TLDR
- Applied Digital reported adjusted loss of 3 cents per share, beating analyst estimates of 15 cents loss
- Company secured $11 billion in contracted revenue through massive 15-year lease agreement with CoreWeave
- Stock surged over 30% following earnings report and CoreWeave deal announcement
- Multiple analysts raised price targets, with Needham increasing to $16 and HC Wainwright to $15
- Fourth-quarter revenue of $38.01 million missed estimates but was up 41% year-over-year
Applied Digital shares jumped over 30% Thursday following fourth-quarter results that beat earnings expectations and news of a transformative leasing agreement with AI infrastructure company CoreWeave.
The digital infrastructure provider reported an adjusted loss of 3 cents per share for the fourth quarter. This easily beat analyst estimates calling for a loss of 15 cents per share.
Revenue came in at $38.01 million, missing analyst expectations of $40.84 million. However, total revenue was up 41% compared to the same period last year.
The revenue growth was primarily driven by increased capacity coming online in Applied Digital’s data center hosting business. The company has been transitioning its focus to building high-performance computing data centers for artificial intelligence applications.
CoreWeave Partnership Delivers Massive Revenue Stream
The real driver behind Thursday’s stock surge was Applied Digital’s announcement of multiple lease agreements with CoreWeave. These deals are expected to generate approximately $7 billion in contracted revenue over the lease terms.
CoreWeave also exercised an option after the quarter ended. This option will add another $4 billion in contracted revenue to the existing agreements.
Combined, the CoreWeave deals represent about $11 billion in future contracted revenue for Applied Digital. The partnership involves a 15-year, 400-megawatt leasing agreement.
“These long-term leases mark a defining moment for Polaris Forge 1, one of North America’s most ambitious data center projects,” said Wes Cummins, chairman and CEO of Applied Digital. The campus is purpose-built for artificial intelligence and high-performance computing.
The Polaris Forge 1 facility combines massive power capacity with rapid deployment capabilities. It’s designed to scale up to 1 gigawatt of power capacity.
Analyst Response and Stock Performance
Wall Street analysts responded positively to Applied Digital’s results and the CoreWeave partnership. HC Wainwright & Co. analyst Kevin Dede maintained a Buy rating on the stock.
Dede raised his price target from $12 to $15 following the quarterly results. Needham analyst John Todaro also maintained a Buy rating and increased his price target from $12 to $16.
Applied Digital’s stock has been extremely volatile over the past year. The shares have had 104 moves greater than 5% during this period.
Despite the volatility, the stock has performed well in 2025. Applied Digital is up 71.3% since the beginning of the year.
At Thursday’s closing price of around $13.36 per share, the stock is trading close to its 52-week high of $13.86 reached in June 2025. Investors who bought $1,000 worth of shares five years ago would now have an investment worth $132,540.
Applied Digital reported having $120.9 million of cash, cash equivalents and restricted cash as of May 31. The CoreWeave option was exercised subsequent to the quarter’s end, adding $4 billion in contracted revenue to the existing agreements.
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