Applied Digital (APLD) Stock: Q2 Earnings Beat Sends Shares Higher

TLDR

• Applied Digital (APLD) beat Q2 FY2026 earnings estimates with $0.00 EPS versus expected -$0.12 per share loss
• Revenue jumped 98.2% year-over-year to $126.59 million, crushing analyst expectations of $85.34 million
• The company signed leases with two hyperscalers across two North Dakota campuses
• APLD stock rose 5.5% in after-hours trading following the earnings announcement
• Analysts maintain a Strong Buy rating with an average price target of $42.90, implying 45.1% upside potential

Applied Digital Corporation reported second-quarter results that sent shares climbing in after-hours trading. The AI data center company delivered earnings per share of $0.00, beating the analyst consensus estimate calling for a loss of $0.12 per share.

Applied Digital Corporation, APLD

Revenue came in at $126.59 million for the quarter ending November 30. That’s a 98.2% jump from the same period last year. Analysts had expected revenue of just $85.34 million, making the beat even more impressive.

The stock jumped 5.5% in extended trading as investors digested the better-than-expected numbers. Wall Street has been watching Applied Digital closely as demand for AI data center capacity continues to grow.

Applied Digital announced it signed leases with two hyperscalers across two campuses in North Dakota. The deals mark a strategic expansion in the Dakotas region.

New Deals in the Pipeline

The company is in advanced discussions with another investment-grade hyperscaler. These talks cover multiple regions including more locations in the Dakotas and select southern U.S. markets.

The company reported revenue growth of 250% year-over-year on an adjusted basis. This growth rate shows the accelerating demand for AI infrastructure.

Applied Digital hosted a conference call at 5 p.m. EST to discuss the quarterly results. The call gave investors and analysts a chance to hear more details about the company’s performance and outlook.

Analyst Expectations

Wall Street analysts maintain a Strong Buy consensus rating on APLD stock. Out of 11 analysts covering the stock, all 11 have Buy ratings with zero Hold or Sell ratings.

The average price target sits at $42.90 per share. This represents potential upside of 45.1% from current levels. Analysts will likely update their price targets and estimates following the earnings beat.

The quarter ending November 30 marked the second quarter of Applied Digital’s fiscal year 2026. The company broke even on an adjusted per-share basis during the period.

Applied Digital’s ability to secure multiple hyperscaler deals positions the company as a key player in AI infrastructure. The North Dakota campuses give the company a foothold in a region attractive to large cloud providers.

The company emphasized its proven track record of executing technically complex data center construction projects. This capability helped win the hyperscaler contracts.

Applied Digital signed the hyperscaler leases across two separate North Dakota campuses, expanding its geographic footprint in the region.

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