APLD Stock Today, January 9: EPS Miss, 250% Sales Surge, $2.35B Notes
Shares of APLD are in focus after Applied Digital posted FY26 Q2 results. APLD stock reacted to a wider-than-expected loss of $0.11 per share, alongside a 250% year-over-year revenue surge to $126.6 million. Growth came from high-performance computing fit-outs and initial CoreWeave lease revenue in AI data centers. Management also closed $2.35 billion in 2030 notes and now has 600 MW under contract, pointing to about $16 billion in prospective lease revenue. We break down what the mix of an EPS miss and strong pipeline means for U.S. investors.
Earnings: Miss on EPS, but revenue jumps
Applied Digital reported a $0.11 per-share loss for FY26 Q2, missing estimates, while revenue climbed 250% year over year to $126.6 million. The quarter included higher build-out costs tied to new capacity and early-stage AI workloads. Management highlighted continued demand from hyperscalers, but profitability lagged due to ramp timing and investment. See the top-line and EPS details here: source.
The company’s growth was led by high-performance computing fit-outs and the start of CoreWeave lease revenue, which moved more capacity into service for AI data centers. As racks energize, utilization improves and revenue recognition accelerates. This step-up confirms near-term demand trends. Management emphasized that lease starts should expand through 2026, boosting recurring revenue. Full results and commentary: source.
Capital, contracts, and lease ramp
Management now has 600 megawatts under contract, translating to about $16 billion in prospective lease revenue over contract lives. This supports a multi-year visibility window as deployments scale. For APLD stock, contracted megawatts help de-risk future cash flows, provided build schedules, interconnects, and GPU deliveries stay on track. Execution speed and uptime remain central to conversion.
Applied Digital closed $2.35 billion in 2030 senior notes to fund build-outs and customer commitments. Leverage will lift interest expense and adds execution risk if ramps slip. Still, fixed-rate funding extends runway into the lease start cycle. Investors should watch debt-to-equity (1.68), liquidity (current ratio 4.82), and the cadence of lease commencements versus capex.
Market reaction, valuation, and Street view
APLD stock trades near $30.20 today, up about 2.2%, with a 52-week range of $3.31 to $40.20. Three-month performance is +124%, and one-year is +315%. RSI sits at 57.4, ADX at 13.4 signals no strong trend, and CCI is overbought at 143. Bollinger upper band is $33.36. Expect volatility; ATR is 2.53, and Stochastic %K is 82.6.
The Street leans bullish: 17 Buys, 0 Holds, 0 Sells, with a consensus target near $40.12 (high $99, low $7). Valuation screens rich on sales (P/S ~31.6) and book (P/B ~5.46) with negative earnings. For APLD stock, the debate is growth visibility versus execution and financing costs. Next earnings is scheduled for April 13, 2026.
Key timelines, risks, and what to watch
Focus on lease start timing, energized megawatts, and CoreWeave lease revenue contribution each quarter. Track utilization rates, gross margin lift as sites mature, and any updates to the 600 MW backlog. Investors should also watch interconnect milestones, GPU/accelerator deliveries, and build costs per megawatt as primary signals for APLD stock.
Main risks include project delays, higher interest expense, and potential customer concentration. Catalysts include faster lease commencements, new hyperscaler wins, and margin expansion from stabilized sites in AI data centers. Any revision to contracted capacity or the ~$16 billion lease pipeline would likely move APLD stock meaningfully.
Final Thoughts
APLD stock sits at the center of two forces: a clear revenue ramp from AI data centers and a near-term earnings gap fueled by build costs and interest expense. The 250% revenue jump to $126.6 million and 600 MW under contract support multi-year growth, while $2.35 billion in 2030 notes fund capacity but raise leverage. Our takeaway: watch the quarterly lease start cadence, utilization, and margins to confirm the path to cash generation. Monitor CoreWeave lease revenue, additional hyperscaler demand, and unit economics per megawatt. If lease commencements track plan into 2026–2027, operating leverage can improve. If delays appear, expect multiple compression and higher volatility.
FAQs
What did Applied Digital report for FY26 Q2?
The company posted a wider-than-expected EPS loss of $0.11, while revenue rose 250% year over year to $126.6 million. Growth was driven by high-performance computing fit-outs and initial CoreWeave lease revenue tied to AI data centers. Management reiterated strong demand, though profitability lagged due to ramp timing and investment needs.
Why is APLD stock moving today?
APLD stock is reacting to mixed results: a notable EPS miss alongside rapid revenue growth and a larger contracted base. Investors are weighing a stronger 2026–2027 lease ramp and hyperscaler demand against higher leverage from $2.35 billion in 2030 notes and the timing of lease commencements and margins.
How risky is the $2.35 billion 2030 notes deal?
The notes increase interest expense and raise execution risk if lease ramps slip, potentially pressuring coverage ratios. That said, the fixed-term funding supports ongoing build-outs and customer commitments. We suggest tracking debt-to-equity (about 1.68), liquidity (current ratio near 4.82), and the pace of lease starts relative to capital spending.
What should investors watch next for APLD stock?
Key items include lease start dates, energized megawatts, utilization, and gross margin progress as sites mature. Also monitor CoreWeave lease revenue contributions, any new hyperscaler wins, and updates to the 600 MW contracted base and ~$16 billion prospective lease revenue. The next earnings date is April 13, 2026.
Is APLD stock attractive after the earnings miss?
It depends on risk tolerance. The growth case is tied to the 2026–2027 lease ramp and AI data center demand, while valuation is elevated on sales and book metrics. If execution stays on schedule, operating leverage can improve. Delays or cost overruns could pressure the shares near term.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
