Q2 EPS Forecast for Applied Digital Reduced by Analyst

Applied Digital Corporation (NASDAQ:APLD) – Equities research analysts at Northland Securities dropped their Q2 2027 earnings estimates for Applied Digital in a report issued on Wednesday, October 7th. Northland Securities analyst M. Grondahl now anticipates that the company will earn ($0.25) per share for the quarter, down from their prior estimate of ($0.09). Northland Securities has an “Outperform” rating and a $82.00 price objective on the stock. The consensus estimate for Applied Digital’s current full-year earnings is ($1.09) per share. Northland Securities also issued estimates for Applied Digital’s Q3 2027 earnings at ($0.24) EPS, Q4 2027 earnings at ($0.20) EPS and FY2027 earnings at ($1.50) EPS.

A number of other equities analysts have also recently commented on APLD. Rothschild & Co Redburn set a $22.00 target price on Applied Digital and gave the stock a “neutral” rating in a report on Monday, September 21st. Wells Fargo & Company reiterated an “overweight” rating and set a $55.00 target price (up from $50.00) on shares of Applied Digital in a research report on Thursday. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Digital in a report on Tuesday, July 21st. Citigroup restated a “market outperform” rating on shares of Applied Digital in a research report on Thursday. Finally, Wall Street Zen cut Applied Digital from a “sell” rating to a “strong sell” rating in a research report on Sunday, August 30th. Three analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Applied Digital has an average rating of “Moderate Buy” and a consensus target price of $62.25.

Applied Digital Trading Down 1.8%

Shares of APLD stock opened at $23.25 on Tuesday. The company has a debt-to-equity ratio of 3.90, a current ratio of 2.56 and a quick ratio of 2.56. The company has a market cap of $7.03 billion, a price-to-earnings ratio of -14.18 and a beta of 5.99. Applied Digital has a 1 year low of $19.00 and a 1 year high of $50.72. The firm has a fifty day moving average price of $26.87 and a 200-day moving average price of $32.48.

Applied Digital (NASDAQ:APLD) last released its quarterly earnings results on Wednesday, October 7th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.30) by $0.29. The business had revenue of $300.39 million for the quarter, compared to the consensus estimate of $116.29 million. Applied Digital had a negative net margin of 51.28% and a negative return on equity of 27.21%. The company’s quarterly revenue was up 367.8% on a year-over-year basis. During the same period last year, the firm earned ($0.03) earnings per share.

Insider Buying and Selling at Applied Digital

In related news, Director Richard Nottenburg sold 75,000 shares of Applied Digital stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $31.15, for a total transaction of $2,336,250.00. Following the transaction, the director owned 133,378 shares in the company, valued at approximately $4,154,724.70. The trade was a 35.99% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 9.50% of the company’s stock.

Institutional Investors Weigh In On Applied Digital

A number of institutional investors have recently bought and sold shares of the business. Whitaker Myers Wealth Managers LTD. purchased a new position in Applied Digital during the 2nd quarter valued at approximately $1,841,000. Cambridge Investment Research Advisors Inc. increased its stake in Applied Digital by 39.6% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 146,633 shares of the company’s stock worth $5,469,000 after acquiring an additional 41,562 shares during the last quarter. Dimensional Fund Advisors LP purchased a new stake in shares of Applied Digital during the 1st quarter worth approximately $1,970,000. Situational Awareness LP raised its holdings in shares of Applied Digital by 14.1% during the 2nd quarter. Situational Awareness LP now owns 15,384,616 shares of the company’s stock worth $574,000 after acquiring an additional 1,906,178 shares in the last quarter. Finally, TFR Capital LLC. raised its holdings in shares of Applied Digital by 425.3% during the 1st quarter. TFR Capital LLC. now owns 372,960 shares of the company’s stock worth $9,497,000 after acquiring an additional 301,954 shares in the last quarter. Hedge funds and other institutional investors own 65.67% of the company’s stock.

Key Applied Digital News

Here are the key news stories impacting Applied Digital this week:

• Positive Sentiment: Applied Digital has approximately $36 billion in contracted revenue and plans to bring more than 600 megawatts of capacity online over the next 12 months, more than double the 250 megawatts added during the prior year. The commitments support the long-term growth case for its AI data-center platform. Applied Digital Wants to Add 600 Megawatts in a Year. Can It Pay for It?
• Positive Sentiment: Recent coverage highlighted 322% year-over-year revenue growth to $341.9 million in fiscal first-quarter 2027, along with the company’s expanding AI-campus pipeline and contracted backlog. These figures reinforce the demand outlook, even though investors remain focused on execution and financing. Applied Digital Ends the Quarter With $36 Billion in Contracted Revenue as AI Moat Widens
• Neutral Sentiment: Northland Securities maintained an Outperform rating and an $82 price target, but its analyst reduced estimates for Q2, Q3 and Q4 fiscal 2027 and cut the full-year 2027 forecast to a $1.50 per-share loss from a $0.44 loss. The combination suggests long-term confidence but weaker near-term profitability expectations.
• Negative Sentiment: The central concern is how Applied Digital will finance the construction of data centers before tenants begin paying. Coverage points to heavy capital requirements, a debt-to-equity ratio of 3.90 and widening losses, creating dilution, refinancing and execution risks despite the large contracted-revenue figure. What Could Derail Applied Digital Stock?
• Negative Sentiment: Analyst commentary also emphasized that soaring AI infrastructure revenue is being offset by widening losses and substantial debt. With negative earnings and an expected current-year loss, investors appear to be applying a discount until the company demonstrates that its expansion can generate sustainable cash flow. Should Investors Hold or Fold APLD Stock After Its Q1 Earnings Miss?

About Applied Digital

Applied Digital Corporation (NASDAQ: APLD) develops and operates digital infrastructure designed to support high-performance computing, artificial intelligence and other data-intensive applications. The company provides data-center capacity and related services to customers that require substantial computing power and electricity.

The company’s business has included hosting infrastructure for cryptocurrency-mining operations and, increasingly, developing facilities for artificial intelligence and high-performance computing workloads.