Applied Digital Reports $126.6M Q2 Revenue, Beats Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Should l Buy APLD?
Source: Benzinga
- Revenue Beat: Applied Digital reported Q2 revenue of $126.6 million, a 249% increase from $36.2 million a year ago, not only surpassing expectations of a 10-cent loss but also highlighting strong demand in HPC and data center hosting sectors.
- HPC Revenue Surge: The company generated $85 million in HPC hosting revenue, indicating rising demand particularly from hyperscalers in the Dakotas, which further solidifies its market position in high-performance computing.
- Innovative Eyewear Sales Growth: Innovative Eyewear's preliminary Q4 sales reached approximately $1 million, a 45% year-over-year increase, with full-year 2025 revenue projected at $2.7 million, a 65% rise, showcasing its strong competitive edge in the Amazon smart safety glasses market.
- Defense Contract Approval: RTX Corporation secured a substantial $438 million contract from the FAA for next-generation air traffic radars, expected to enhance the safety and efficiency of the U.S. National Airspace System, thereby driving further growth in the defense sector.
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Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 23.760
Low
36.00
Averages
52.22
High
99.00
Current: 23.760
Low
36.00
Averages
52.22
High
99.00
About APLD
Applied Digital Corporation is a designer, builder, and operator of sustainably engineered data centers and colocation services for artificial intelligence, cloud, networking, and blockchain workloads. The Company’s segments include data center hosting (Data Center Hosting Business) and high-performance compute hosting (HPC Hosting Business). The Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. Customer-owned hardware is installed in its facilities, and the Company provides operational and maintenance services for a fixed fee. Its facilities include a 106 megawatt (MW) facility in Jamestown and a 180 MW facility in Ellendale, North Dakota. The HPC Hosting Business designs, builds, and operates data centers which are designed to support high-compute applications using advanced technologies and infrastructures to provide services to customers. Its HPC data center is located at its Polaris Forge 1 campus with 100 MW capacity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
APL Digital Stock Price Target Raised to $45.27
- Analyst Price Target: Analysts covering APLD stock have set a 12-month average price target of $45.27, indicating an upside potential of approximately 120% from its closing price of $20.54, reflecting a positive market outlook.
- Rating Maintained: Roth Capital maintained a ‘Buy’ rating on APLD shares last month with a price target of $58, despite Nvidia's exit from the company, suggesting analysts remain confident in the company's fundamentals.
- Earnings Expectations: The data center company is expected to report its Q3 2026 earnings on April 8, with Wall Street forecasting revenue of $78.47 million for the quarter, representing a year-on-year increase of about 48%, indicating strong growth momentum.
- Market Sentiment Shift: APLD stock saw a significant spike in message volume on Stocktwits, increasing by about 63% in 24 hours, with user sentiment shifting from ‘neutral’ to ‘bullish’, reflecting growing investor confidence in the stock.
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Sonoco and Applied Digital See Active Options Trading
- Sonoco Options Volume: Sonoco Products Co. recorded options trading of 5,675 contracts, equating to approximately 567,500 shares, which represents about 65.6% of its average daily trading volume of 864,955 shares over the past month, indicating heightened market interest in its future performance.
- High Call Option Activity: Notably, the $60 strike call option expiring on May 15, 2026, saw 2,780 contracts traded today, representing around 278,000 underlying shares, suggesting that investors are increasingly optimistic about Sonoco's stock price appreciation.
- Applied Digital Options Dynamics: Applied Digital Corporation's options trading reached 102,143 contracts, translating to approximately 10.2 million shares, which accounts for 65.2% of its average daily trading volume of 15.7 million shares over the past month, reflecting active market interest in its stock.
- Bullish Call Option Trends: Particularly, the $24 strike call option expiring on April 2, 2026, recorded 5,025 contracts traded today, representing about 502,500 underlying shares, indicating strong investor confidence in Applied Digital's future growth prospects.
See More
Applied Digital Stock Soars 286% Over Past Year, Attracts Attention
- Stock Performance: As of March 23, Applied Digital's stock has surged 286% over the past year, nearly quadrupling in value, indicating strong market performance and significant investor interest.
- Market Value and Financing Plans: The company currently has a market value of approximately $7.5 billion and plans to borrow around $2.15 billion to build its Polaris Forge 2 AI campus, demonstrating strong confidence in future growth and commitment to infrastructure investment.
- Financial Status: In its latest earnings report, Applied Digital reported a 250% year-over-year revenue increase to $126.6 million in the second quarter, despite a net loss of $31.2 million, which is smaller than the previous year's loss, indicating signs of business improvement.
- Business Restructuring Impact: The company plans to spin off its cloud computing business and merge it with EKSO Bionics Holdings to create a new entity called ChronoScale, which may throttle near-term revenue growth but will help stabilize margins, reflecting a long-term strategic vision.
See More
Applied Digital's Rapid Growth and Investment Outlook
- Stock Surge: Applied Digital's stock has nearly quadrupled in value over the past year, with a 286% increase, indicating strong market recognition of its demand in the AI and high-performance computing sectors.
- Significant Revenue Growth: The company reported a 250% year-over-year revenue increase in Q2, reaching $126.6 million, although it still faced a net loss of $31.2 million, which is smaller than the previous year's loss, suggesting potential business improvement.
- Infrastructure Investment: Applied Digital plans to borrow approximately $2.15 billion to build the Polaris Forge 2 AI campus, with a market value of around $7.5 billion, reflecting the company's strong confidence in future growth.
- Business Restructuring Impact: The company announced a spin-off of its cloud computing business to merge with EKSO Bionics Holdings, which may throttle near-term revenue growth but is expected to stabilize margins, highlighting the necessity of its strategic adjustments.
See More
Applied Digital Secures $2.15 Billion AI Financing Deal
- Significant Financing: Applied Digital has raised $2.15 billion through a high-yield bond offering to develop 200 megawatts of data center capacity at its Polaris Forge 2 facility in North Dakota, providing robust funding support for its infrastructure expansion.
- Long-Term Contract Assurance: The company has leased this capacity to Oracle for approximately 15 years, expected to generate about $5 billion in revenue, ensuring the project's sustainability and profitability.
- Substantial Market Opportunity: Management highlighted that hyperscaler spending on AI infrastructure exceeds $400 billion annually, and Applied Digital's early positioning in North Dakota allows it to leverage cost-effective energy and ample land for expansion, capturing market opportunities.
- Risks and Challenges: Despite successful financing, Applied Digital faces high execution risks and customer concentration risks, with future growth heavily reliant on timely project delivery, as any delays could adversely affect the company's overall profitability.
See More
AI Spending Surge: CoreWeave vs. Applied Digital Growth Prospects
- CoreWeave Revenue Surge: In 2025, CoreWeave's revenue skyrocketed by 168% to over $5.1 billion, reflecting strong demand in the AI cloud infrastructure market, with expectations for continued high growth in the coming years.
- Significant Customer Growth: CoreWeave added nearly twice as many long-term customers in Q4 compared to its best previous quarters, with the number of clients spending over $1 million annually increasing by nearly 150%, indicating rapid market penetration and customer base expansion.
- Applied Digital Lease Revenue Outlook: The 400-megawatt data center under development by Applied Digital is expected to generate approximately $11 billion in lease revenue over 15 years, with the first 100 megawatts already operational, showcasing its long-term revenue potential.
- Market Competition and Risks: While CoreWeave anticipates capital expenditures of $30 billion to $35 billion in 2026, potentially leading to short-term margin compression, its robust revenue growth and strong backlog make it more attractive in the coming years.
See More
APL Digital Stock Price Target Raised to $45.27
- Analyst Price Target: Analysts covering APLD stock have set a 12-month average price target of $45.27, indicating an upside potential of approximately 120% from its closing price of $20.54, reflecting a positive market outlook.
- Rating Maintained: Roth Capital maintained a ‘Buy’ rating on APLD shares last month with a price target of $58, despite Nvidia's exit from the company, suggesting analysts remain confident in the company's fundamentals.
- Earnings Expectations: The data center company is expected to report its Q3 2026 earnings on April 8, with Wall Street forecasting revenue of $78.47 million for the quarter, representing a year-on-year increase of about 48%, indicating strong growth momentum.
- Market Sentiment Shift: APLD stock saw a significant spike in message volume on Stocktwits, increasing by about 63% in 24 hours, with user sentiment shifting from ‘neutral’ to ‘bullish’, reflecting growing investor confidence in the stock.
See More
Sonoco and Applied Digital See Active Options Trading
- Sonoco Options Volume: Sonoco Products Co. recorded options trading of 5,675 contracts, equating to approximately 567,500 shares, which represents about 65.6% of its average daily trading volume of 864,955 shares over the past month, indicating heightened market interest in its future performance.
- High Call Option Activity: Notably, the $60 strike call option expiring on May 15, 2026, saw 2,780 contracts traded today, representing around 278,000 underlying shares, suggesting that investors are increasingly optimistic about Sonoco's stock price appreciation.
- Applied Digital Options Dynamics: Applied Digital Corporation's options trading reached 102,143 contracts, translating to approximately 10.2 million shares, which accounts for 65.2% of its average daily trading volume of 15.7 million shares over the past month, reflecting active market interest in its stock.
- Bullish Call Option Trends: Particularly, the $24 strike call option expiring on April 2, 2026, recorded 5,025 contracts traded today, representing about 502,500 underlying shares, indicating strong investor confidence in Applied Digital's future growth prospects.
See More
Applied Digital Stock Soars 286% Over Past Year, Attracts Attention
- Stock Performance: As of March 23, Applied Digital's stock has surged 286% over the past year, nearly quadrupling in value, indicating strong market performance and significant investor interest.
- Market Value and Financing Plans: The company currently has a market value of approximately $7.5 billion and plans to borrow around $2.15 billion to build its Polaris Forge 2 AI campus, demonstrating strong confidence in future growth and commitment to infrastructure investment.
- Financial Status: In its latest earnings report, Applied Digital reported a 250% year-over-year revenue increase to $126.6 million in the second quarter, despite a net loss of $31.2 million, which is smaller than the previous year's loss, indicating signs of business improvement.
- Business Restructuring Impact: The company plans to spin off its cloud computing business and merge it with EKSO Bionics Holdings to create a new entity called ChronoScale, which may throttle near-term revenue growth but will help stabilize margins, reflecting a long-term strategic vision.
See More
Applied Digital's Rapid Growth and Investment Outlook
- Stock Surge: Applied Digital's stock has nearly quadrupled in value over the past year, with a 286% increase, indicating strong market recognition of its demand in the AI and high-performance computing sectors.
- Significant Revenue Growth: The company reported a 250% year-over-year revenue increase in Q2, reaching $126.6 million, although it still faced a net loss of $31.2 million, which is smaller than the previous year's loss, suggesting potential business improvement.
- Infrastructure Investment: Applied Digital plans to borrow approximately $2.15 billion to build the Polaris Forge 2 AI campus, with a market value of around $7.5 billion, reflecting the company's strong confidence in future growth.
- Business Restructuring Impact: The company announced a spin-off of its cloud computing business to merge with EKSO Bionics Holdings, which may throttle near-term revenue growth but is expected to stabilize margins, highlighting the necessity of its strategic adjustments.
See More
Applied Digital Secures $2.15 Billion AI Financing Deal
- Significant Financing: Applied Digital has raised $2.15 billion through a high-yield bond offering to develop 200 megawatts of data center capacity at its Polaris Forge 2 facility in North Dakota, providing robust funding support for its infrastructure expansion.
- Long-Term Contract Assurance: The company has leased this capacity to Oracle for approximately 15 years, expected to generate about $5 billion in revenue, ensuring the project's sustainability and profitability.
- Substantial Market Opportunity: Management highlighted that hyperscaler spending on AI infrastructure exceeds $400 billion annually, and Applied Digital's early positioning in North Dakota allows it to leverage cost-effective energy and ample land for expansion, capturing market opportunities.
- Risks and Challenges: Despite successful financing, Applied Digital faces high execution risks and customer concentration risks, with future growth heavily reliant on timely project delivery, as any delays could adversely affect the company's overall profitability.
See More
AI Spending Surge: CoreWeave vs. Applied Digital Growth Prospects
- CoreWeave Revenue Surge: In 2025, CoreWeave's revenue skyrocketed by 168% to over $5.1 billion, reflecting strong demand in the AI cloud infrastructure market, with expectations for continued high growth in the coming years.
- Significant Customer Growth: CoreWeave added nearly twice as many long-term customers in Q4 compared to its best previous quarters, with the number of clients spending over $1 million annually increasing by nearly 150%, indicating rapid market penetration and customer base expansion.
- Applied Digital Lease Revenue Outlook: The 400-megawatt data center under development by Applied Digital is expected to generate approximately $11 billion in lease revenue over 15 years, with the first 100 megawatts already operational, showcasing its long-term revenue potential.
- Market Competition and Risks: While CoreWeave anticipates capital expenditures of $30 billion to $35 billion in 2026, potentially leading to short-term margin compression, its robust revenue growth and strong backlog make it more attractive in the coming years.
See More
