DALLAS, January 8, 2026, 09:10 CST
- Shares rose about 7% in extended trading after revenue topped Wall Street estimates
- Revenue jumped 250% to $126.6 million in the quarter ended Nov. 30
- Applied Digital says it is in advanced talks with another investment-grade hyperscaler for new sites
Applied Digital shares rose about 7% in extended trading on Wednesday after the data-center operator reported fiscal second-quarter revenue above Wall Street estimates, buoyed by demand for facilities built for artificial-intelligence workloads. It posted revenue of $126.6 million for the quarter ended Nov. 30, beating analysts’ estimate of $88 million, LSEG data showed.
The print lands as cloud groups and AI specialists scramble for places that can take a lot of power and deliver dense computing quickly. A “hyperscaler” is industry shorthand for a very large cloud provider that rents capacity in huge blocks.
Applied Digital said it has signed leases with two hyperscalers across two campuses in North Dakota and is in “advanced discussions” with another investment-grade customer across multiple regions. The signed deals cover 600 megawatts of capacity — megawatts are a rough measure of how much electricity a campus can feed into servers and the cooling systems that keep them alive. Applied Digital Corporation
Revenue rose 250% from a year earlier to $126.6 million, while net loss attributable to common shareholders narrowed to $31.2 million, or 11 cents a share. Adjusted earnings per share were break-even, ahead of analysts’ forecasts for a loss, according to Investing.com.
The company said its high-performance computing business drove the jump, but most of that came from tenant “fit-out” work — installing and configuring power and cooling inside a building — rather than recurring rent. It also logged $41.6 million in revenue from its data-center hosting unit.
CoreWeave, an AI cloud firm, holds 400 MW under contract at the company’s Polaris Forge 1 campus, which Applied Digital said represents about $11 billion of prospective lease revenue over the term. A separate 200 MW, roughly 15-year lease at the under-construction Polaris Forge 2 campus is expected to bring in about $5 billion. “The Dakotas represent a compelling region for hyperscalers due to their cool climate and abundant energy,” Chief Executive Wes Cummins said.
To fund the build-out, Applied Digital said it completed a $2.35 billion private offering of 9.25% senior secured notes due 2030 — asset-backed bonds that rank ahead of many other claims in a restructuring. It has drawn $900 million under a preferred-equity facility with Macquarie Asset Management and entered a development loan facility with Macquarie Equipment Capital starting with $100 million. “This strong liquidity position gives us flexibility to complete construction, bring assets online, and generate cash flow to refinance and pay down debt,” Chief Financial Officer Saidal Mohmand said.
Applied Digital also said it plans to spin out its cloud unit and merge it with Ekso Bionics to form ChronoScale, a GPU (graphics processing unit)-focused cloud platform, a deal that would leave Applied Digital with a majority stake. The company has also outlined a shift toward a data-center REIT — a real estate investment trust structure used by landlords such as Digital Realty and Equinix — though the ChronoScale deal still needs regulatory and shareholder approvals.
But the numbers carry some caveats: fit-out revenue can swing sharply quarter to quarter, and the next leg depends on finishing new buildings on schedule and turning talks with would-be tenants into signed leases. Higher borrowing costs or delays in power delivery could squeeze returns, especially as the company adds debt before rent ramps.
