Applied Digital Beats Q3 Earnings Estimates

Applied Digital Corporation, a Texas-based provider of AI data centers and digital infrastructure, reported stronger-than-expected fiscal third-quarter results on Wednesday, with adjusted earnings per share of $0.09 and revenue of $126.6 million. The figures surpassed Wall Street estimates of a $0.16 per-share loss and $75.5 million in sales, marking a 139 percent year-over-year revenue increase for the period ended February 28. Despite the positive performance, the company's shares fell 5.4 percent to $26.20 by midday Thursday, after an initial 10 percent gain to $27.79 the previous day.

The earnings release highlighted robust demand for high-performance computing capacity amid the AI boom. Adjusted revenue, excluding certain passthrough items, reached $108.6 million, also beating forecasts. Executives attributed the results to contributions from fitout services and power arrangements, though these lower-margin elements drew some investor scrutiny. The stock's decline followed a broader market uptick, with the S&P 500 and Nasdaq Composite each rising 0.3 percent Thursday, suggesting the selloff stemmed from profit-taking after the pre-earnings rally rather than the results...