Applied Digital reported fiscal first-quarter 2027 revenue of $341.9 million, up 322% from $80.9 million a year earlier, after the close on 7 October 2026. Adjusted revenue, excluding the consolidated ChronoScale business, was $300.4 million, well above published estimates that varied roughly from $111 million to $134 million depending on the source and revenue definition.
The earnings picture was mixed. Net loss attributable to common stockholders widened to $221.0 million, or $0.76 per share, from $18.5 million, or $0.07 per share, a year earlier. On an adjusted basis, the company was close to break-even with a net loss of $4.1 million, or $0.01 per share, beating expectations for a loss of about $0.26 to $0.30. Adjusted EBITDA rose to $64.4 million from $0.5 million.
Revenue breakdown showed services revenue of $262.8 million, up 225%, and data center rental revenue of $79.1 million. The HPC Hosting segment produced $262.6 million in revenue and $33.4 million of operating profit, while the older Data Center Hosting business added $37.8 million in revenue and $13.3 million in operating profit.
Applied Digital's contracted lease book now covers about 1.41 gigawatts of critical IT load across five campuses, worth about $36 billion in base-term revenue, or about $86 billion if all renewal options are exercised. At Polaris Forge 1 in North Dakota, live capacity reached 250 MW after the second 75 MW phase came online in October, with a third 150 MW building under construction. CEO Wes Cummins said the company is building for the long term and aims to be the category leader in purpose-built AI factories for tier-one hyperscalers.
The company also disclosed expansion moves, including access to up to 1 GW of potential power capacity in Finland and a power purchase agreement tied to a planned 1,200 MW natural gas plant in North Dakota. Its ChronoScale unit announced a Microsoft deal for a 50 MW AI compute deployment using Nvidia GB300 NVL72 systems.
Financing remains a swing factor. Applied Digital issued $1.59 billion of 7.000% senior secured notes due 2031 to fund the third Polaris Forge 1 building and repay a $300 million bridge facility. At quarter end, the company held $3.7 billion in cash and restricted cash and carried $6.4 billion in debt. Total costs and expenses rose to $404.3 million from $90.7 million a year earlier.
APLD shares closed at $23.81 on 7 October, down 6.04%, before climbing 4.75% to $24.94 after hours. Analyst targets range from $22 at Rothschild & Co Redburn to $83 at Needham, with UBS and Morgan Stanley at $38 and an average target around $60.07. Wall Street consensus remains a Strong Buy, but the post-results session will test whether investors focus on contracted AI factory growth or the debt-fueled buildout.
