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Applied Digital’s Earnings Show Its Data Center Bet Is Starting to Pay Off

Applied Digital posted its fiscal first quarter 2027 earnings, revealing that soaring revenue was accompanied by a widening net loss due to growing artificial intelligence investments. The artificial intelligence data center company recorded $341.9 million in revenue, surpassing analyst expectations. The company also announced that its flagship campus capacity reached 250 megawatts. Following the earnings release, the company stock experienced a premarket jump. Major financial institutions adjusted their outlooks and price targets in response to the operational updates and ongoing campus expansion efforts.

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  • ✓ Applied Digital reported $341.9 million in revenue for the fiscal first quarter of 2027.
  • ✓ Revenue surged 322 percent as artificial intelligence data center capacity reached 250 megawatts at the flagship campus.
  • ✓ Wells Fargo raised its stock price target following the earnings report, citing debt raises for Meta leases and a 250-megawatt expansion as catalysts.
  • ✓ Needham noted that Applied Digital stock had lost 52 percent since May while seeing a potential 194 percent upside.
🛡️ Source Corroboration: 13 independent reporting domains (95% confidence) ⏱ Read time: ~2 min

What changed

Applied Digital released its fiscal first quarter 2027 earnings report, showing revenues surging past analyst estimates alongside increased losses from artificial intelligence investments.

Live updates

  1. Applied Digital Reports Soaring Q1 Revenue on AI Data Centers

    Applied Digital posted its fiscal first quarter 2027 earnings, revealing that soaring revenue was accompanied by a widening net loss due to growing artificial intelligence investments. The artificial intelligence data center company recorded $341.9 million in revenue, surpassing analyst expectations. The company also announced that its flagship campus capacity reached 250 megawatts. Following the earnings release, the company stock experienced a premarket jump. Major financial institutions adjusted their outlooks and price targets in response to the operational updates and ongoing campus expansion efforts.

    Why it matters

    The financial results highlight the heavy capital expenditures required to build out infrastructure for artificial intelligence workloads. Analysts are closely watching how data center operators finance massive deployments through debt raises and major client leases. While demand for specialized computing facilities remains exceptionally high, companies in the sector face severe financial pressures from widening net losses as they scale up operations.

    What is confirmed

    • Applied Digital reported $341.9 million in revenue for the fiscal first quarter of 2027.
    • Revenue surged 322 percent as artificial intelligence data center capacity reached 250 megawatts at the flagship campus.
    • Wells Fargo raised its stock price target following the earnings report, citing debt raises for Meta leases and a 250-megawatt expansion as catalysts.
    • Needham noted that Applied Digital stock had lost 52 percent since May while seeing a potential 194 percent upside.

    What to watch next

    • Execution of upcoming debt raises and lease agreements for Meta.
    • Progress on the planned 250-megawatt campus expansion.
    • Future quarterly revenue and net loss trajectories.
    Sources used for this update (14)
    1. stocktwits.com — Redwire CEO Says Orbital Data Centers Are Still In ‘Early Days’ Of A Potential Space Infrastructure B....
    2. Barron's — Applied Digital’s Earnings Show Its Data Center Bet Is Starting to Pay Off
    3. Reuters — Applied Digital's revenue soars, loss widens on growing AI investments
    4. Yahoo Finance — APLD Stock Gets Target Hike From Wells Fargo Post Earnings - Analyst Sees Debt Raises For Meta Leases, 250 MWs Expansion As Catalysts Ahead
    5. TIKR.com — Applied Digital Has Lost 52% Since May: Needham Sees 194% Upside
    6. WSJ — 🔎 Under the Radar: Applied Digital Stock Jumps Premarket
    7. Yahoo Finance — APLD Q3 Deep Dive: AI Data Center Growth and Strategic Campus Expansion Highlight Quarter
    8. Applied Digital Corporation (APLD) — Applied Digital Reports Fiscal First Quarter 2027 Results
    9. www.zerohedge.com — "Delayed Revenue, Delayed Cash Flow": Morgan Stanley Warns Oracle Data Center Delays Could Crush Its Debt....
    10. www.fool.com — Applied Digital (APLD) Q1 2027 Earnings Call Transcript | The Motley Fool
    11. pro.thestreet.com — Tracking 33 Signals Across 9 of the Pro Portfolio’s Investment Themes
    12. www.theglobeandmail.com — Tuesday’s analyst upgrades and downgrades - The Globe and Mail
    confidence 95%
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