TLDR
- Applied Digital (APLD) exceeded Q2 FY2026 earnings forecasts by reporting $0.00 EPS, compared to an anticipated loss of $0.12 per share.
- Revenue surged 98.2% year-over-year to $126.59 million, significantly surpassing analyst projections of $85.34 million.
- The company entered into lease agreements with two hyperscalers at two separate campuses in North Dakota.
- APLD shares increased by 5.5% in after-hours trading after the earnings report was released.
- Analysts reaffirm a Strong Buy recommendation, with an average price target of $42.90, indicating a 45.1% potential gain.
Applied Digital Corporation announced second-quarter financial results that drove its share price up in after-hours trading. The AI data center firm achieved earnings per share of $0.00, outperforming the consensus analyst estimate that predicted a $0.12 per share loss.
Quarterly revenue reached $126.59 million for the period ended November 30. This figure represents a 98.2% increase compared to the same quarter in the previous year. The result was substantially higher than the $85.34 million revenue analysts had forecast.
The stock climbed 5.5% in post-market trading as the market responded to the strong performance. Wall Street’s focus on Applied Digital has intensified alongside the rising demand for AI data center capacity.
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— The Earnings Correspondent (@earnings_guy)
announced it has secured leases with two hyperscalers at two of its North Dakota campuses. These agreements signify a strategic expansion of its operations within the Dakotas region.
CEO Wes Cummins elaborated on the company’s strategic position in the area. “The Dakotas offer an attractive location for hyperscalers because of the cool climate and plentiful energy resources,” Cummins stated. He highlighted Applied Digital’s first-mover status and its proficiency in managing complex data center construction.
New Deals in the Pipeline
The company is engaged in advanced negotiations with an additional investment-grade hyperscaler. These discussions involve potential sites in multiple regions, including further locations in the Dakotas and certain markets in the southern United States.
Cummins observed that interest from potential clients has risen significantly since the initial two hyperscaler deals were finalized. “We are confident in our readiness to commence construction on these new sites in the near future,” he added.
On an adjusted basis, the company posted a 250% year-over-year revenue growth. This accelerated growth rate underscores the rapidly increasing demand for AI infrastructure.
Applied Digital held a conference call at 5 p.m. Eastern Standard Time to review the quarterly performance. The call provided an opportunity for investors and analysts to gain further insight into the company’s results and future prospects.
Analyst Expectations
Wall Street analysts continue to hold a Strong Buy consensus rating for APLD stock. Among the 11 analysts following the stock, all 11 recommend a Buy, with no Hold or Sell ratings.
The average price target is $42.90 per share. This suggests a potential increase of 45.1% from the current price. Analysts are expected to revise their targets and forecasts following the stronger-than-expected earnings.
The quarter ending November 30 was the second quarter of the company’s 2026 fiscal year. Applied Digital reached a break-even point on an adjusted per-share basis for this period.
Securing multiple hyperscaler agreements establishes Applied Digital as a significant contributor to AI infrastructure. The North Dakota campuses provide the company with a strategic presence in a region that is appealing to major cloud providers.
The company stressed its established expertise in delivering technically sophisticated data center construction projects. This competency was instrumental in securing the hyperscaler contracts.
Applied Digital finalized the hyperscaler leases for two distinct campuses in North Dakota, thereby broadening its regional footprint.
