Applied Digital Inc. Reports Spectacular Growth in Fiscal Third Quarter 2026

These adjusted figures, which exclude the results of the Cloud Services Business, showcase the company's core operations more clearly and reflect the strong performance of its data center segments.

Applied Digital has recently broken ground on Delta Forge 1, a massive 430 MW AI Factory campus located in a strategic southern U.S. market. This facility is projected to deliver 300 MW of critical IT load for high-density AI workloads, with operations expected to commence in mid-2027.

In addition, Applied Digital secured a $100 million DevCo Facility with Macquarie Equipment Capital to fund initial sourcing, planning, and construction costs for new data center projects.

The company also announced the appointment of co-founder Jason Zhang as President, a move aimed at strengthening the leadership as the company scales its AI Factory platform.

Subsequent to the quarter, Applied Digital completed a $2.15 billion private offering of 6.750% Senior Secured Notes due 2031. The proceeds will primarily be used for the development and construction of 200 MW at the Polaris Forge 2 AI Factory campus in Harwood, North Dakota. Additionally, the company entered into agreements with CoreWeave to enhance the credit quality of its tenants at the Polaris Forge 1 campus.

Wes Cummins, Chairman and CEO of Applied Digital, emphasized the company's unique position in the high-performance AI data center sector. “We are among the first to recognize the surging demand for AI capacity. Our investments are starting to show results, with our first 100 MW facility now fully operational,” he stated. Cummins highlighted the strong demand from hyperscalers, noting an increase in capital expenditures from approximately $400 billion to nearly $700 billion, indicating a growing need for infrastructure.

The HPC Hosting segment saw revenues of $71.0 million, a significant driver of the overall revenue increase. The fully operational data center at Polaris Forge 1 contributed substantially to this growth, reflecting the strong performance of the company's HPC services.

In the Data Center Hosting segment, revenues totaled $37.5 million, up 7% from the previous year, driven by improved performance across facilities.

Applied Digital is also moving forward with a business combination of its Cloud Services Business with EKSO Bionics Holdings, creating ChronoScale Corporation. This combination is expected to enhance shareholder value by allowing both businesses to scale independently.

As of February 28, 2026, Applied Digital reported $2.1 billion in cash and equivalents, alongside $2.7 billion in debt. The company is focused on reducing project-level debt costs and expects further financial stabilization as data centers become cash-flowing assets.

Cummins concluded with optimism about the company’s future, stating, “We are building a world-class data center region in the Dakotas with multiple hyperscalers, laying the groundwork for a long-term revenue stream expected to exceed $1 billion in Net Operating Income within five years.”

Applied Digital Corporation's fiscal third quarter results not only reflect its robust financial and operational growth but also highlight its strategic initiatives in the rapidly expanding AI data center market. With significant investments underway and a clear vision for the future, Applied Digital is poised to enhance its market position and deliver substantial shareholder value in the coming years.

The company will host a conference call today at 5:00 PM ET to discuss these results in detail.