Applied Digital Reports $126.6M Q2 Revenue, Beats Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
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.
Analyst Views on APLD
Wall Street analysts forecast APLD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for APLD is 42.78 USD with a low forecast of 35.00 USD and a high forecast of 56.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 29.560
Low
35.00
Averages
42.78
High
56.00
Current: 29.560
Low
35.00
Averages
42.78
High
56.00
About APLD
Applied Digital Corporation is a designer, builder, and operator engineered data centers and colocation services for Artificial Intelligence (AI), cloud, networking, and blockchain workloads. The Company operates through two operating segments: the Data Center Hosting Business and the HPC Hosting Business. The Data Center Hosting Business operates data centers to provide energized space to crypto mining customers. Its custom-designed data centers allow customers to rent space based on their power requirements also it serves one crypto mining customer. 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. The Company builds over two HPC focused data center facilities to provide 100 megawatts (MW) and 150 MW. Its subsidiaries include APLD Rattlesnake Den I LLC, Applied Talent Resources LLC, Sai Computing LLC, and others.
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.
