Applied Digital Earnings on October 7: $258.7 Million…

Applied Digital earnings on October 7 will not show whether the 75 megawatts switched on at Polaris Forge 1 this past Friday are producing rent. That capacity reached ready-for-service on October 2, and the fiscal first quarter under review ended on August 31. The release instead reopens a split the tape already struggled to price on July 27: a very large revenue number, and a GAAP loss that got worse. Applied Digital reported GAAP revenue of $258.7 million for the quarter ended May 31, 2026, up 407% from the prior-year period, and a continuing-operations loss of $110.6 million, or $0.39 a share, in its July 27 results release. Adjusted revenue, which excludes consolidated ChronoScale, was $240.4 million. The release crossed at 4:05 p.m. Eastern, after the cash close. Nasdaq daily closes were $26.375 that day, $26.62 on July 28, and $23.22 on July 29, which is 11.96% under the pre-release close.

The line most previews still fold into one beat is the mix. Of $203.0 million of HPC Hosting revenue in the May quarter, $152.4 million was tenant fit-out, $44.1 million was base rent, and $6.5 million was tenant recoveries. Fit-out is not the 15-year rent behind the $36 billion book. Having tracked Applied Digital since the releases started naming campuses rather than a single Ellendale hall, that split is the one to hold. MarketBeat’s history, retrieved October 4, prints $240.35 million against a $96.85 million estimate, beside adjusted revenue of $240.4 million rather than GAAP revenue of $258.7 million. Nasdaq’s surprise feed uses a May EPS consensus of -$0.18, not MarketBeat’s -$0.0917. For Wednesday, Nasdaq shows -$0.25 from four estimates and MarketBeat shows a Q1 average of -$0.04 from three. A $116.3 million revenue consensus is not on that page, so it is not used. The market paid for the top line, then punished the bottom line.

What is happening into the October 7 call

Applied Digital earnings this week cover the quarter ended August 31, not Friday’s hall. The September 28 release sets the call for Wednesday, October 7, at 5:00 p.m. Eastern. Dial-in is 1-833-461-5787 in North America and +1 (585) 542-9983 elsewhere, conference ID 153 131 451. The results release follows the close, so October 7’s cash session trades blind and Thursday, October 8, is the first full reaction. Gateway Group is on investor relations at 1-949-574-3860.

Inside the quarter is the June 30 ready-for-service on Phase 1 of Building 2 at Polaris Forge 1, 75 MW. The July 1 release and the July 27 results put live capacity at Ellendale at 175 MW, up from the 100 MW online since October 2025. June was a 100 MW month. July and August were 175 MW months. There is no base-rent guide for that step-up. The last clean print is $44.1 million.

Outside the quarter is October 2: three more 25 MW halls, Building 2 at its full 150 MW, and 250 MW operational against 400 MW contracted. It can be discussed on the call. It cannot sit in August revenue. Of the items July 27 listed as subsequent, only the June 30 hall had weeks of operation in the period being scored.

The May quarter was two results at once. GAAP revenue of $258.7 million was $208.2 million of services and $50.6 million of rental and other revenue. Adjusted net income was $12.9 million, or $0.04 a share, and adjusted EBITDA was $42.4 million, against $1.0 million a year earlier. The GAAP loss widened from $53.1 million, or $0.24 a share, to $110.6 million, or $0.39. SG&A rose from $41.0 million to $165.3 million, primarily on $116.8 million more stock-based compensation. The same-day 8-K furnished the results under Items 2.02 and 9.01.

APLD closed Friday at $25.38, up $1.22, or 5.05%, on 26,393,740 shares, about 56% above Nasdaq’s average volume of 16,875,246. From the January 2 close of $28.11 the stock is down 9.7%, and it is 48.9% under the May 28 close of $49.65, the high of this daily series. Nasdaq’s 52-week range is $19.005 to $50.725, and the quote summary shows a market cap of about $7.59 billion. Shares outstanding were 287,883,603 at May 31, against 224,909,669 a year earlier.

“Bringing another 75 MW of AI infrastructure online at Polaris Forge 1 further demonstrates our ability to turn large-scale power into operational AI infrastructure,” said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital, in the October 2 release. “Securing power is only the starting point. The real work is designing, building, commissioning, and operating the infrastructure that transforms those megawatts into usable capacity for customers.”

What customers have done, and what they have not said

The July 27 commentary says Applied Digital is building five campuses “for two hyperscalers and CoreWeave.” CoreWeave is named. The hyperscalers are not. Across the results release, the June 8 lease, the May 20 gigawatt release, the October 2 note, and the June bond deals, Nvidia, Microsoft, Amazon, Google, Meta, and Oracle do not appear. The silence is the fact. A credit file has an investment-grade description, not a ticker.

CoreWeave appears as a credit counterparty, not a commentator on this quarter. July 27 says the leases gained a restructured subsidiary, springing guarantees from CoreWeave, Inc., and a $50 million letter of credit after an A3 refinancing, adding security for 9.250% notes due 2030. The principal is not stated. A June 5 memorandum, disclosed June 8, would assign the Building 3 lease at Polaris Forge 1 to a CoreWeave subsidiary if that subsidiary reaches investment grade. July 27 discloses a separate memorandum for Building 4. The building numbers differ. No release through October 2 carries a CoreWeave comment on fiscal Q1.

FinanceFeeds reported on August 19 that CoreWeave shares fell 12% as its debt got more expensive, context for the guarantee language rather than a bridge to Wednesday’s EPS. An October 2 report said Nebius had lifted GPU prices by up to 21% and that CoreWeave was signing short contracts near $40 million a megawatt. That is a GPU-contract figure, not Applied Digital’s rent.

The unnamed hyperscaler is where the new lease dollars are. July 27 lists 300 MW at Delta Forge 1 in Boyce, Louisiana, about $7.5 billion of base-term revenue, with operations expected in calendar 2027, and 300 MW at Polaris Forge 3, also about $7.5 billion. The May 20 release is the Polaris Forge 3 step, when contracted capacity passed 1 GW. On June 8 the same customer signed 210 MW at Delta Forge 2, about $5.2 billion over 15 years and about $12.7 billion with renewals, operations expected in the first half of 2028. The three base terms add to $20.2 billion.

About 1.7 GW more is being marketed, and none of those three campuses is August revenue. Data Center Hosting revenue was $37.3 million in the May quarter, against $38.0 million. “Our Data Center Hosting business, which operates 286 MW for bitcoin mining across our two North Dakota sites, remains the highest return-on-assets business in the company,” Cummins, Chairman and Chief Executive Officer, said in the July 27 release. “We are paid based on the data center capacity provided to our customer, so as long as they are mining, we are paid regardless of where the price of bitcoin trades.” FinanceFeeds has framed a related funding gap at IREN.

Bull case, bear case, and the tape

Wednesday is not a single miss-or-beat. It is whether the market keeps paying for fit-out and keeps charging the stock for a GAAP loss built from stock compensation. July 28 closed up 0.93% at $26.62. July 29 closed at $23.22.

Lens	Bull-case reference	Bear-case reference	Source
EPS bar	Nasdaq’s August consensus is -$0.25 from four estimates, high -$0.06 and low -$0.37. Adjusted EPS last quarter was +$0.04.	GAAP EPS of -$0.39 missed MarketBeat’s -$0.0917 by about $0.30 and Nasdaq’s May bar of -$0.18 by $0.21. MarketBeat’s separate Q1 average is -$0.04.	Applied Digital, July 27, 2026; MarketBeat and Nasdaq, retrieved October 4, 2026
Revenue quality	Base rent was $44.1 million on 100 MW. July and August had 175 MW live. No rent guide has been published.	Fit-out was $152.4 million of $203.0 million of HPC revenue. MarketBeat’s $240.35 million actual beat a $96.85 million estimate.	Applied Digital, July 27, 2026; MarketBeat, retrieved October 4, 2026
Price map, not a new target	MarketBeat’s $60.88 average is 139.9% above $25.38. Nasdaq’s $70.50 field is 177.8% above it. The high published target is $90.00.	The $22.00 low target is 13.3% below $25.38. July 29’s $23.22 close is 8.5% below. March 30’s close was $20.545. The 52-week low of $19.005 is 25.1% below.	MarketBeat, retrieved October 4, 2026; Nasdaq closes, January 2 to October 2, 2026
Balance sheet	Cash, equivalents, and restricted cash were $4.2 billion. Adjusted EBITDA was $42.4 million in the quarter and $107.2 million for the year.	Debt was $5.0 billion, including 6.750% and 7.000% notes due 2031. Shares outstanding rose about 28%, to 287,883,603.	Applied Digital, July 27, 2026; June 9 pricing release

APLD daily closes, January 2 to October 2, 2026. July 27 finished at $26.375, before the release. The last close is $25.38, down 9.7% from January 2. Source: Nasdaq.

The columns are a test, not a destination. A move from $25.38 to $60.88 would be a 139.9% gain, and neither July nor Friday’s 5.05% rise says that arrives next week. The bullish print is base rent above $44.1 million and a GAAP loss that is not another $0.39. The bearish print is closer to rent plus $37.3 million of hosting, with the loss still large even after the $53.3 million derivative gain. Prices already printed, $23.22, $22.00, $20.545, and $19.005, are markers, not a new target.

Debt, dilution, and the power constraint

At May 31, cash, equivalents, and restricted cash were $4.2 billion and debt was $5.0 billion. Interest expense rose $31.9 million in the May quarter and interest income rose $30.5 million, so net interest expense was $10.6 million, against $8.5 million. The cash earns until it is spent. Full-year GAAP revenue was $611.3 million, up 167%. The continuing loss was $249.2 million, or $0.91 a share. Adjusted revenue was $539.7 million, and adjusted net income was $36.1 million, or $0.11.

Two 2031 deals set the coupon. APLD ComputeCo 2 completed $2.15 billion of 6.750% notes due 2031, at 98% of par, for 200 MW at Polaris Forge 2 in Harwood, North Dakota. On June 9, APLD ComputeCo 3 priced $1.59 billion of 7.000% notes due 2031 at par. The pricing release says the proceeds fund 150 MW at ELN-04, repay a Goldman Sachs bridge, fund reserves, and pay expenses, with closing expected around June 16, plus a completion guarantee. July 27 says the $300 million bridge was repaid from those proceeds. The two face amounts are $3.74 billion. That sum is arithmetic on the releases, not a company interest forecast.

The revolver is not secured by the data-center projects. It closed May 29, arranged by Goldman Sachs, at up to $350 million committed plus a $200 million accordion, maturing May 29, 2029, at SOFR plus 225 basis points or the base rate plus 125. July 27 says committed capacity was later $430 million, with $120 million of accordion unused. “The strong support we received from this syndicate of leading financial institutions underscores the scale of the opportunity before us and the confidence our banking partners have in our ability to execute,” said Saidal Mohmand, Chief Financial Officer of Applied Digital, in the June 8 release.

Outstanding shares rose from 224,909,669 to 287,883,603, up 62,973,934 shares, or 28.0%. The May-quarter weighted average was 285,651,622. A related-party loan receivable of $58.6 million sat on the May 31 balance sheet. Shareholders own about 10% of Base Electron, which with Babcock & Wilcox is developing about 1.2 GW of gas-fired generation in the Dakotas. That is a power plan, not revenue.

Three scenarios for the call and the week after

These are scenarios, not guarantees and not new targets. Each uses a published Applied Digital, MarketBeat, or Nasdaq figure, or a Nasdaq close. FinanceFeeds ran an Applied Digital scenario on August 11 with a $68 bull case and a $16 bear case in the headline. An older $106-and-$40 URL now redirects there. Neither pair is reused. The range retrieved October 4 is MarketBeat’s $22.00 to $90.00, average $60.88, and Nasdaq’s one-year field of $70.50.

The bullish scenario is a mix shift. The October 7 release shows base rent above $44.1 million, because the extra 75 MW was live in July and August, and fit-out is its own line. GAAP EPS lands near Nasdaq’s -$0.25, or between that and MarketBeat’s -$0.04, without another $116.8 million stock-comp charge. The call treats Friday’s 250 MW as subsequent and sketches the path from 250 MW to the contracted 400 MW. The week of October 12 holds above the July 29 close of $23.22. In that path, $60.88, 139.9% above $25.38, is a horizon map, not a five-session forecast.

The bearish scenario is that mess with less fit-out under it. Revenue prints nearer hosting-plus-rent than MarketBeat’s $240.35 million, because fit-out does not recur at $152.4 million, and the GAAP loss is again near $0.39. A -$0.25 result would match Nasdaq and miss MarketBeat’s -$0.04 average, the same split that let July be called both a beat and a miss. Thursday then tests $23.22, 8.5% under $25.38. Through that close, the $22.00 low target is 13.3% under Friday, with $20.545 and the $19.005 low as further markers if the call adds delay at ELN-04. None of those levels is a prediction.

The third scenario is a split, the base case if July is the template. Rent is up, fit-out is down, adjusted earnings are positive, and GAAP EPS sits between the two averages. October 8 is wide, as July 28 ran from $25.41 to $27.25 and July 29 from $22.93 to $27.01, and the week of October 12 finishes between $23.22 and $25.38, a band about 8.5% wide. The market still will not pay $60.88 for contracted gigawatts, and will not treat the $36 billion book as impaired. The tell is base rent versus fit-out, and the GAAP loss versus the adjusted $0.04. Applied Digital earnings on October 7 are that comparison.

Frequently asked questions

When is the Applied Digital earnings call, and who set the time?

Applied Digital set it. The September 28 release schedules the fiscal first-quarter 2027 call for Wednesday, October 7, 2026, at 5:00 p.m. Eastern, and says the results release follows that day’s close. The quarter ended August 31. Nasdaq’s quote page also lists October 7. MarketBeat’s FAQ, retrieved October 4, still said the date was unconfirmed and inferred from last year. Use the company release for the clock.

What did the company report for the May quarter?

For the quarter ended May 31, 2026, Applied Digital reported GAAP revenue of $258.7 million, up 407%, and a continuing loss of $110.6 million, or $0.39 a share. Adjusted revenue was $240.4 million. Adjusted net income was $12.9 million, or $0.04 a diluted share, and adjusted EBITDA was $42.4 million. HPC revenue was $203.0 million, including $44.1 million of base rent and $152.4 million of fit-out. Data Center Hosting revenue was $37.3 million.

Why do recaps say $240.35 million when the company says $258.7 million?

They are different lines. GAAP revenue is $258.7 million. Adjusted revenue, which excludes consolidated ChronoScale, is $240.4 million. The gap between those published figures is $18.3 million. MarketBeat’s history prints $240.35 million of actual revenue against a $96.85 million estimate, in line with the adjusted figure rather than the GAAP headline. Using only one number mis-states the quarter.

Does the October 2 addition of 75 MW fall inside this quarter?

No. Fiscal Q1 ended August 31, 2026. The October 2 notice, three 25 MW halls, takes Polaris Forge 1 to 250 MW operational against 400 MW contracted. That is a subsequent event. Inside the quarter is the June 30 delivery of Building 2’s first 75 MW, which took the campus from 100 MW to 175 MW. July and August ran at 175 MW. There is no company revenue guide for that step-up.

What price target is published, and what is this not?

MarketBeat, retrieved October 4, shows an average target of $60.88, a high of $90.00, and a low of $22.00, a Moderate Buy from 20 analysts, against a displayed $25.38. Nasdaq shows a one-year target of $70.50. From $25.38, the average is 139.9% higher and $70.50 is 177.8% higher. This article sets no target of its own. The paths above are scenarios mapped onto those figures and onto closes already on the tape.