Applied Digital Lands $7.5 Billion AI Computing Contract, Shares Surge 12%

Applied Digital develops and operates purpose-built data centers for artificial intelligence, machine learning and other high-performance computing workloads. The company is benefiting as hyperscale cloud providers race to secure power and capacity for increasingly compute-intensive AI systems. Long-term leases are critical to the strategy, providing revenue visibility while supporting financing for the costly development of new campuses.

On July 27, Applied Digital reported fiscal fourth-quarter results for the period ended May 31, 2026. Revenue surged 407% to $258.7 million, beating the $95.32 million consensus, while adjusted net income reached $12.9 million and adjusted diluted earnings were $0.04 a share. The company still recorded a GAAP net loss of $110.6 million. It also signed a 15-year, take-or-pay lease for 300 MW at Polaris Forge 3, representing about $7.5 billion in base-term revenue, with operations expected to begin in 2027.