Applied Digital posted fourth-quarter revenue figures that blew past Wall Street expectations on Monday, fueled by surging demand from a growing list of artificial intelligence customers for its data center operations.
The company’s stock climbed 5.4% in after-hours trading following the announcement. Shares are up 7.6% for the year through Monday’s close. Applied Digital counts CoreWeave among its clients.
The company specializes in designing, constructing, and operating data centers, offering colocation services for AI, networking, and blockchain computing needs. It has been securing long-term contracts with AI and networking customers eager to lock in data center capacity to support their rapidly expanding models and services.
Here are the key numbers from the quarterly report:
Revenue for the three-month period ending May 31 skyrocketed 407% to $258.7 million — far exceeding the analyst consensus estimate of $94.8 million, according to figures compiled by LSEG.
On a per-share basis, the company reported adjusted earnings of 4 cents, a dramatic turnaround from the 22-cent loss analysts had anticipated.
CEO Wes Cummins offered a bullish outlook on the company’s trajectory. “We are still in the early innings of what we believe will likely be the largest buildout of critical infrastructure in modern economic history,” he said.
Cummins added, “We see demand for high-power-density, purpose-built AI data centers remaining extremely robust.”
The company has also been landing major long-term lease agreements. In June, Applied Digital announced a 15-year lease with a U.S.-based hyperscaler at its Delta Forge 2 location, a deal projected to generate $5.2 billion in revenue. That came on the heels of a $7.5 billion long-term agreement signed in April with an unnamed hyperscaler at its Delta Forge 1 facility.
The company has noted that approximately 70% of its contracted revenue is now backed by U.S.-based investment-grade hyperscalers.
