Applied Digital (APLD) has seen a 35.6% decline in its share price over the past three months, significantly underperforming the broader Zacks Finance sector, which gained 8%, and the Financial – Miscellaneous Services industry, which increased by 5.6%. In comparison, peers such as IREN Limited, Marathon Digital, and Riot Platforms reported smaller losses of 24.5%, 17.9%, and 15.2%, respectively.
As of May 31, 2026, APLD reported $5.31 billion in scheduled debt obligations and $1.78 billion in estimated interest payments. The company’s aggressive expansion into AI data centers led to capital expenditures soaring to $2.87 billion in fiscal 2026, up from $681.6 million the previous year. Furthermore, APLD’s projected revenues from contracted leases show minimal income of $451.1 million expected in fiscal 2027, with substantial revenue generation not anticipated until fiscal 2028 and beyond.
Analysts are now forecasting a first-quarter fiscal 2027 loss of 26 cents per share for APLD, a decrease of 53% over the past month. Investors are advised to exercise caution, as APLD’s reliance on heavy debt financing, alongside equity financing that resulted in the sale of approximately 15.3 million shares for $196.4 million, suggests potential further shareholder dilution. Currently, APLD carries a Zacks Rank #5 (Strong Sell).
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