Applied Digital (APLD) Stock: Revenue Jumps 322% as AI Demand Surges

TLDR

• Applied Digital revenue jumps 322% to $341.9 million in fiscal Q1 2027 results.
• HPC hosting revenue reaches $262.6 million as AI data center demand expands.
• Adjusted EBITDA rises to $64.4 million from $0.5 million in the prior year.
• APLD closes down 6.04% before rebounding 0.96% during after-hours trading session.
• Debt reaches $6.4 billion as expansion and financing costs pressure earnings.

Applied Digital reported fiscal first-quarter 2027 revenue of $341.9 million, up 322% year over year. APLD closed at $23.81, down 6.04%, before gaining 0.96% after hours to $24.04. The results showed data center growth, although higher costs and financing expenses widened the loss.

Applied Digital Corp., APLD

Revenue Growth Accelerates Across Core Operations

Services revenue reached $262.8 million, up 225% from $80.9 million one year earlier. Tenant fit-out work drove growth, while ChronoScale added $23 million from GPU hardware sales. Data center rental and other revenue added $79.1 million after hosting operations began.

Adjusted revenue rose to $300.4 million from $64.2 million during the prior-year quarter. Meanwhile, adjusted EBITDA increased to $64.4 million from $0.5 million in the comparable period. Net Operating Income reached $58.8 million, reflecting stronger core hosting performance.

Applied Digital reported a $221 million net loss for common stockholders. The loss equaled $0.76 per diluted share, compared with $0.07 previously. Higher compensation, fees, interest costs, and derivative losses pressured earnings.

HPC Hosting Drives Applied Digital Expansion

Applied Digital’s HPC Hosting business generated $262.6 million in quarterly revenue. The segment produced $33.4 million in operating profit from rent and fit-out services. Live capacity at Polaris Forge 1 reached 250 megawatts after the latest phase entered service.

The company holds leases covering about 1.41 gigawatts of critical IT load across five campuses. Those agreements represent about $36 billion in contracted base-term revenue across U.S. projects. Applied Digital expects Polaris Forge 2 to lift delivered capacity to 300 megawatts by year-end.

Expansion moved beyond the United States through an agreement covering one gigawatt in Finland. Management still centers execution on North Dakota, where power availability supports large data center projects. The company also secured power arrangements that could support further campus growth across the Dakotas.

Debt and Costs Remain Key Financial Factors

Applied Digital ended August with $3.7 billion in cash and restricted cash. However, total debt reached $6.4 billion after the company raised capital for construction. Interest expense climbed to $77.4 million from $8 million as debt balances increased sharply.

Selling, general, and administrative expenses rose 289% to $114.7 million during the quarter. Stock-based compensation contributed $51.7 million, while personnel and professional service costs climbed. Services cost of revenue also increased as tenant fit-out activity expanded across the HPC business.

Applied Digital continues building AI-focused campuses backed by long-term hyperscaler contracts and major power commitments. Revenue growth strengthens its scale, while debt and reported losses remain financial pressures. Fiscal first-quarter results showed stronger operating momentum alongside higher financing and corporate costs.

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