News · Applied Digital Corp. (APLD) · Technology

Applied Digital falls 6.0% after quarterly results show revenue surge and wider loss

Session of October 7, 2026 · Published October 8, 2026 · 3 min read

What happened

Applied Digital (APLD) fell 6.0% on October 7, 2026, because its quarterly results showed sharply higher revenue and a wider loss. The stock closed at $23.81 after opening 3.1% below the previous close, and trading volume was 2.7 times its 20-day average. Reuters and GlobeNewsWire reported the company posted strong revenue growth tied to expansion of high-performance computing hosting and AI-focused data center development, while management said stepped-up investments drove a wider net loss.

Closing price over the last 30 trading sessions. On October 7, 2026, APLD closed at $23.81, down 6.0% on the day and 11.4% lower than 30 sessions earlier.

How big was the move

The stock fell 6.0% on the day, a decline that was 1.1 times a typical daily move for this stock. Over the last five sessions the stock fell 2.3% while the S&P 500 rose 2.0%, leaving Applied Digital 29.8 percentage points behind the S&P 500 over one year. The Technology sector median fell 1.1% on the day, so the stock underperformed its sector by 4.9 percentage points. The S&P 500 itself fell 0.2% on the session. Applied Digital has a beta of 3.16, indicating the stock tends to move more than the market. Elevated volume on the session signalled stronger investor engagement around the earnings release.

Each bar is one day's price change; the outlined bar is October 7, 2026. A typical daily move over the past year was 6.5%, so the latest move equals 0.9 times that. Moves outside the dashed lines (about 12.9%) are unusual.

The technical picture

The stock sits below its short- and long-term moving averages, trading 7.4% below its 20-day moving average, 12.1% below its 50-day moving average and 25.9% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index reads 42, in the neutral range between 30 and 70. Applied Digital is 53.1% below its 52-week high; its price fell 15.9% over one month and 26.3% over three months. Volatility was 88% annualized over 60 days, lower than 87% of its own readings over five years, reflecting that recent swings have been large relative to the stock’s historical extremes.

Closing price over the past year. APLD ends the period 52.0% below its 52-week high, below its 50-day average ($27.09) and below its 200-day average ($32.13).

Fundamentals and valuation

For the four quarters through August 31, 2026, Applied Digital reported revenue of $853.8 million, which grew 289.9% from a year earlier. Gross margin improved to 25.4% from 14.5% a year earlier, and operating margin was 40.0% versus 35.7% a year earlier. Diluted earnings per share for the period were $-1.64 and free-cash-flow margin stood at 278.8%. Return on invested capital was 2.2%. Share count over one year increased by 13.9%, reflecting dilution that can weigh on per-share metrics.

Quarterly revenue by period end. The latest quarter brought $342M, 432.4% more than the same quarter a year earlier.

The stock's free-cash-flow yield is 32.6%. PromtFinance scores show uneven fundamentals: very weak on Value, Quality, Momentum and Stability; exceptional on Growth; and neutral on Revisions. Those scores reflect rapid top-line expansion alongside thin returns and a rising share count.

Earnings and analyst expectations

Applied Digital reported fiscal first-quarter 2027 results on October 7, 2026. The company posted revenue of $341.9 million, a 322% increase from $80.9 million a year earlier, and a per-share loss of $0.76 compared with a loss of $0.11 a year ago, Reuters and GlobeNewsWire reported. Management said revenue growth reflected expansion of its high-performance computing hosting operations and AI-focused data center development, and attributed the wider net loss to stepped-up investments to meet rising demand for data center services.

Diluted earnings per share by quarter. The latest quarter shows -$0.82, against -$0.07 in the same quarter a year earlier.

In the prior quarter the company posted earnings per share of $-0.01 against $-0.30 expected, 96.6% above estimates, producing one consecutive quarter beating estimates. The typical two-day reaction after recent reports was that the stock rose 1.8%.

Analysts provide a consensus price target of $61.65, which is 158.9% above the closing price, based on 14 analysts with ratings. Ninety-three percent of those ratings are Buy or equivalent positive ratings and the consensus rating is Buy. That gap between the current price and the consensus target highlights how expectations for the company’s growth differ from investor sentiment following the latest results.

What to watch

Next report: January 6, 2027.
Last report: October 7, 2026: earnings per share of $-0.01 against $-0.30 expected, 96.6% above estimates.
Consensus price target: $61.65, 158.9% above the closing price.
Trading activity: volume was 2.7 times its 20-day average on October 7, 2026.
One year performance: fell 14.1% and is 53.1% below the 52-week high.

Full APLD analysis: scores, chart and financials →