Applied Digital Reports Strong Q4 Revenue Growth Amid AI Data Center Expansion
Applied Digital Corporation (NASDAQ: APLD) reported a significant revenue increase in the fourth quarter, with total revenue surging by 407% year-over-year to $258.7 million as of May 31, 2026. The growth was driven primarily by its services and data center rental segments, which saw substantial contributions from AI-related contracts. Despite this strong performance, the company reported a net loss of $111.6 million due in part to high stock-based compensation expenses. The firm expanded its contracted AI data center capacity to 1.41 gigawatts, representing approximately $36 billion in long-term lease value. Management is also negotiating an additional 250 megawatts that could add over $6 billion in revenue. Applied Digital secured significant project financing and ended the quarter with $4.2 billion in cash against $5 billion in debt. Looking ahead, management aims to reach more than five gigawatts of capacity by 2032 and expects to achieve a net operating income run rate exceeding $1 billion within about one year.
Topics: AI data centers capital structure EBITDA improvement revenue growth