Earnings Recap — Q4 FY2026
CY Q3 2026 · Reported July 27, 2026 · Beat 1 of last 5 quarters
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Applied Digital's quarter underscores the accelerating pace of AI infrastructure commitments, with hyperscalers signing multi-billion-dollar leases at unprecedented scale. The company's ability to secure 1.41GW of contracted load and expand its pipeline to 5GW by 2032 signals sustained demand for purpose-built, high-density data center capacity. Its power strategy with Base Electron highlights the critical role of energy access in the AI buildout, positioning APLD as a key enabler of hyperscaler expansion in power-constrained regions.
Applied Digital reported Q4 FY2026 revenue of $258.7M, up 407% from the prior quarter, with HPC hosting contributing $203M (including $152.4M in tenant fit-out services) and data center hosting $37.3M. Adjusted EBITDA was $42.4M, and NOI margin hit 91%. The company signed leases for three new campuses (Delta Forge 1, Polaris Forge 3, Delta Forge 2) with a single high investment-grade hyperscaler, adding ~$20B in contracted lease value and bringing total contracted load to 1.41GW. It also delivered an additional 75MW at Polaris Forge 1, bringing that campus to 175MW online. The cloud business was separated into ChronoScale (ticker CHRN), with APLD retaining 96% ownership.
Management expects to achieve its $1B NOI run-rate goal a year from now, three years ahead of schedule. They are actively marketing an additional 1.7GW of capacity at higher lease rates and are in advanced negotiations with two existing investment-grade customers for ~250MW of expansion leases at materially higher rates. They see a path to over 5GW of critical IT load by 2032 through campus expansions, supported by Base Electron's 1.2GW of new gas-fired generation in the Dakotas. They expect to continue adding new campuses and maintain a conservative cost structure. The tone was confident, emphasizing on-time delivery and a repeatable financing model with Macquarie funding 75% of equity.
“We created $36 billion of total contracted long-term lease value and approximately $20 billion of that in the last quarter.”
on Contracted lease growth
“We now expect to achieve that run rate goal a year from now or 3 years ahead of schedule.”
on NOI goal acceleration
“We believe that if we continue to build the power that hyperscalers will continue to come to our regions.”
on Power strategy
Can you talk about Applied's strategy and signing those 3 leases, especially regarding yields relative to peers?
Wes explained that the focus was to build a solid foundation with investment-grade hyperscalers, achieving over 70% of contracted lease revenue with such customers. He noted that yields are in line with or above the band for similar leases, and that pricing has increased over the past six months. He emphasized the importance of SLAs and the long-term value of contracted NOI.
What is the cadence of CapEx spend for the balance of the calendar year?
Saidal guided to ~$600M CapEx for the upcoming quarter, with a step-up as construction advances at new campuses. He noted that financing for new sites is being secured earlier in the construction cycle.
Can you give color on the 100MW and 150MW expansions and the rate increases?
Wes said the 100MW expansion is at Polaris Forge 2 with the same tenant, and the 150MW is a third building at one of the Delta Forge campuses. Both are in advanced negotiations and expected to be at materially higher lease rates than existing leases.