"The stock has surged more than 260% so far in 2025 as investors have re-rated the company from a crypto-hosting niche player into a high-performance computing (HPC) and AI-data-center operator. Since last quarter's earnings release, shares are up 180% after APLD announced a transformative 15-year lease with AI hyperscaler CoreWeave (Nasdaq: CRWV) - a deal expected to generate $7 billion in contracted revenue and cement Applied Digital's flagship Polaris Forge 1 campus as a major AI infrastructure hub."
"That implies Q1 revenue down 25% YoY from $60.7 million a year ago as Applied Digital transitions away from its legacy Cloud Services business and toward lease recognition on AI infrastructure projects. Analysts expect a modest sequential improvement in EPS as fit-out revenues from Polaris Forge begin to flow through late this quarter and into Q2. Longer-term consensus implies 91% top-line growth in FY 2027 as CoreWeave and future hyperscaler leases ramp to full capacity."
Applied Digital reports fiscal Q1 2026 results after the close at 4:05 p.m. ET. The stock has risen over 260% in 2025 as the company shifts from crypto-hosting to high-performance computing and AI data centers. APLD secured a 15-year lease with CoreWeave expected to generate $7 billion in contracted revenue and position Polaris Forge 1 as an AI infrastructure hub. Q1 revenue is expected to be $45.46 million, down about 25% year-over-year, as the company moves from Cloud Services to lease recognition. Analysts forecast modest EPS improvement as Polaris Forge fit-out revenues begin to flow, with faster long-term top-line growth expected through 2027.
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