Applied Digital (APLD) Stock Soars 28% on Q1 Earnings Beat and Coreweave Partnership

TLDR

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Applied Digital reported Q1 revenue of $64.2 million, beating analyst estimates of $50 million by 28% and marking an 84% year-over-year increase.
The company secured a third lease with CoreWeave for 150MW in North Dakota, bringing total contracted lease revenue to approximately $11 billion over 15-year terms.
Adjusted loss per share came in at $0.03, better than the expected loss of $0.13-$0.16 per share.
APLD shares surged 27.86% in premarket trading to $37.45 after the earnings announcement.
The company broke ground on Polaris Forge 2 with initial 200MW capacity coming online in 2026 and secured $362.5 million in new capital after quarter-end.

Applied Digital released fiscal Q1 2026 earnings that exceeded Wall Street expectations. The company reported revenue of $64.2 million compared to analyst estimates of $50 million.

Applied Digital, $APLD, Q1-FY26. Results:
📊 Adj. EPS: -$0.03 🟢
💰 Revenue: $64.21M 🟢
📈 Net Loss: $27.82M
🔎 New lease agreements with CoreWeave boost total contract value to $11B, reinforcing Applied's strategic role in AI infrastructure. pic.twitter.com/LzwYdsZJG3
— EarningsTime (@Earnings_Time) October 9, 2025

This represents an 84% increase from the same period last year. The earnings beat sent shares up 27.86% to $37.45 in premarket trading on Friday.

The Data Center Hosting Business segment generated $37.9 million during the quarter ended August 31. Increased tenant fit-out services and expanded hosting operations drove the revenue growth.

Applied Digital reported an adjusted loss per share of $0.03. Analysts had expected a loss between $0.13 and $0.16 per share.

The company’s cost of revenues rose 144% to $55.6 million in the quarter. About $25 million of this cost went toward building and preparing facilities for high-performance computing clients.

CoreWeave Partnership Expands to $11 Billion

Applied Digital finalized a new lease agreement with CoreWeave in August. The deal covers an additional 150MW at the Polaris Forge 1 campus in North Dakota.

This third lease completes the full 400MW capacity at the facility. Total anticipated contracted lease revenue now reaches approximately $11 billion over 15-year terms.

The company previously announced $7 billion in revenue from two initial 15-year leases with CoreWeave earlier this year. CEO Wes Cummins noted that hyperscalers are expected to invest around $350 billion into AI deployment this year.

Applied Digital has positioned itself to serve the growing demand for AI computing infrastructure. Businesses continue racing to deploy next-generation AI models that require high-performance data center capacity.

Roth Capital said last week the company could potentially secure another high-performance computing colocation agreement by year-end. The analyst note came before the Q1 earnings release.

New Campus Development and Capital Raise

Applied Digital broke ground on Polaris Forge 2 during the quarter. The new facility is designed for AI and high-density workloads.

The initial 200MW phase is scheduled to come online in 2026. The campus has potential for a full 1GW buildout by 2027.

The company secured $362.5 million in capital after the quarter ended. This included $112.5 million from a $5 billion preferred equity facility with Macquarie.

Another $200 million came through Series G preferred stock. Management has set a target of $1 billion in net operating income within five years.

The company now has over $1.6 billion in financed infrastructure across both campuses. Multi-year lease agreements support the expansion plans.

Applied Digital stock closed Thursday’s regular session at $29.29, up 4.83%. The stock then surged 14% in after-hours trading before extending gains in premarket hours.

Year-to-date returns stand at 283.38% compared to the S&P 500’s 14.51% gain. The one-year return of 295.81% compares to 16.28% for the broader market.

Applied Digital maintains a market capitalization of $7.888 billion as of October 2. The company’s 52-week range spans from $3.31 to $29.98.

Analyst price targets range from $18.00 to $43.00, with an average of $27.00. The current premarket price has exceeded the consensus target.

The stock carries a beta of 6.59, indicating high volatility. Analyst recommendations remain predominantly bullish as the company serves surging demand for AI data center infrastructure.

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