Applied Digital (APLD) Stock: Earnings Beat as Hyperscaler Deals Drive Strong Quarter

TLDR

• Applied Digital (APLD) earnings beat expectations with $0.00 EPS versus projected -$0.12 loss
• APLD revenue surged 98.2% to $126.59 million, crushing $85.34 million estimate
• Company secured two hyperscaler leases across North Dakota data center campuses
• APLD stock climbed 5.5% after hours on strong Q2 fiscal 2026 results
• Wall Street analysts rate APLD Strong Buy with $42.90 average price target

Applied Digital Corporation posted second-quarter earnings that beat Wall Street estimates. The AI data center company reported earnings per share of $0.00, crushing analyst expectations of a -$0.12 per share loss.

APLD revenue reached $126.59 million for the quarter ending November 30. That represents a 98.2% increase from the prior year period. Analysts had forecast revenue of just $85.34 million.

APLD stock jumped 5.5% in after-hours trading following the earnings announcement. Investors responded positively to the revenue beat and new customer wins.

Applied Digital Corporation, APLD

The company announced lease agreements with two hyperscalers across two North Dakota campuses. These deals expand Applied Digital’s footprint in a region attractive to large cloud providers.

CEO Wes Cummins highlighted the company’s regional advantages. “The Dakotas represent a compelling region for hyperscalers due to their cool climate and abundant energy,” Cummins stated.

APLD Stock Analysis and Price Target

Wall Street maintains a Strong Buy consensus rating on APLD stock. All 11 analysts covering the stock have Buy ratings with no Hold or Sell ratings.

The average APLD price target stands at $42.90 per share. This implies 45.1% upside potential from current levels. Analysts will likely revise estimates following the earnings beat.

Applied Digital reported 250% year-over-year revenue growth on an adjusted basis. The company broke even on an adjusted per-share basis during the quarter.

APLD Hyperscaler Deals Drive Growth

Cummins noted increasing demand after landing the initial hyperscaler contracts. “Having already secured two hyperscalers in the region, inbound demand has increased meaningfully,” he said.

The company is in advanced talks with another investment-grade hyperscaler. Discussions 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 emphasized Applied Digital’s first-mover advantage and execution capabilities.

Applied Digital hosted an earnings conference call at 5 p.m. EST. Management provided additional details on quarterly performance and future outlook.

The North Dakota campuses give Applied Digital strategic positioning in AI infrastructure. The region’s cool climate and energy resources appeal to hyperscale customers.

Applied Digital’s ability to execute complex data center construction helped secure the hyperscaler leases. The company emphasized its proven track record in technical project delivery.

APLD revenue of $126.59 million represented a $41.25 million beat versus estimates. The earnings surprise marked one of the larger beats in the AI infrastructure sector.

The quarter ending November 30 was the second quarter of Applied Digital’s fiscal year 2026. The company continues to expand its hyperscaler customer base across multiple regions.