial - Miscellaneous Services industry’s decline of 6.2%.Compared with its peers, IREN has underperformed Applied Digital APLD and TeraWulf WULF. Year to date, shares of Applied Digital and TeraWulf have gained 17.7% and 42%, respectively. Image Source: Zacks Investment Research IREN stock is not cheap, as the Value Score of D suggests a stretched valuation at this moment. In terms of forward 12-month price/sales, IREN is trading at 4.23X, higher than the Zacks Financial - Miscellaneous Services industry’s 2.59X. Image Source: Zacks Investment Research Compared with its peers, IREN Limited has a lower P/S multiple than Applied Digital and TeraWulf. At present, Applied Digital and TeraWulf trade at forward 12-month Price/Sales ratios of 8.01 and 12.26, respectively. IREN’s fiscal 2026 results are likely to show a company between two business models. AI cloud revenues are growing quickly, demand remains strong, and completed financing provides greater confidence that planned GPU deployments can be funded. However, the largest revenue ramp-up was guided to begin after fiscal year-end, while declining Bitcoin mining activity and further impairment charges are likely to pressure near-term results.IREN also raised its targeted ARR to $4.4 billion in May after agreeing to purchase Blackwell systems for its NVIDIA contract, although commissioning is targeted for early 2027 and should not influence fiscal fourth-quarter revenues. Execution risk, heavy capital requirements and competition remain important considerations. Given the improving AI setup but limited near-term earnings conversion, maintaining existing positions appears appropriate for now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IREN Limited (IREN) : Free Stock Analysis Report Applied Digital Corporation (APLD) : Free Stock Analysis Report TeraWulf Inc. (WULF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Applied Digital Corporation (APLD). Shares have added about 8.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Applied Digital Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Applied Digital reported a loss of 39 cents per share in the fourth quarter of fiscal 2026, a deterioration from a loss of 24 cents registered in the year-ago quarter. The figure was wider than the Zacks Consensus Estimate of a loss of 18 cents by 116.67%.Revenues surged 407% year over year to $258.7 million, driven by the ramp-up of HPC tenant fit-out services at Polaris Forge 1 and continued strength in the Data Center Hosting Business. The figure beat the Zacks Consensus Estimate of $240 million by 7.79%. APLD's Segment Performance The Data Center Hosting Business generated $37.3 million in revenues, materially consistent year over year with stable operating conditions, as both Jamestown (106 MW) and Ellendale (180 MW) operated at full capacity as of May 31. The segment generated $12.5 million in operating profit during the quarter, on a reported asset base of $113.8 million, and continues to be the company's highest return on asset business.The HPC Hosting Business contributed $203 million in revenues during the quarter. This included $152.4 million from tenant fit-out services, $44.1 million related to base rent and $6.5 million related to tenant recoveries. The segment generated an operating profit of $26.2 million. The business now spans five contracted campuses totaling roughly 1.4 gigawatts of critical IT load, following three new leases signed with a single high-investment-grade hyperscaler since the prior quarter.During the quarter, the company completed the separation of its Cloud Services Business, combining it with Ekso Bionics Holdings to form ChronoScale Holdings Corporation. Applied Digital retained approximately 96% ownership. Reflecting this, the company consolidated ChronoScale revenues of $18.4 million for the quarter. The segment is excluded from the company's non-GAAP results going forward as management evaluates the Data Center Hosting and HPC Hosting businesses as its core operations. APLD's Operating Details Services cost of revenues jumped 256% year over year to $193.1 million, primarily reflecting $145.6 million associated with tenant fit-out services for the HPC Hosting Business. Data center rental and other cost of revenues came in at $25.1 million, primarily comprising depreciation and amortization on the first HPC data center at Polaris Forge 1, along with reimbursable tenant recovery expenses.Selling, general and administrative expenses surged 303% year over year to $165.3 million. The increase was driven by $116.8 million in stock-based compensation tied to accelerated vesting of employee stock awards and grant activity related to the ChronoScale separation, as well as $7.3 million in personnel expenses tied to headcount growth and $5.6 million in professional services expense.Interest expense net rose 26% year over year to $10.6 million, as a $31.9 million increase in interest expense from new debt arrangements was partially offset by a $30.5 million increase in interest income from higher balances held in interest-bearing demand deposit accounts.The company recognized a $53.3 million gain on the change in fair value of derivatives, comprising a $69.9 million increase in the value of its Babcock & Wilcox common stock warrant partially offset by a $16.7 million decrease in the fair value of derivative assets tied to preferred units. It also recorded a $4.8 million gain on the change in fair value of investments, reflecting the appreciation of its B&W common stock position. Neither gain was present in the year-ago quarter. APLD's Balance Sheet and Cash Flows As of May 31, Applied Digital held cash, cash equivalents and restricted cash of approximately $4.2 billion compared with $2.1 billion as of Feb. 28. Total debt stood at approximately $5 billion compared with $2.7 billion at the end of the third quarter of fiscal 2026, reflecting the closing of $2.15 billion of senior secured notes tied to Polaris Forge 2, along with a new revolving credit facility.Operating cash flow was positive $89.7 million for the fiscal year ended May 31, 2026, a marked improvement from cash used in operations of $115.4 million in the prior fiscal year, aided by a strong step-up in collections during the fourth quarter. APLD Offers Positive Outlook Applied Digital ended the fiscal year with roughly 1.4 gigawatts of contracted critical IT load across five AI Factory campuses, representing approximately $36 billion in total contracted lease revenue, or approximately $86 billion including renewal options. It is actively marketing another 1.7 gigawatts across multiple states, citing robust demand and rising lease rates.Management is in advanced talks to expand capacity by 100 MW and 150 MW with two existing investment-grade customers, which would lift total capacity to 1.66 gigawatts and add over $6 billion in contracted revenue at current rates. The company is also working with Base Electron to develop roughly 1.2 gigawatts of natural gas fired generation in the Dakotas to support further expansion.Applied Digital now expects to hit its $1 billion annual net operating income target roughly three years ahead of schedule, with quarterly capex guided at approximately $600 million as construction continues across its campuses. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -27.5% due to these changes. Currently, Applied Digital Corporation has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Applied Digital Corporation has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Applied Digital Corporation is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Blackstone Inc. (BX), a stock from the same industry, has gained 7.1%. The company reported its results for the quarter ended June 2026 more than a month ago. Blackstone Inc. reported revenues of $3.8 billion in the last reported quarter, representing a year-over-year change of +23.7%. EPS of $1.52 for the same period compares with $1.21 a year ago. Blackstone Inc. is expected to post earnings of $1.36 per share for the current quarter, representing a year-over-year change of -10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -4%. Blackstone Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Digital Corporation (APLD) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

IREN Limited’s IREN will now report fiscal 2026 results on Aug. 27, after market close, giving investors a view of how quickly its business is shifting from Bitcoin mining toward AI cloud. The March-end quarter showed that transition clearly: revenues fell to $144.8 million, while AI cloud revenue nearly doubled sequentially to $33.6 million.The biggest number to watch is AI cloud growth. IREN raised its year-end 2026 annualized run-rate revenue target from $3.7 billion to more than $4 billion after signing $2.8 billion of new multi-year contracts. About 85% of that target is already contracted, making deployment and customer acceptance important.Execution at Childress will matter just as much as bookings. Horizon 1, the first of four 50MW liquid-cooled deployments for Microsoft, has been delivered and accepted under a five-year, $9.7 billion cloud services contract. Investors should watch the timing of Horizons 2-4 and progress toward 480MW of 2026 AI cloud capacity.The earnings mix is another key issue. In the March-end quarter, Bitcoin mining revenue dropped to $111.2 million from $167.4 million in the prior quarter as mining hardware was decommissioned, while adjusted EBITDA fell to $59.5 million. The upcoming earnings report should show whether faster AI revenue is starting to offset that decline.Funding remains central to the expansion plan. IREN reported about $7.6 billion of cash and cash equivalents as of June 30, including $1.7 billion of restricted cash tied to Microsoft GPU financing. Recent customer prepayments covered roughly 45% of associated GPU capital expenditure, which could reduce the company’s net funding needs. Applied Digital Corporation APLD offers investors another useful AI-infrastructure read-through. Applied Digital posted fiscal fourth-quarter revenues of $258.7 million, up 407% year over year, while adjusted EBITDA reached $42.4 million. Applied Digital also signed a 15-year, 300MW hyperscaler lease worth about $7.5 billion, keeping new-capacity delivery and financing firmly in focus ahead. Cipher Digital Inc. CIFR is making a similar shift from Bitcoin mining toward high-performance computing. Cipher Digital posted second-quarter 2026 revenues of $25 million and adjusted EBITDA of negative $30 million. Cipher Digital also began Black Pearl rent in August, two months early, making data-center delivery, HPC leasing, and project financing investor watchpoints. Shares of IREN have declined 25% over the past three months, underperforming the broader industry and the S&P 500 composite. Image Source: Zacks Investment Research In terms of forward 12-month Price/Sales (P/S), IREN is currently trading at 4.32X, which is at a premium to the industry average of 2.58X. Image Source: Zacks Investment Research Estimates for IREN’s 2026 and 2027 earnings have been revised downward in the past 30 days. However, the company is expected to report a profit next year. Image Source: Zacks Investment Research Currently, IREN carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IREN Limited (IREN) : Free Stock Analysis Report Applied Digital Corporation (APLD) : Free Stock Analysis Report Cipher Digital Inc. (CIFR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Nebius will report Q2 results on Wednesday and analysts expect its revenue to surge 466% to $574.6 million. Neocloud stocks rose overnight late Tuesday after CoreWeave’s report; CRWV gained nearly 15%. Stocktwits sentiment for NBIS shifted to ‘extremely bullish’ from ‘bullish.’ Nebius and other neocloud stocks surged Tuesday evening after industry leader CoreWeave posted another record quarter, underscoring robust cloud demand and continued spending on new capacity. NBIS stock rose 7% in overnight trading, with investors positioning ahead of the company’s second-quarter report due before market hours on Wednesday. Shares of IREN Ltd and Applied Digital gained 5% and 3% respectively, while those of CoreWeave were up by 14.6%. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox CoreWeave’s revenue more than doubled year over year last quarter and the company raised its full-year target in another clear signal for strong cloud demand. Hyperscalers, too, reported strong cloud growth in the second quarter, with Google Cloud sales surging a record 82%. The momentum appears to be trickling down to smaller players. Analysts expect Nebius’s revenue to grow 446% to $574.6 million and adjusted loss to nearly double to $0.70 per share, according to estimates from Koyfin. Currently, 11 out of 18 analysts have a ‘Buy’ or higher rating on NBIS, while six rate it ‘Hold,’ and one rates it ‘Strong Sell,’ per Koyfin. Their average price target of $250.75 implies a 30% upside from the stock’s closing price on Tuesday. Nebius is part of a group of emerging cloud providers that have attracted investor interest of late. The Amsterdam, Netherlands-headquartered company emerged in 2024 after Russia’s Yandex spun off its international assets following the Russia-Ukraine war, refocusing the business entirely on AI infrastructure. Nebius has been on an expansion spree since it bagged a major contract from Microsoft last September. The company recently acquired startups Eigen AI and Tavily. In March, Nebius announced a $27 billion contract win with Meta Platforms and a $2 billion investment from Nvidia. Nebius stock has gained 176% in the last 12 months. NBIS was among the top 10 trending tickers on Stocktwits at the time of writing, with the retail sentiment for the stock climbing to ‘extremely bullish’ from ‘bullish.’ “$NBIS New highs after earnings,“ a trade wrote. Some traders also expressed discontentment with Michael Burry and said his latest short position on NBIS was misplaced. “$NBIS Not a good time to be a Burry Lemming,” one said. CoreWeave’s second-quarter revenue increased 112% to $2.58 billion, surpassing analysts’ estimates of $2.56 billion. Adjusted loss per share of $1.03 was below the $1.20 per share target. The company’s sales backlog – or future sales from recurring customers – reached $104 billion, nearly doubling the order book it reported in November. Subsequently, CoreWeave raised its full-year 2026 guidance. The company expects revenue between $12.4 billion and $13.2 billion, up from its May projection of $12 billion to $13 billion. It also raised its full year capital expenditure target to a range of $35 billion to $39 billion, compared to its previous expectation of $31 billion to $35 billion. For updates and corrections, email newsroom[at]stocktwits[dot]com. Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: Why Did ABNB, TGT, ZETA Stocks Surge To 52-Week Highs Today? SpaceX Supplier VELO Stock Jumps 16% Overnight: CEO Says Company Is Entering 'Important Phase Of Growth' HIMS Stock Snaps 2-Day Climb: Analyst Says Record Subscriber Growth ‘Not Enough’ To Offset Margin Slide

Applied Digital Corporation (APLD) just put up a strong set of numbers this earnings season. In its fiscal fourth quarter of 2026, the Dallas-based data center company reported $258.7 million in revenue, far ahead of Wall Street estimates of about $94.8 million to $104.3 million. It also posted adjusted earnings of $0.04 per share, beating expectations for a loss of roughly $0.19 to $0.22. The stock reacted quickly, with shares of Applied Digital rising about 4% in premarket trading. Investors are still leaning into the company’s growing AI data center business, especially as demand for AI infrastructure keeps climbing. Hyperscalers are expected to spend over $600 billion this year alone, even with ongoing challenges around power and funding. Dear Sandisk Stock Fans, Mark Your Calendars for August 5 Intel Stock Sinks 40%, But Most Analysts Still Aren’t Bullish on INTC Nebius Stock Gets Another Wall Street Upgrade. Here’s Why Investors Are Paying Attention. Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! With Applied Digital delivering a big revenue beat and showing early signs of profitability, is there more upside ahead? Applied Digital builds and runs data centers designed for AI and high-performance computing, then leases that capacity to large customers. The stock has had a strong run, up 175.4% over the past year, and it is up 12.64% so far in 2026. In the fiscal fourth quarter, revenue jumped to $258.7 million, up 407% from a year ago, showing the rapid speed in which demand is growing. The company still posted a net loss of $110.6 million, but that loss narrowed, and the underlying numbers are starting to look better. Adjusted revenue came in at $240.4 million, with adjusted net income of $12.9 million and adjusted EBITDA of $42.4 million. Net operating income was $39.9 million, pointing to better efficiency as more capacity comes online. For the full fiscal year 2026, revenue reached $611.3 million, up 167% year-over-year (YOY). Adjusted EBITDA rose to $107.2 million, while adjusted net income came in at $36.1 million, showing steady progress as the business scales. Applied Digital signed a power agreement with Montana-Dakota Utilities Company, a subsidiary of MDU Resources Group (MDU) , to support its Polaris Forge 3 AI data center in North Dakota. The site is expected to use up to 430 megawatts at full capacity. Applied Digital will handle sourcing the power, giving it more control as it scales. The project is set to begin operations in August 2027 and builds on its existing presence in the state, where Polaris Forge 1 is already running. Also, the company locked in a 210 MW long-term lease at its Delta Forge 2 site with a United States-based investment-grade hyperscaler. The deal runs for 15 years and is structured as take-or-pay, bringing in about $5.2 billion in base revenue, with the potential to reach $12.7 billion if extended. This pushes its total contracted capacity to 1.4 GW and about $36 billion in base-term revenue, with roughly 70% tied to investment-grade customers. At Delta Forge 1, Applied Digital added another hyperscaler tenant under a 15-year lease covering 300 MW, worth around $7.5 billion. This takes total contracted revenue to over $23 billion and increases the share backed by investment-grade clients to more than 50%, while also expanding its customer mix. Applied Digital is set to report its next earnings on October 8. For the current quarter (August 2026), analysts expect a loss of $0.20 per share, compared to $0.11 a year ago, an 81.82% drop. For fiscal 2027, estimates point to a loss of $1.10 versus $0.91 previously, a 20.88% decline. Needham kept its “Buy” rating and held a Street-high $83 price target, with analyst John Todaro pointing to an extra 150 megawatts of near-term expansion at the Delta Forge site as a reason to raise estimates. H.C. Wainwright also maintained a “Buy” rating, though with a lower $40 target, noting strong revenue growth even as profits are still developing. Overall, sentiment is clearly bullish. All 13 analysts covering Applied Digital Corporation rate it a consensus “Strong Buy”, with an average price target of $72.54. From current levels, that suggests about 160.1% upside. Applied Digital’s latest results and expanding backlog make a strong case that the story still has room to run, but it is not without execution risk. The combination of explosive revenue growth, long-term hyperscaler contracts, and clear analyst backing suggests the rally is supported by fundamentals rather than just hype. Nevertheless, near-term losses and the capital-heavy buildout mean volatility is likely to stick around. From here, the path of least resistance still looks higher as more capacity comes online and contracts convert into revenue, but pullbacks along the way would not be surprising. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

This article first appeared on GuruFocus. Total Revenue: $258.7 million, a 407% increase from the prior quarter. Services Revenue: $208.2 million. Data Center Rental and Other Revenue: $50.6 million. HPC Hosting Revenue: $203 million, including $152.4 million from tenant fit-out services, $44.1 million from base rent, and $6.5 million from tenant recoveries. Data Center Hosting Revenue: $37.3 million, consistent year over year. ChronoScale Revenue: $18.8 million. SG&A Expense: $165.3 million, driven by $116.8 million in stock-based compensation. Net Loss: $111.6 million or $0.39 per share. Adjusted Net Income: $12.9 million or $0.04 per diluted share. Adjusted EBITDA: $42.4 million, up from $1 million in the prior quarter. Net Operating Income (NOI): $39.9 million, representing a 91% margin. Cash Position: $4.2 billion. Debt: $5 billion. Equity: Approximately $1.7 billion. Warning! GuruFocus has detected 7 Warning Signs with APLD. Is APLD fairly valued? Test your thesis with our free DCF calculator. Release Date: July 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Applied Digital Corp (NASDAQ:APLD) signed leases for five campuses, creating $36 billion in total contracted long-term lease value, with $20 billion of that in the last quarter. The company delivered 100 megawatts of Polaris Forge 1 on time and on budget, showcasing strong execution capabilities. Applied Digital Corp (NASDAQ:APLD) is constructing five multibillion-dollar AI factory campuses for three separate hyperscalers, highlighting its industry leadership. The company achieved a 407% increase in total revenues from the comparative prior quarter, demonstrating significant financial growth. Applied Digital Corp (NASDAQ:APLD) has secured financing needs for its projects, including a $2.15 billion senior secured notes and a $300 million senior secured bridge facility, ensuring financial stability for future expansions. The company reported a net loss attributable to common shareholders of $111.6 million, indicating financial challenges despite revenue growth. Stock-based compensation increased significantly, contributing to a rise in SG&A expenses by $124.3 million this quarter. Applied Digital Corp (NASDAQ:APLD) faces potential constraints in power availability and supply chain limitations, which could impact future growth. The company's operations are heavily reliant on a few high investment-grade hyperscalers, which may pose a risk if these relationships change. Despite strong revenue growth, the company's adjusted net income was only $12.9 million, suggesting that profitability remains a challenge. Q: Can you talk about Applied's strategy in signing the three recent leases for 810 megawatts and the lower yields compared to peers? A: Wesley Cummins, CEO: Our strategy was to establish a solid foundation by securing leases with investment-grade hyperscalers. We achieved over 70% of our contracted lease revenue with such customers. Our pricing discussions have been ongoing, and we expect higher prices to reflect in future contracts. We aim for conservative cost expectations to ensure we meet or exceed them, and our lease return rates are competitive within the industry. Q: Can you discuss your strategy around managing cost of capital on both the debt and equity sides? A: Saidal Mohmand, CFO: We focus on contracting directly with high investment-grade hyperscalers, which helps lower our cost of capital. Our financing model includes a low-cost revolver, equity funding from Macquarie, and site-specific debt. This approach allows us to maintain a conservative leverage level and manage financing efficiently. Q: What is the expected cadence of CapEx spend for the rest of the calendar year? A: Saidal Mohmand, CFO: We expect CapEx to be around $600 million for the upcoming quarter, increasing as construction progresses at new campuses. We've secured financing for these sites earlier in the construction process compared to previous projects. Q: Can you provide more details on the two customers looking to expand by 100 and 150 megawatts? A: Wesley Cummins, CEO: We are negotiating expansions at Polaris Forge 2 and one of our Delta Forge campuses. We expect higher pricing for these expansions and future capacity, reflecting strong demand in the industry. Q: How does Base Electron's power capacity impact your expansion plans in North Dakota? A: Wesley Cummins, CEO: Base Electron's 1.2 gigawatts of power generation in North Dakota will support our data center campuses and other regional ratepayers. This capacity, along with other regional projects, will enable us to expand our campuses significantly, with a clear line of sight to over 5 gigawatts of critical IT load capacity. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Applied Digital Corporation APLD used its fiscal fourth-quarter 2026 earnings call to emphasize contracted scale, financing progress and execution across its expanding AI data center portfolio. Management’s message centered on converting a large development pipeline into operating capacity while securing power, controlling construction costs and lowering the capital required to fund growth. Chairman and CEO Wes Cummins said Applied Digital now has 1.41 gigawatts of contracted critical IT load across five campuses, supporting approximately $36 billion of base-term lease revenues. Three recent leases with the same high investment-grade hyperscaler cover 810 megawatts and approximately $20 billion of contracted revenues. Cummins described the concentration as part of a deliberate shift toward durable agreements with financially stronger customers. Management is also marketing another 1.7 gigawatts across multiple states. Expansion options under negotiation with two existing customers could add 250 megawatts and more than $6 billion of contracted revenue based on current rates and lease durations. Cummins said rental rates have increased during the past six months, creating room for better economics on new campuses and customer expansions. A Lake Street Capital Markets analyst asked about the proposed 100-megawatt and 150-megawatt expansions. Cummins said both would involve existing customers and should carry materially higher pricing than their current agreements. During a Northland Securities exchange about development yields, Cummins defended the recent leases as competitive for their scale, duration and customer quality. He added that management uses conservative cost and margin assumptions when evaluating project returns. CFO Saidal Mohmand highlighted financing as a central part of the company’s development model. Applied Digital secured funding for all 400 megawatts at Polaris Forge 1 and 200 megawatts at Polaris Forge 2. The company issued $2.15 billion of 6.75% senior secured notes and $1.59 billion of 7% senior secured notes. Mohmand said the latter financing priced 225 basis points below the company’s first project bond placement. Mohmand described a three-part funding structure combining Applied Digital’s balance sheet, Macquarie’s contribution of three-quarters of required project equity and site-specific debt. Management expects investment-grade tenant agreements to support more favorable financing for its next three campuses. Cummins identified power availability and supply-chain capacity as the main limits on growth rather than customer demand. The company is working with Base Electron on approximately 1.2 gigawatts of natural gas-fired generation in the Dakotas. Management views added generation and regional transmission projects as essential to expanding existing campuses beyond their initial capacity. Cummins also said the company had previously secured supply-chain capacity for roughly 700 megawatts of annual critical IT load. Applied Digital is now building beyond that level, placing greater importance on equipment availability, construction sequencing and labor planning. Fiscal fourth-quarter adjusted revenues were $240.4 million, which beat the Zacks Consensus Estimate of $99.3 million. It incurred a loss of 39 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 18 cents. Applied Digital Corporation price-consensus-eps-surprise-chart | Applied Digital Corporation Quote HPC hosting generated $203 million of revenues, including $152.4 million from tenant fit-out services and $44.1 million from base rent. Adjusted EBITDA reached $42.4 million, and net operating income was $39.9 million. Mohmand stressed that quarterly HPC results primarily reflected the first 100 megawatts operating at Polaris Forge 1. The company subsequently brought another 75 megawatts online, taking live capacity at the campus to 175 megawatts. Management maintained a confident tone on demand but repeatedly returned to construction discipline. Cummins said all current projects were on time and on budget, while noting that power and supply-chain management remain critical. Applied Digital now expects to reach a $1 billion annual net operating income run rate within one year, three years earlier than its original target. The company’s priorities remain delivering contracted capacity, financing projects efficiently and expanding existing campuses. APLD currently carries a Zacks Rank #3 (Hold). That ranking indicates a neutral near-term earnings revision outlook rather than a clear signal of outperformance or underperformance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value, Growth, Momentum and VGM Score of F each, indicating weak characteristics across all four measures. Style Scores work best alongside the Zacks Rank, with A or B grades viewed more favorably. The Zacks Rank can change as analyst estimates are revised following the newly reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Digital Corporation (APLD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

B. Riley Securities reiterated its Buy rating and $66 price target for Applied Digital (NASDAQ: APLD) after the AI infrastructure developer reported fiscal fourth-quarter adjusted EBITDA of $42.4 million. The result exceeded B. Riley’s $24.6 million estimate and the $25.6 million consensus forecast. Applied Digital reported $258.7 million in revenue for the quarter ended May 31, including $152.4 million from tenant fit-out services. B. Riley said those fit-out payments helped drive the EBITDA beat, while HPC base rent of $44.1 million matched its estimate. B. Riley based its assessment on an improving construction record and expectations that future capacity will command higher lease rates. Applied Digital delivered the first phase of Building 2 at Polaris Forge 1 on June 30, adding 75 MW on schedule and increasing live capacity at the campus to 175 MW. B. Riley described the delivery as evidence that Applied Digital can execute its larger development pipeline. Building 2 took 12 months to complete, compared with 24 months for the first building, a reduction management attributed to better construction sequencing. Applied Digital is negotiating leases covering 100 MW of uncontracted capacity at Polaris Forge 2 and 150 MW of expansion capacity across Delta Forge 1 and Delta Forge 2. B. Riley expects the potential agreements to carry higher rates than the existing leases, though all 250 MW remains under negotiation. The company has about 1.4 GW of contracted IT load across five campuses, supporting approximately $36 billion of base-term revenue, according to the bank. U.S.-based investment-grade hyperscalers back more than 70% of contracted revenue, a setup B. Riley sees as supportive of financing terms and durable lease cash flows. Borrowing costs have already declined. Applied Digital priced $2.15 billion of senior secured notes funding 200 MW at Polaris Forge 2 with a 6.750% coupon, below the 9.250% coupon on its legacy notes due in 2030. B. Riley expects financing costs could improve further as campuses enter service and tenant credit supports the projects. Power supply represents another part of the bank’s thesis. Applied Digital owns about 10% of Base Electron, which is developing approximately 1.2 GW of natural-gas generation in the Dakotas with regional utility partners. B. Riley said that generation, alongside existing utility relationships, could allow current campuses to expand beyond their contracted capacity once more power becomes available. B. Riley currently or within the past 12 months provided investment-banking services to Applied Digital and received compensation. The bank also said it expects to seek additional investment-banking business from the company. B. Riley said power availability and supply-chain constraints will govern the pace of growth. The projects require substantial capital and remain exposed to construction delays or cost overruns. The bank also identified weaker-than-forecast AI adoption as a demand risk. Future lease pricing could face pressure, while existing customers may choose not to renew capacity contracts on current terms.

Needham maintained its Buy rating and $83 price target for Applied Digital (NASDAQ: APLD), implying roughly 215% upside from the bank’s $26.38 reference price on July 27. The target reflects Needham’s view that Applied Digital can execute across its expanding AI data-center portfolio. Fiscal fourth-quarter results showed operating progress, while advanced discussions for another 250 MW could extend the company’s contracted capacity if they result in signed leases. Needham bases its $83 target on a 21× enterprise-value-to-EBITDA multiple applied to its discounted fiscal 2029 adjusted-EBITDA estimate. The bank forecasts $2.33 billion of adjusted EBITDA that year, down from its previous $2.37 billion estimate. Applied Digital reported fiscal fourth-quarter revenue of $258.7 million and adjusted EBITDA of $42.4 million. The headline revenue figure was heavily influenced by $152.4 million of low-margin tenant fit-out services, which Needham described as one-time work rather than recurring rental income. Excluding those services, HPC base-rent revenue reached $44.1 million, close to Needham’s $44.3 million estimate. The quarter included the first full contribution from the 100 MW first building at Polaris Forge 1. HPC net operating income carried a 91% margin, exceeding management’s guidance in the mid-80% range. Needham said the result placed Applied Digital’s lease economics closer to those of listed peers, although the bank continues to model an HPC NOI margin near 85%. Construction progress also supported the bank’s thesis. Polaris Forge 1’s second building brought another 75 MW to ready-for-service status in June, lifting live capacity at the campus to 175 MW. Management said its projects remained on time and on budget. Applied Digital is in advanced discussions with two existing counterparties covering 250 MW of critical IT load. The talks include 100 MW at Polaris Forge and 150 MW at Delta Forge. Needham included the Polaris Forge capacity in its fiscal 2028 model. The Delta Forge opportunity was less expected, although the bank previously assumed 200 MW of available capacity at an unidentified site. Formalizing the 150 MW project therefore reduced its modeled operating capacity by 50 MW compared with that earlier assumption. Neither potential lease has been signed. The Delta Forge expansion corresponds to expected 2028 power availability, according to Needham, making customer commitments and infrastructure delivery central to the timing. The $83 target depends on Applied Digital delivering across its development pipeline. Power availability, construction schedules, financing conditions, customer concentration and final lease commitments could change the company’s capacity growth or projected returns. Needham said it received investment-banking compensation from Applied Digital during the past 12 months, managed or co-managed a recent securities offering for the company, and makes a market in APLD shares.

Applied Digital APLD reported a loss of 39 cents per share in the fourth quarter of fiscal 2026, a deterioration from a loss of 24 cents registered in the year-ago quarter. The figure was wider than the Zacks Consensus Estimate of a loss of 18 cents by 116.67%.Revenues surged 407% year over year to $258.7 million, driven by the ramp-up of HPC tenant fit-out services at Polaris Forge 1 and continued strength in the Data Center Hosting Business. The figure beat the Zacks Consensus Estimate of $240 million by 7.79%. Applied Digital Corporation price-consensus-eps-surprise-chart | Applied Digital Corporation Quote The Data Center Hosting Business generated $37.3 million in revenues, materially consistent year over year with stable operating conditions, as both Jamestown (106 MW) and Ellendale (180 MW) operated at full capacity as of May 31. The segment generated $12.5 million in operating profit during the quarter, on a reported asset base of $113.8 million, and continues to be the company's highest return on asset business.The HPC Hosting Business contributed $203 million in revenues during the quarter. This included $152.4 million from tenant fit-out services, $44.1 million related to base rent and $6.5 million related to tenant recoveries. The segment generated an operating profit of $26.2 million. The business now spans five contracted campuses totaling roughly 1.4 gigawatts of critical IT load, following three new leases signed with a single high-investment-grade hyperscaler since the prior quarter.During the quarter, the company completed the separation of its Cloud Services Business, combining it with Ekso Bionics Holdings to form ChronoScale Holdings Corporation. Applied Digital retained approximately 96% ownership. Reflecting this, the company consolidated ChronoScale revenues of $18.4 million for the quarter. The segment is excluded from the company's non-GAAP results going forward as management evaluates the Data Center Hosting and HPC Hosting businesses as its core operations. Services cost of revenues jumped 256% year over year to $193.1 million, primarily reflecting $145.6 million associated with tenant fit-out services for the HPC Hosting Business. Data center rental and other cost of revenues came in at $25.1 million, primarily comprising depreciation and amortization on the first HPC data center at Polaris Forge 1, along with reimbursable tenant recovery expenses.Selling, general and administrative expenses surged 303% year over year to $165.3 million. The increase was driven by $116.8 million in stock-based compensation tied to accelerated vesting of employee stock awards and grant activity related to the ChronoScale separation, as well as $7.3 million in personnel expenses tied to headcount growth and $5.6 million in professional services expense.Interest expense net rose 26% year over year to $10.6 million, as a $31.9 million increase in interest expense from new debt arrangements was partially offset by a $30.5 million increase in interest income from higher balances held in interest-bearing demand deposit accounts.The company recognized a $53.3 million gain on the change in fair value of derivatives, comprising a $69.9 million increase in the value of its Babcock & Wilcox common stock warrant partially offset by a $16.7 million decrease in the fair value of derivative assets tied to preferred units. It also recorded a $4.8 million gain on the change in fair value of investments, reflecting the appreciation of its B&W common stock position. Neither gain was present in the year-ago quarter. As of May 31, Applied Digital held cash, cash equivalents and restricted cash of approximately $4.2 billion compared with $2.1 billion as of Feb. 28. Total debt stood at approximately $5 billion compared with $2.7 billion at the end of the third quarter of fiscal 2026, reflecting the closing of $2.15 billion of senior secured notes tied to Polaris Forge 2, along with a new revolving credit facility.Operating cash flow was positive $89.7 million for the fiscal year ended May 31, 2026, a marked improvement from cash used in operations of $115.4 million in the prior fiscal year, aided by a strong step-up in collections during the fourth quarter. Applied Digital ended the fiscal year with roughly 1.4 gigawatts of contracted critical IT load across five AI Factory campuses, representing approximately $36 billion in total contracted lease revenue, or approximately $86 billion including renewal options. It is actively marketing another 1.7 gigawatts across multiple states, citing robust demand and rising lease rates.Management is in advanced talks to expand capacity by 100 MW and 150 MW with two existing investment-grade customers, which would lift total capacity to 1.66 gigawatts and add over $6 billion in contracted revenue at current rates. The company is also working with Base Electron to develop roughly 1.2 gigawatts of natural gas fired generation in the Dakotas to support further expansion.Applied Digital now expects to hit its $1 billion annual net operating income target roughly three years ahead of schedule, with quarterly capex guided at approximately $600 million as construction continues across its campuses. Applied Digital currently carries a Zacks Rank #3 (Hold).Some better stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Applied Materials AMAT and Cisco Systems CSCO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of Analog Devices have rallied 37.1% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 59.4% year over year.Shares of Applied Materials have skyrocketed 101.1% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 4 cents over the past 30 days, indicating a rise of 28.9% year over year.Cisco Systems shares have surged 48.7% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, indicating an increase of 12.3% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Digital Corporation (APLD) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Applied Digital reported fourth quarter revenue that surpassed Wall Street estimates. Management linked the result to strong demand for its AI focused data center infrastructure. The company highlighted growing usage from AI clients, including existing contracts with CoreWeave. Applied Digital, traded as NasdaqGS:APLD, has drawn fresh attention after this latest revenue beat, with investors weighing the result against a recent share price of $26.375. The stock is down 12.2% over the past week and down 32.6% over the past month, yet it remains up 160.6% over the past year and 203.2% over five years. That combination of recent weakness and longer term gains frames the new earnings detail in a different light for existing and potential shareholders. For readers tracking the AI infrastructure theme, this earnings update adds another data point on how demand for high performance data centers is reflected in Applied Digital's revenue. The rest of this article will focus on what has changed in the business since earlier coverage, how current contracts and capacity plans might affect future quarters, and which risks investors should keep in mind when assessing NasdaqGS:APLD. Stay updated on the most important news stories for Applied Digital by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Applied Digital. See which insiders are buying and buying and selling Applied Digital following this latest news. ✅ Price vs Analyst Target: Applied Digital trades at US$26.38, which is about 64% below the US$73.32 analyst price target. ⚖️ Simply Wall St Valuation: Valuation status is marked as unknown, so investors do not yet have a clear fair value signal from this model. ❌ Recent Momentum: The share price is down 32.6% over the past 30 days despite the quarterly revenue beat. There's only one way to know the right time to buy, sell or hold Applied Digital. Head to Simply Wall St's company report for the latest analysis of Applied Digital's Fair Value. 📊 The revenue beat linked to AI infrastructure demand supports the current business narrative. The share price pullback may reflect concerns about sustainability of that demand. 📊 Watch contract additions or expansions with AI clients, data center utilization rates, and any updates to analyst estimates relative to the US$73.32 target. ⚠️ Key flagged risks include significant insider selling, less than one year of cash runway, recent shareholder dilution, and a volatile share price versus the wider US market. For the full picture including more risks and rewards, check out the complete Applied Digital analysis. Alternatively, you can check out the community page for Applied Digital to see how other investors believe this latest news will impact the company's narrative. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include APLD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]