Applied Digital's $258.7 million quarter puts AI infrastructure in focus as IREN navigates a crypto-to-cloud shift
The revenue trajectories for Applied Digital (NASDAQ: APLD) and IREN (NASDAQ: IREN) are moving in opposite directions, and the spread between them is defining the setup for both names. APLD's quarter ended May 31, 2026…
Key takeaways
- Applied Digital (NASDAQ: APLD) reported $258.7 million in revenue for the quarter ended May 31, 2026, up from a $38.0 million trough in the quarter ended May 31, 2025.
- IREN (NASDAQ: IREN) peaked at $240.3 million in the quarter ended September 30, 2025, then contracted to $137.2 million for the quarter ended June 30, 2026.
- Applied Digital operates as a landlord to AI companies, leasing digital infrastructure campuses while tenants outfit and pay for the hardware.
- IREN is exiting cryptocurrency mining to focus on AI cloud infrastructure, with AI cloud revenue rising to $70.5 million and crypto mining falling to $66.7 million for the quarter ended June 30, 2026.
- Applied Digital's operating margin was -45% and IREN's was -452% for their respective quarters, reflecting ongoing buildout and integration costs.
The revenue trajectories for Applied Digital (NASDAQ: APLD) and IREN (NASDAQ: IREN) are moving in opposite directions, and the spread between them is defining the setup for both names. APLD's quarter ended May 31, 2026, printed $258.7 million, capping an acceleration from a $38.0 million trough in the quarter ended May 31, 2025. IREN, over the same window, peaked at $240.3 million in the quarter ended September 30, 2025, and has since contracted sequentially to $137.2 million for the quarter ended June 30, 2026.
The numbers, broken down
Applied Digital operates centralized digital infrastructure campuses across North America, positioning itself as a landlord to AI companies rather than an AI operator. Tenants sign leases, absorb the cost of outfitting data centers with hardware, and Applied Digital collects the revenue. The company recently signed an additional facility lease and secured supplemental credit financing for ongoing construction. Operating margin remained at -45% for the quarter ended May 31, 2026, a reflection of a buildout still in motion, but the top line has broken decisively higher.
IREN's sequential contraction reflects composition, not collapse. The company has been exiting high-volume cryptocurrency mining to concentrate on AI cloud infrastructure. Crypto mining revenue fell to $66.7 million in the fiscal fourth quarter ended June 30, 2026, from $111.2 million in the same period a year earlier. AI cloud revenue climbed to $70.5 million from $33.6 million over that same year-on-year comparison. During the period, IREN integrated a newly acquired European data center developer and closed the purchase of cloud software provider Mirantis. Those integration expenses help explain an operating margin of -452% for the quarter ended June 30, 2026.
What to watch
For APLD, the question is whether new lease agreements sustain revenue at or above the $258.7 million print. The model depends on converting construction capital into signed tenant income, and the fiscal fourth quarter ended May 31, 2026, suggests that conversion is gaining speed. For IREN, the number to track is AI cloud revenue as a share of total. At $70.5 million against $137.2 million in overall revenue for the quarter ended June 30, 2026, AI cloud already accounts for more than what the company earned from crypto mining, which came in at $66.7 million.
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Filed via finance.yahoo.com