Analysts Set Expectations for Applied Digital Q1 Earnings

Key Points

• Northland Securities expects Applied Digital to report a Q1 2027 loss of $0.06 per share and forecasts a $0.44 per-share loss for fiscal 2027. The firm maintains an “Outperform” rating with an $82 price target, above the analyst consensus target of $67.15.
• Applied Digital’s latest quarter showed a sharp earnings miss, with a $0.39-per-share loss versus the $0.09 expected, despite revenue surging 406.3% year over year to $240.35 million.
• Analyst sentiment remains broadly positive, with the stock carrying a consensus “Buy” rating, but investors face risks from negative margins, elevated leverage and recent weakness across AI data-center stocks.

Applied Digital Corporation (NASDAQ:APLD - Free Report) - Research analysts at Northland Securities issued their Q1 2027 earnings per share (EPS) estimates for shares of Applied Digital in a note issued to investors on Monday, July 27th. Northland Securities analyst M. Grondahl anticipates that the company will earn ($0.06) per share for the quarter. Northland Securities has a "Outperform" rating and a $82.00 price objective on the stock. The consensus estimate for Applied Digital's current full-year earnings is ($1.10) per share. Northland Securities also issued estimates for Applied Digital's Q2 2027 earnings at ($0.09) EPS, Q3 2027 earnings at ($0.14) EPS, Q4 2027 earnings at ($0.14) EPS and FY2027 earnings at ($0.44) EPS.

Applied Digital (NASDAQ:APLD - Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.09) by ($0.30). Applied Digital had a negative return on equity of 17.53% and a negative net margin of 37.78%.The company had revenue of $240.35 million for the quarter, compared to analysts' expectations of $96.85 million. During the same quarter in the prior year, the firm earned ($0.24) EPS. The firm's revenue was up 406.3% on a year-over-year basis.

Several other research firms have also recently issued reports on APLD. Lake Street Capital raised their price objective on shares of Applied Digital from $70.00 to $90.00 and gave the stock a "buy" rating in a research report on Tuesday, June 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Digital in a research note on Tuesday, July 21st. Compass Point restated a "buy" rating and set a $70.00 price target on shares of Applied Digital in a report on Friday, May 22nd. Lucid Cap Mkts raised shares of Applied Digital to a "strong-buy" rating in a research report on Wednesday, May 27th. Finally, Morgan Stanley started coverage on Applied Digital in a research report on Thursday, July 23rd. They issued a "buy" rating and a $36.50 price objective for the company. Three equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and a consensus price target of $67.15.

Applied Digital Trading Up 20.5%

Shares of APLD opened at $27.97 on Friday. The company has a current ratio of 2.38, a quick ratio of 2.38 and a debt-to-equity ratio of 1.65. Applied Digital has a 12-month low of $11.40 and a 12-month high of $50.72. The firm has a 50-day moving average price of $37.61 and a 200 day moving average price of $34.39. The firm has a market capitalization of $7.99 billion, a P/E ratio of -31.43 and a beta of 5.67.

Institutional Trading of Applied Digital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Albion Financial Group UT purchased a new position in shares of Applied Digital during the fourth quarter worth $25,000. Activest Wealth Management acquired a new stake in shares of Applied Digital in the fourth quarter valued at $25,000. Ameriflex Group Inc. purchased a new stake in shares of Applied Digital in the 4th quarter valued at $25,000. McMillan Office Inc. purchased a new stake in shares of Applied Digital in the 4th quarter valued at $25,000. Finally, Larson Financial Group LLC lifted its stake in Applied Digital by 56,450.0% during the 3rd quarter. Larson Financial Group LLC now owns 1,131 shares of the company's stock worth $26,000 after acquiring an additional 1,129 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company's stock.

Applied Digital News Summary

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Lucid Capital initiated or reiterated a Buy view on Applied Digital, adding to the positive analyst support for the shares. Applied Digital Corporation Receives a Buy from Lucid Capital
• Positive Sentiment: Needham & Company reaffirmed its Buy rating, signaling continued confidence in Applied Digital’s AI and high-performance-computing data-center strategy. Needham Reaffirms Buy Rating
• Positive Sentiment: A bullish analysis highlighted fiscal 2026 revenue of $258.7 million, non-GAAP EPS of $0.04, and $36 billion of contracted lease value—up 125% year over year. Investment-grade hyperscaler customers could provide greater visibility into long-term cash flows. Applied Digital Blowout FY 2026
• Neutral Sentiment: Zacks upgraded Applied Digital from Strong Sell to Hold, representing an improvement in its view but not a bullish recommendation. Zacks Research
• Negative Sentiment: Applied Digital’s recent quarterly results included a larger-than-expected per-share loss despite substantial revenue growth. The company’s negative margins and elevated debt-to-equity ratio remain risks as it funds expansion.
• Negative Sentiment: Applied Digital and other former Bitcoin miners pivoting to AI data centers have fallen sharply over the past month. The sector selloff raises concerns about stretched valuations, financing needs, power availability, and whether the AI infrastructure growth thesis can meet expectations. Data Center Stock Selloff
• Negative Sentiment: Reports that Citadel acquired much of the Situational Awareness portfolio after losses in leveraged AI infrastructure equities underscore broader forced selling and risk reduction in the AI trade, potentially weighing on comparable stocks such as APLD. Citadel Buys Situational Awareness Portfolio

About Applied Digital

Applied Digital NASDAQ: APLD is a technology company specializing in the development and operation of large-scale digital infrastructure and sustainable Bitcoin mining solutions. Through its integrated platform, the company designs, builds and manages turnkey data center facilities while also providing comprehensive hosting services for cloud, colocation and enterprise computing needs. Applied Digital's modular approach to facility design enables rapid deployment of capacity and streamlined integration of power, cooling and network connectivity.

In addition to its data center business, Applied Digital operates a network of Bitcoin mining sites that leverage vertically integrated capabilities, including hardware procurement, mining farm engineering, energy management and real-time performance monitoring.

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