Applied Digital Reports $36 Billion Revenue Backlog as Revenue Surges 320 Percent

Key highlights

• Total revenue increased 320 percent year over year to reach 341.9 million dollars
• Contracted base term lease revenue backlog reached 36.0 billion dollars across 1,410 MW of capacity as of August 31, 2026
• High performance computing hosting services generated 262.6 million dollars during the reporting period
• Management guided for approximately 600 million dollars in capital expenditures for the upcoming quarter to support ongoing builds
• Company targeting 600 MW of capacity in service over the next 12 months
• Operational critical IT load at North Dakota campuses is expected to reach 300 MW by December 31, 2026

Financial Performance

Applied Digital reported total revenue of 341.9 million dollars, a 320 percent increase compared to the prior year period. The growth was primarily driven by the High Performance Computing hosting segment, which contributed 262.6 million dollars to the total. This follows a fiscal fourth quarter in 2026 where revenue was reported at 258.7 million dollars according to Stock Titan. The company is currently navigating high capital requirements associated with its massive infrastructure projects, with cash flows being directed toward the completion of facilities in North Dakota and the Southern United States.

Down 5.8% since our story on 7 Oct: $23.81 when we broke it → $22.44 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$24.58
15 Sep	$23.42
16 Sep	$24.39
17 Sep	$26.38
18 Sep	$28.12
21 Sep	$28.19
22 Sep	$28.54
23 Sep	$27.23
24 Sep	$27.06
25 Sep	$26.25
28 Sep	$24.53
29 Sep	$25.41
30 Sep	$24.37
1 Oct	$24.16
2 Oct	$25.38
5 Oct	$24.70
6 Oct	$25.34
7 Oct	$23.81
8 Oct	$23.85
9 Oct	$23.68
12 Oct	$23.25
13 Oct	$22.44

Management Outlook

Looking forward, management is focusing on a 12 month window to bring 600 MW of capacity into service. A near term milestone includes reaching 300 MW of operational critical IT load at its North Dakota campuses by the end of 2026, as reported by Stock Titan. Long term financial targets include achieving 1 billion dollars in annual recurring revenue for the Chronoscale cloud service by 2027. To facilitate this growth, the company has guided for 600 million dollars in capital expenditures for the next quarter, according to 247wallst.com.

Business Overview

Applied Digital Corporation provides next generation digital infrastructure for the high performance computing and artificial intelligence sectors. The company operates large scale data centers designed to host energy intensive computing applications. Its primary revenue streams are derived from HPC hosting services and its Chronoscale cloud platform. The business model relies on securing large scale power allotments and long term lease contracts, evidenced by the 36 billion dollar backlog across 1,410 MW of critical IT load reported as of August 31, 2026, via ir.applieddigital.com.

Sector Dynamics

The digital infrastructure sector is currently defined by a high demand for AI factory capacity, though power availability remains the primary gating factor for growth. While Applied Digital has secured significant future capacity, the company faces a long term dependency on power generation timelines. Specifically, a 1,200 MW generation project intended to support future phases is currently targeted for a 2030 delivery, highlighting the extended lead times required for utility scale infrastructure in the current market environment.

What to Watch

• Execution of the 600 million dollar capital expenditure plan for the current quarter
• Achievement of the 300 MW operational target in North Dakota by December 31, 2026
• Fiscal Q2 2027 earnings results which are scheduled for release on January 6, 2027 according to Zacks
• Progress on the 1,200 MW power generation project delivery timeline as the company scales to meet its 2027 ARR targets

Power Constraints

“Power availability remains the primary gating factor.”

Management commentary

“Power availability remains the primary gating factor.”

Applied Digital Corporation · financial snapshot

Share price	$23.81
Market cap	$6.9B
Revenue (annual)	$611M
1-month price change	-9.71%
Sector	TechnologyInformation Technology Services

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.