Net margin is calculated as Net Income divided by its Revenue. Applied Digital's Net Income for the
three
months ended in Feb. 2026 was CHF-99.3 Mil. Applied Digital's Revenue for the
three
months ended in Feb. 2026 was CHF126.6 Mil. Therefore, Applied Digital's net margin for the quarter that ended in Feb. 2026 was -78.42%.
The historical rank and industry rank for Applied Digital's Net Margin % or its related term are showing as below:
XSWX:APLD'
s Net Margin % Range Over the Past 10 Years
Min: -975.07 Med: -134.76 Max: -42.65
Current: -65.56
XSWX:APLD's Net Margin % is ranked worse than 86.05% of 2825
companies
in the Software industry
Industry Median: 2.53
vs XSWX:APLD: -65.56
Applied Digital (XSWX:APLD) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Applied Digital Net Margin % Related Terms
Applied Digital Net Margin % Historical Data
* Premium members only.
The historical data trend for Applied Digital's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, Applied Digital's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Applied Digital Net Margin % vs Software Industry
For the Software industry and Technology sector, Applied Digital's Net Margin % distribution charts can be found below:
* The bar in red indicates where Applied Digital's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Applied Digital (XSWX:APLD) has a Net Margin % of -78.42% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on Applied Digital and its competitors. According to the industry distribution chart, Applied Digital ranks #2431 out of 2825 companies in the Software industry, placing it in the top 86.1%.
Is Applied Digital's Net Margin % too high?
Applied Digital's current Net Margin % is -78.42%. Based on the distribution chart, Applied Digital ranks #2431 out of 2825 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Applied Digital has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Net Margin % compare to ?
According to the Software industry distribution chart, Applied Digital ranks #2431 out of 2825 companies for Net Margin %. This places Applied Digital in the lower half of its industry. The industry median Net Margin % is 2.53. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.53, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Applied Digital and its competitors. For the Software industry, the median Net Margin % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital's current Net Margin % is -78.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Applied Digital (XSWX:APLD) has a current Net Margin % of -78.42%. The stock's GF Value™ is CHF11.40, compared to a current price of CHF27.30 — trading 139.5% above its estimated fair value. The current Net Margin % is -78.42%. Applied Digital's overall GF Score™ is 38/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Applied Digital (XSWX:APLD), the current Net Margin % is -78.42% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Digital (XSWX:APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of CHF27.30 is trading 139.5% above its estimated GF Value™ of CHF11.40.
Key valuation signals for XSWX:APLD:
Net Margin %: -78.42%
GF Value™: CHF11.40 vs. price of CHF27.30 (139.5% above fair value)
No single metric tells the full story. See the XSWX:APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
38GF Score
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