Applied Digital (NASDAQ:APLD) Exceeds Q1 2027 Earnings Estimates Amidst AI Data Center Expansion

• Applied Digital (NASDAQ:APLD) reported fiscal Q1 2027 earnings per share of -$0.01, significantly beating estimates of -$0.30.
• Revenue surged 322% year-over-year to $341.90 million, though the company faces concerns over past earnings misses and rising costs.
• The company is expanding internationally, securing access to up to 1 gigawatt of power capacity in Finland for a new AI data center campus.

Applied Digital develops data centers for AI computing. Its fiscal first-quarter 2027 results, for the period ended August 31, 2026, show earnings per share of -$0.01, better than the estimated -$0.30. Earnings per share measures profit or loss divided by the number of shares.

Revenue from continuing operations reaches $341.90 million, above the $116.30 million estimate provided. That is a 322% increase from a year earlier. The company includes results from its majority-owned ChronoScale computing platform in its financial statements, but excludes them from the adjusted, or non-GAAP, measures cited in its release.

The results stand out against recent performance. As highlighted by Zacks Investment Research, Applied Digital missed earnings estimates in three of the previous four quarters and matched them once. The stock has fallen 19.6% over the past three months, while interest costs and spending on AI campuses under construction remain concerns.

Applied Digital is also planning its first development outside the United States. It has secured access to up to 1 gigawatt of potential power capacity in Finland for an AI data center campus, with initial power expected in 2028. Its near-term development priorities remain in the United States.