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. Reuters
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. Applied Digital Corporation
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. Applied Digital Corporation
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. TipRanks
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.
