New York, January 8, 2026, 04:51 EST — Premarket
- Shares rose about 7% after hours after revenue beat estimates; the stock last closed at $29.56.
- Q2 revenue hit $126.6 million, driven by high-performance computing fit-out work and early lease revenue.
- Investors are watching how fast long-term leases turn into recurring rent as new capacity comes online.
Applied Digital shares rose about 7% in after-hours trading on Wednesday after the data-center operator posted quarterly revenue above Wall Street estimates on demand for facilities used to run artificial-intelligence workloads. The stock last closed down about 2% at $29.56. 1
The timing matters. Big cloud firms are chasing power and floor space as they race to train and deploy larger AI models, and Applied Digital has pitched North Dakota as a place to lock in capacity before it gets scarcer.
Applied Digital reported revenue of $126.6 million for the fiscal second quarter ended November 30, beating analysts’ estimates of $88 million, according to LSEG data. A lot of that top-line surge was tied to buildout work, which can be lumpy, not just steady rent.
The company said it generated $85.0 million from its high-performance computing (HPC) hosting unit — HPC is industry shorthand for running heavy computing jobs — including $73.0 million of “tenant fit-out” work, or customer-specific buildout inside the data center, and $12.0 million of early lease revenue. It also disclosed a $2.35 billion private offering of 9.25% senior secured notes due 2030 and additional draws under a preferred-equity facility with Macquarie Asset Management; it ended the quarter with $2.3 billion in cash and $2.6 billion in debt. “This strong liquidity position gives us flexibility to complete construction and bring assets online,” CFO Saidal Mohmand said. 2
Applied Digital said it reached “ready-for-service” on a first 100-megawatt building at its Polaris Forge 1 campus and is building out a larger 400-MW site for AI cloud firm CoreWeave. It also flagged a roughly 15-year lease for 200 MW at its under-construction Polaris Forge 2 campus; a megawatt is a measure of power capacity, and “hyperscaler” is industry shorthand for the biggest cloud operators.
In an SEC filing late Wednesday, Applied Digital said it issued the quarterly results in a press release attached to the report. 3
On the Street, Northland’s Michael Grondahl called the company’s pre-lease financing step “very encouraging” in a note summarized by TipRanks, pointing to how quickly projects can move once capital and a customer line up. 4
Still, the setup cuts both ways. A meaningful slice of the quarter’s revenue came from fit-out services that can swing quarter to quarter, while the company is carrying significant debt and pushing multiple builds that depend on construction timelines, power delivery and customer ramp-ups.
