TLDR
- Applied Digital reported Q2 2026 revenue of $126.6 million, beating estimates of $86-89 million by 46%
- Shares rose more than 2% in pre-market and jumped 7.41% after the earnings release
- Wall Street now rates APLD a Strong Buy based on 11 recent Buy ratings from analysts
- Freedom Capital set a $36 price target while Arete set a $99 target after initiating coverage
- The stock is up 23% year-to-date and 209% over the past 12 months
Applied Digital shares rose in Wednesday’s pre-market trading and jumped after hours following a strong earnings report that beat Wall Street expectations by a wide margin. The company reported fiscal Q2 2026 revenue of $126.6 million, far exceeding analyst estimates of $86 million to $89 million.
The revenue beat represented a surprise of roughly 46% above consensus forecasts. Applied Digital still posted a loss per share for the quarter, but the strong top-line performance triggered a positive reaction in the stock.
Shares gained more than 2% in pre-market trading on Wednesday as investors anticipated the results. The stock continued climbing in after-hours trading following the actual earnings release.
Applied Digital Corporation, APLD
Analysts Issue Strong Buy Ratings
Freedom Capital initiated coverage of Applied Digital on Wednesday with a Buy rating and a price target of $36. That target implies an upside of nearly 19% from Tuesday’s closing price.
Analysts at Freedom Capital forecast the company’s adjusted EBITDA to exceed 60% in two financial years. The firm expects Applied Digital’s Polaris Forge 1 and 2 projects to deliver a levered internal rate of return in the mid-20% range.
Arete also initiated coverage of Applied Digital with a Buy rating and a much higher price target of $99. Wall Street now holds a Strong Buy consensus on the stock based on 11 recent Buy ratings.
Applied Digital is a Dallas, Texas-based company that builds digital infrastructure for high-demand computing applications. The company offers cloud services that include GPU computing for AI workloads.
Data Center Projects Drive Growth
The Polaris Forge 1 and 2 projects will account for Applied Digital’s first 700 megawatts of contracted power. The Polaris Forge 1 campus is part of a 400 MW fully contracted deployment for CoreWeave under long-term lease agreements.
The Polaris Forge 2 project has an initial planned capacity of 280 MW. The company expects this facility to reach full capacity in 2027.
Wall Street had estimated Applied Digital would report a loss of $0.11 per share on revenue of $86.66 million for the quarter. The actual revenue figure of $126.6 million beat those estimates by roughly $40 million.
Retail sentiment on Stocktwits around Applied Digital soared on Wednesday, trending in the ‘extremely bullish’ territory. APLD stock is up 23% year-to-date and has gained 209% over the past 12 months.
The stock jumped 7.41% in trading as investors reacted to the earnings beat and analyst upgrades.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
