TLDR
- Applied Digital (APLD) stock rose 5.5% after Q2 earnings beat with $0.00 EPS versus expected -$0.12 loss
- APLD revenue jumped 98.2% year-over-year to $126.59 million, beating $85.34 million estimate
- Company signed hyperscaler leases across two North Dakota data center campuses
- Analysts maintain Strong Buy rating on APLD stock with $42.90 average price target
- Applied Digital is in advanced discussions with another investment-grade hyperscaler across multiple regions
Applied Digital Corporation reported second-quarter fiscal 2026 earnings that crushed Wall Street expectations. APLD stock climbed 5.5% in after-hours trading on the results.
The AI data center company posted earnings per share of $0.00. Analysts had forecast a loss of -$0.12 per share. The earnings surprise marked a turnaround from expected losses.
APLD revenue reached $126.59 million for the quarter ending November 30. That represents a 98.2% increase from the same period last year. Wall Street had projected revenue of just $85.34 million.
Applied Digital Corporation, APLD
The company announced lease agreements with two hyperscalers across two North Dakota campuses. These deals expand Applied Digital’s presence in the region.
CEO Wes Cummins explained the company’s strategy. “The Dakotas represent a compelling region for hyperscalers due to their cool climate and abundant energy,” Cummins said.
APLD Stock Price Target and Analyst Ratings
Wall Street analysts rate APLD stock a Strong Buy. All 11 analysts covering the company have Buy ratings with zero Hold or Sell ratings.
The average APLD stock price target stands at $42.90 per share. This implies 45.1% upside from current levels. Analysts will likely update their targets following the earnings beat.
Applied Digital reported 250% year-over-year revenue growth on an adjusted basis. The company broke even on an adjusted earnings per share basis during the quarter.
Cummins highlighted increasing customer interest. “Having already secured two hyperscalers in the region, inbound demand has increased meaningfully,” he stated.
Applied Digital Hyperscaler Pipeline Expands
The company is in advanced discussions with another investment-grade hyperscaler. These talks cover multiple regions including more Dakota locations and southern U.S. markets.
“We believe we are well positioned to begin construction in the near term on these new sites,” Cummins added. The CEO pointed to Applied Digital’s first-mover advantage in the region.
Applied Digital hosted an earnings conference call at 5 p.m. EST. Management provided details on quarterly performance and customer pipeline.
The APLD revenue of $126.59 million beat estimates by $41.25 million. This ranks among the larger earnings surprises in the AI infrastructure sector.
The North Dakota campuses position Applied Digital in a region attractive to hyperscale cloud providers. Cool climate and abundant energy resources appeal to these large customers.
Applied Digital’s track record executing complex data center construction helped win the hyperscaler contracts. The company emphasized its technical capabilities and regional expertise.
APLD stock broke even on adjusted earnings versus analyst expectations of a -$0.12 per share loss. The quarter ending November 30 marked the second quarter of fiscal year 2026.
