Applied Digital Corporation
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.38%.
Did APLD Beat Earnings? Q2 2026 Results
Applied Digital delivered a blowout fiscal Q2 2026, with revenue nearly doubling year-over-year — up 98.2% to $126.59 million against a Wall Street consensus of just $81.21 million, a 55.88% beat that immediately reframed the company's growth trajectory. The loss per share of $0.11 also came in well ahead of the $0.2067 consensus estimate, a 46.78% positive surprise that sent analyst price targets higher and sparked renewed investor enthusiasm. The single biggest driver was the commencement of Applied Digital's HPC Hosting Business at Polaris Forge 1, where achieving Ready-for-Service on the first 100 MW building for CoreWeave generated $85 million in segment revenue alone, including $73 million from tenant fit-out activity. With a freshly signed 15-year, 200 MW hyperscaler lease at Polaris Forge 2 expected to produce roughly $5 billion in lease revenue — and total contracted capacity now at 600 MW representing approximately $16 billion in aggregate prospective revenue — management expressed confidence in exceeding its $1 billion NOI target within five years.
- Ready-for-Service achievement at Polaris Forge 1 delivering 100 MW on schedule for CoreWeave
- CoreWeave paid approximately $85 million including $73 million for tenant fit-out activities and $12 million in lease revenue
- Data Center Hosting performance improvements driving 15% YoY revenue growth
- $13.1 million gain on change in fair value of Babcock & Wilcox warrant
- $2.8 million gain on change in fair value of B&W investment
“The Dakotas represent a compelling region for hyperscalers due to their cool climate and abundant energy. We believe our first-mover advantage, combined with our proven ability to execute technically complex data center construction, positions Applied Digital with a strong competitive advantage. Having already secured two hyperscalers in the region, inbound demand has increased meaningfully. We are also in advanced discussions with another investment-grade hyperscaler across multiple regions, including additional locations in the Dakotas and select southern U.S. markets. While there can be no assurance of future contracts, we believe we are well positioned to begin construction in the near term on these new sites.”
Applied Digital CEO, on the earnings call
Forward Guidance & Outlook
Applied Digital expects to exceed its $1 billion NOI target within the next five years, supported by hyperscaler capital expenditures exceeding $400 billion annually. A second 150 MW HPC data center at Polaris Forge 1 is expected online in calendar 2026, with a third 150 MW facility anticipated in calendar 2027. Polaris Forge 2 initial capacity is anticipated in calendar 2026, with full capacity by early calendar 2027. The company is in advanced negotiations with another investment-grade hyperscaler across multiple regions. Post-quarter, it entered a development loan facility with Macquarie Equipment Capital including an initial $100 million to support development work for multiple new AI Factory campuses.
APLD YoY Financials
APLD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.