| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 8 | — | 17.3x | Bottom tier | |
Growth | 66 | 250.6% | 7.1% | Top tier | |
Quality | 24 | -5.7% | 4.5% | Bottom tier | |
Safety | 24 | — | 2.6x | Bottom tier | |
Capital Return | 37 | 0.12% | 0.06% | Bottom tier | |
Momentum | 20 | -24.6% | -1.6% | Bottom tier | |
Sentiment | 88 | 3 | 3 | Top tier |
Applied Digital develops data center campuses for high-performance computing and artificial intelligence, generating revenue from leasing equipped capacity to customers, tenant fit-out services, and reimbursement of related operating costs. Its operations also include providing powered space for Bitcoin mining at two sites in North Dakota, where payments are tied to the capacity provided to customers as long as they continue mining. It completed the spin-off of its cloud computing business into ChronoScale, which began trading under the ticker CHRN in May 2026, with Applied Digital retaining 96% ownership; its business therefore combines leased infrastructure with accelerated computing services.
Revenue reached 293.9 million dollars in quarter 4 of fiscal year 2026 (ending 2026-05), representing year-over-year growth of 475.4% compared with revenue of 51.1 million dollars in quarter 4 of fiscal year 2025 (ending 2025-05). Gross margin was 37.6% and operating margin was -48.2%, with net income of -85.2 million dollars and operating cash flow of 132.5 million dollars. High-performance computing hosting drives expansion through the Polaris Forge and Delta Forge campuses, while mining hosting and ChronoScale add two distinct revenue sources; however, the expansion of operations has not turned operating results profitable.
Revenue for fiscal year 2026 (ending 2026-05) reached 611.3 million dollars, with a gross margin of 35.1% and net income of -187.0 million dollars, compared with revenue of 228.6 million dollars, a gross margin of 5.2%, and net income of -231.1 million dollars in fiscal year 2025 (ending 2025-05). Cash flows illustrate the scale of investment required to turn contracts into operational facilities: operating cash flow reached 89.7 million dollars, but free cash flow was -2.8 billion dollars over the last 12 months through 2026-05-31. At the end of quarter 4 of fiscal year 2026, cash and investments totaled 1.6 billion dollars against total debt of 5.1 billion dollars.
Automated analysis for informational purposes only — not investment advice.
Q4 FY2026 (2026-05)
Last 12 months to 2026-05-31
When: 2026-10-08
Reported revenue at the 293.9 million dollar threshold
Gross margin at the 37.6% threshold
Operating margin at the -48.2% threshold
The analyst consensus on Applied Digital is Buy, with an average target of 61.65 dollars, a high of 90 dollars, and a low of 22 dollars; the wide range reflects differing estimates of how contracted expansion will translate into profits and cash flows. On 2026-08-03, B. Riley raised its target to 75 dollars from 66 dollars, above the consensus average. However, the consensus average fell on 2026-10-08 to 61.65 dollars compared with 72.36 dollars in the 2026-08-30 analysis, illustrating that one firm's target increase does not represent the direction of the overall consensus. EL7's valuation pillar, which measures relative valuation within the industry, ranks 124 out of 130 with a score of 8 out of 100 for the period ending 2026-05-31.
Figures in the text are as of 2026-10-08; the live price is shown at the top of the page.
Applied Digital generates revenue from leasing high-performance computing data centers, tenant fit-outs, and mining hosting, in addition to the operations of ChronoScale, in which it retains 96% ownership following its spin-off in May 2026. The mining hosting business provides powered space at two sites in North Dakota. Management explained on the 2026-07-27 call that payments are tied to the capacity provided as long as customers continue mining, rather than being tied directly to the price of Bitcoin, but continued customer activity remains a condition for these payments to continue.
Revenue reached 293.9 million dollars in quarter 4 of fiscal year 2026 (ending 2026-05), representing year-over-year growth of 475.4%. Gross margin improved to 37.6% compared with -6.1% in quarter 4 of fiscal year 2025 (ending 2025-05). However, operating margin remained at -48.2% and net income at -85.2 million dollars in quarter 4 of fiscal year 2026, so the growth demonstrates an expansion of operations without demonstrating that profitability has been achieved.
Polaris Forge 1 reached operational capacity of 250 megawatts on 2026-10-01 after an additional 75 megawatts came online. The Finland agreement announced on 2026-10-06 provides access to 1 gigawatt of power for the company's first data center development outside the United States. The significance of the two steps differs, because Polaris Forge 1 represents operational capacity, while Finland provides a resource for developing new capacity that requires conversion into facilities, contracts, and execution.
Total debt reached 5.1 billion dollars against cash and investments of 1.6 billion dollars in quarter 4 of fiscal year 2026 (ending 2026-05). Free cash flow was -2.8 billion dollars over the last 12 months through 2026-05-31, highlighting the scale of financing required for construction. The diluted share count also rose to 285.7 million shares from 201.2 million shares in quarter 4 of fiscal year 2025 (ending 2025-05), an increase of 42.0%, and stock-based compensation reached 220.1 million dollars over the last 12 months through 2026-05-31. Macquarie's arrangement to fund three-quarters of the equity required for the projects, as explained by management on 2026-07-27, provides an additional financing channel, but it does not eliminate existing debt or the effect of the increase in the share count.
The 36 billion dollars represents contracted long-term lease value, rather than revenue for a single year, and management announced it on the 2026-07-27 call across 5 campuses with contracted capacity of 1.41 gigawatts. Revenue for fiscal year 2026 (ending 2026-05) is 611.3 million dollars, which is a different measure from value extending over the duration of the contracts. Approximately 20 billion dollars of those contracts is associated with one customer at Delta Forge 1, Polaris Forge 3, and Delta Forge 2, so realizing the revenue depends on delivering and operating the facilities and meeting service levels, with customer concentration remaining a material factor.