"Last quarter was legitimately impressive. Revenue hit $126.59 million against an $81.21 million consensus estimate, a 55.88% beat, and grew 98.2% year over year. The EPS loss of $0.11 came in well ahead of the $0.2067 loss estimate, a 46.78% positive surprise."
"Since then, the narrative has gotten complicated. Nvidia's complete exit of its $177 million stake in February 2026 triggered a single-day decline of 114%, and the stock has shed 24.66% over the past month, closing at $20.55 on March 30."
"The biggest shift heading into Q3 is the revenue mix. Last quarter's HPC Hosting number was inflated by a $73 million one-time tenant fit-out payment from CoreWeave, with only $12 million coming from recurring lease revenue."
Applied Digital Corp is set to report its fiscal Q3 2026 results on April 8. The stock has dropped 30.5% since Q2 earnings, necessitating a strong performance. Last quarter, revenue reached $126.59 million, exceeding estimates by 55.88%, while the EPS loss was better than expected. However, Nvidia's exit from its stake caused a significant stock decline. The company recently issued $2.15 billion in senior secured notes to finance IT load at Polaris Forge 2, adding to its existing debt burden. The upcoming report will reveal the impact of revenue shifts from one-time payments to steady lease income.
Read at 24/7 Wall St.
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