Applied Digital Stock Jumps 5% as Explosive AI Data Center Revenue Soars 139% in Q3 |
DALLAS — Applied Digital Corp. shares climbed more than 5% in early trading Monday to $27.58 as investors cheered the company's accelerating pivot to high-performance computing and AI data centers, highlighted by a 139% surge in fiscal third-quarter revenue that far exceeded Wall Street expectations and underscored strong hyperscaler demand for its specialized infrastructure.
The Nasdaq-listed stock (APLD) traded with solid volume as the digital infrastructure provider continued to benefit from last week's fiscal Q3 2026 results, released April 8. Revenue reached $126.6 million for the quarter ended Feb. 28, up sharply from $52.9 million a year earlier, driven largely by the first full quarter of operations at its Polaris Forge 1 campus hosting CoreWeave's AI workloads.
Approximately $71 million of the revenue increase came from the HPC hosting business, including base rent, tenant fit-out services and power pass-throughs. Adjusted revenue, a non-GAAP metric, hit $108.6 million, while adjusted net income was $33.2 million or $0.09 per diluted share — beating consensus estimates that had called for a loss.
The results marked a pivotal moment in Applied Digital's transformation from a blockchain-focused operator to a major player in AI-ready data centers. CEO Wes Cummins noted accelerating demand from hyperscalers seeking high-density, liquid-cooled capacity. "We are seeing a clear acceleration in demand for high-performance AI data center capacity, with hyperscalers as aggressive as we have ever seen them," he said in the earnings release.
Applied Digital has secured landmark long-term leases that provide massive revenue visibility. CoreWeave holds 400 MW under contract at Polaris Forge 1, representing roughly $11 billion in prospective lease revenue over the lease........