Applied Digital Corporation (APLD) AI Stock Analysis

Applied Digital Corporation, based in Dallas, Texas, designs, develops, and operates datacenters across North America. Originally incorporated in 2001 as Applied Blockchain, Inc., the company rebranded in November 2022 to emphasize datacenter services beyond blockchain technology. It provides digital infrastructure solutions specifically tailored to the performance computing industry, supporting sectors that require advanced computational capabilities. With 256 employees, the company focuses on deploying state-of-the-art datacenters to meet the expanding requirements for secure, scalable, and efficient infrastructure across North America.

Revenue increased from $8.5M in FY2022 to $611.3M in FY2026, including 167.5% growth in FY2026. Gross margin rose to 25.8% in FY2026 from 5.2% in FY2025, but operating margin remained negative at -38.7%. Net loss widened to -$244.0M in FY2026 compared to -$231.1M in FY2025 and -$149.3M in FY2024. For the trailing twelve months ended August 31, 2026, revenue totaled $872.3M with quarterly revenue growth of 322.4% year-over-year. However, the company recorded a trailing twelve-month profit margin of -53.0% and diluted EPS of -$0.91.

As of August 31, 2026, Applied Digital held $2.95B in cash and short-term investments against $6.48B in total debt, resulting in net debt of $3.53B. Shareholders' equity stood at $1.78B, yielding a debt-to-equity ratio of 3.63 and a current ratio of 2.56. In FY2026, operating cash flow was $89.7M, but free cash flow was -$2.78B due to $2.87B in capital expenditures. Share buybacks were $1.2M, while share count expanded 446.0% over five years.

At $18.05, Applied Digital has an enterprise value of $11.25B and trades at a price-to-sales multiple of 6.3x, above the 2.8x median of its US-listed Technology peers. Its forward P/E of 526.3x sits well above the peer median of 18.8x, and its EV-to-revenue ratio is 18.4x. Over the past year, the shares dropped 50.7%, while the S&P 500 rose 16.8%. Over five years, the stock decreased 6.0% compared to an 83.0% gain for the index.

Wall Street coverage includes 11 Strong Buy, 2 Buy, and 2 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $64.27, representing a 256.0% premium over the last close of $18.05. For the fiscal year ending May 31, 2027, consensus estimates project revenue of $956.7M and an EPS of -$1.06. For FY2028, five analysts estimate revenue of $1.96B and an EPS of -$0.78. Applied Digital beat EPS estimates in 2 of the last 4 quarters.

This page is an AI-written research summary of Applied Digital Corporation (APLD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: APLD income statement, APLD balance sheet, APLD key metrics, APLD analyst forecast, APLD chart. See the APLD stock overview for the latest quote and news.