"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 - 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 and has been re-rated from a crypto-hosting niche into a high-performance computing and AI data-center operator, driving a stock surge in 2025. A 15-year lease with AI hyperscaler CoreWeave is expected to generate $7 billion in contracted revenue and anchor the Polaris Forge 1 campus as an AI infrastructure hub. Consensus estimates project Q1 revenue of $45.46 million and FY2027 revenue of $488.87 million, with GAAP EPS remaining negative. Q1 revenue is expected down 25% year-over-year as the company shifts away from legacy Cloud Services toward lease recognition, while fit-out revenues should lift EPS sequentially.
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