APLD Stock Dips After-Hours On Debt Concerns Despite Q3 Revenue Beat

• Applied Digital reported quarterly revenue of $126.6 million, up 139% from the prior year comparable period, and ahead of Street expectations of $78.47 million.
• The company also posted a net loss per share of $0.36, compared to $0.16 per share posted in the same period of last year. 
• Most recently, Applied Digital completed a $2.15 billion private offering of 6.750% Senior Secured Notes due 2031, issued at 98% of par, to support the Polaris Forge 2 campus.

Shares of Applied Digital Corp. (APLD) slipped more than 4.5% in Wednesday’s extended trading hours after the company posted third-quarter (Q3) 2026 results.

While the data center company reported quarterly revenue of $126.6 million, up 139% from the prior year comparable period and ahead of Wall Street expectations of $78.47 million, according to data from Fiscal.ai, its soaring debt and operating expenses spooked investors.

Applied Digital reported long-term debt of about $2.7 billion, although the company said that it is aiming to lower the cost of its project-level debt.

Earnings Snapshot

Applied Digital also posted net loss per share of $0.36, compared to $0.16 per share posted in the same period of last year.

“We are seeing a clear acceleration in demand for high-performance AI data center capacity, with hyperscalers as aggressive as we have ever seen them,” said CEO Wes Cummins.

Noting the increased capital expenditures from the largest U.S. hyperscalers, which is expected to be around $700 billion, Cummins said, “We believe these enormous investments highlight the intense pressure on power and infrastructure and that these trends will only increase the long-term value of our high-quality, lower-cost sites like those we operate today.”

Debt Reduction Plans    

The company said that over time, it will be able to further reduce its overall cost and long-term debt as its data centers become stabilized, cash-flowing assets.

Most recently, Applied Digital completed a $2.15 billion private offering of 6.750% Senior Secured Notes due 2031, issued at 98% of par, to support the Polaris Forge 2 campus. The company also secured meaningful credit enhancements on its CoreWeave leases at Polaris Forge 1.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around APLD stock stayed in the ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.

One user dismissed the selloff, stating that revenue was more important than capital expenditures.

Another bullish user noted the strong performance of AI, predicting that the company’s shares would surge over $80 this year, and perhaps reach triple-digits next year. APLD shares were trading around $27.79 at the time of writing.

APLD stock has soared about 447% in the past year.

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