Applied Digital (NASDAQ: APLD) Earnings Preview: AI Data Center Growth and Valuation Insights

• Applied Digital is expected to report its fiscal first-quarter earnings with an estimated loss of $0.30 per share on $116.30 million in revenue, as investors monitor the conversion of new data center capacity into financial gains.
• The company continues to expand its AI and high-performance computing infrastructure, with 250 MW now operational and a strategic goal to achieve $1 billion in net operating income by 2027 through further capacity deployment.

Applied Digital (NASDAQ: APLD) builds data center capacity for AI and high-performance computing customers. It is expected to report fiscal first-quarter earnings after the market closes on Wednesday, October 7, 2026. Wall Street estimates a loss of about $0.30 per share on revenue of approximately $116.30 million.

The report gives investors a chance to see whether new capacity is turning into revenue. Applied Digital has completed the second phase of its Polaris Forge 1 campus, adding 75 megawatts of IT capacity. The campus now has 250 MW operating, compared with 400 MW under contract.

Applied Digital reports $36 billion in contracted lease revenue, while CoreWeave accounts for 30% of its contracts. Management has moved its $1 billion net operating income target forward to 2027. Net operating income measures earnings from operations before items such as interest and taxes; reaching that target depends on bringing more capacity online.

Valuation adds pressure to the earnings report. Applied Digital trades at 12.36 times trailing sales, a measure based on past revenue. As highlighted by Seeking Alpha, its forward sales multiple is 3.90, based on expected revenue rather than past revenue.