A Glimpse of Applied Digital's Earnings Potential

Applied Digital (NASDAQ:APLD) is set to give its latest quarterly earnings report on Wednesday, 2026-01-07. Here's what investors need to know before the announcement.

Analysts estimate that Applied Digital will report an earnings per share (EPS) of $-0.17.

Applied Digital bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

The company's EPS beat by $0.11 in the last quarter, leading to a 16.05% increase in the share price on the following day.

Here's a look at Applied Digital's past performance and the resulting price change:

Quarter	Q1 2026	Q4 2025	Q3 2025	Q2 2025
EPS Estimate	-0.14	-0.14	-0.10	-0.14
EPS Actual	-0.03	-0.03	-0.08	-0.06
Price Change %	16.00	31.00	-36.00	-2.00

Applied Digital Share Price Analysis

Shares of Applied Digital were trading at $30.2 as of January 05. Over the last 52-week period, shares are up 246.93%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Applied Digital

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Applied Digital.

Applied Digital has received a total of 10 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $39.5, the consensus suggests a potential 30.79% upside.

Comparing Ratings Among Industry Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of and Akamai Technologies, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Akamai Technologies, with an average 1-year price target of $97.89, suggesting a potential 224.14% upside.

Peer Analysis Summary

The peer analysis summary presents essential metrics for and Akamai Technologies, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Applied Digital	Buy	84.27%	$8.61M	-2.40%
Akamai Technologies	Neutral	4.97%	$625.10M	3.05%

Key Takeaway:

Applied Digital is positioned favorably compared to its peers in terms of revenue growth, with a significantly higher percentage. However, its gross profit margin is lower than the average of its peers. The company's return on equity is negative, indicating a lower performance in this aspect compared to its peers.

Get to Know Applied Digital Better

Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.

A Deep Dive into Applied Digital's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Applied Digital displayed positive results in 3 months. As of 31 August, 2025, the company achieved a solid revenue growth rate of approximately 84.27%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Applied Digital's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -28.81%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Applied Digital's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -2.4%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Applied Digital's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.87%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Applied Digital's debt-to-equity ratio is below the industry average. With a ratio of 0.67, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Applied Digital visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.