Applied Digital Faces Revenue Drop on October 7, But Rental Income Growth Is Key for APLD Investors

Applied Digital (APLD) will report first-quarter fiscal 2027 results on Oct. 7, with analysts expecting revenue of approximately $135 million — roughly half the $258.7 million reported last quarter. The decline is largely due to timing of tenant fit-out payments, lump-sum charges for customizing data centers that inflated prior-period results. Investors should focus on rental revenue instead. Data-center rental and related revenue reached $50.6 million in Q4 fiscal 2026 as the first building at the Polaris Forge 1 campus ran for a full quarter. With 175 megawatts now live, that figure should keep climbing. The company has signed about $36 billion in long-term leases across five campuses. Wells Fargo estimates those contracts alone are worth about $30 per share. APLD stock has roughly halved from its 52-week high of $50.72 in late May 2026. CEO Wes Cummins said last quarter that Applied Digital was in advanced talks with two existing customers for expansions adding about 100 MW and 150 MW at higher lease rates. Signing those deals or providing a firm update will likely determine where APLD stock moves post-earnings. Management's $1 billion net operating income run-rate target also bears watching.