Applied Digital beats Q4 EPS estimates, reports 406% revenue growth

Applied Digital had a quarter that most infrastructure companies would frame and hang on the wall. The Nasdaq-listed firm posted Q4 fiscal 2026 revenue of $258.7 million, a 407% jump year-over-year, while delivering adjusted earnings of $0.04 per diluted share. Both figures cleared Wall Street estimates, and the company’s full-year numbers were equally striking: $611.3 million in revenue, up 167% compared to the prior year. What’s actually driving the numbers The engine behind the revenue surge is the company’s HPC and AI data center segment, which has been scaled aggressively to meet institutional demand for compute infrastructure. Applied Digital recently signed three 15-year take-or-pay lease agreements with a single investment-grade hyperscaler, a deal package worth roughly $20 billion covering 810 MW of capacity. Take-or-pay contracts are worth explaining here. In plain terms, the tenant commits to paying whether they use the capacity or not. Think of it as a gym membership for data centers, except the membership costs billions of dollars and the tenant is one of the largest technology companies on earth. The contracted portfolio now sits at approximately 1.4 GW of capacity, t...