Applied Digital Q1 revenue more than quadruples on fit-out services

By Elias Schisgall Applied Digital reported a wider loss despite a more than fourfold revenue increase in the fiscal first quarter, driven by continued compute demand from artificial-intelligence hyperscalers. The data-center company on Wednesday reported a loss from continuing operations of $221 million, or 76 cents a share, in the quarter ended Aug. 31. That compares with a loss of $18.5 million, or 7 cents a share, a year earlier. Stripping out certain one-time items, Applied Digital reported an adjusted loss of 1 cent a share. Analysts polled by FactSet were expecting an adjusted loss of 29 cents a share. Revenue grew to $341.9 million from $80.9 million a year prior. Analysts were expecting $116.3 million in revenue. The company's high-performance computing hosting business brought in $262.6 million in revenue during the quarter. The data center hosting business, which primarily serves cryptocurrency mining customers, generated $37.8 million in revenue, about flat year-over-year. "We are building for the long term, with a clear focus on developing large-scale, sustainable AI factory campuses and securing durable, high-quality, long-term contracts with proven, tier-one, investment grade hyperscalers that are leaders in the AI industry," Chief Executive Wes Cummins said. Shares of Applied Digital rose 2.1% to $24.32 in after-hours trading on Wednesday. Write to Elias Schisgall at elias.schisgall@wsj.com (END) Dow Jones Newswires October 07, 2026 16:55 ET (20:55 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.