Applied Digital Corporation reported fiscal second‑quarter 2026 revenue of $126.6 million, a 250% year‑over‑year increase that far exceeded consensus estimates of $81.2 million to $89.3 million. The surge was driven by a $85 million jump in its HPC Hosting Business, which captured a growing share of the AI‑infrastructure market as hyperscalers accelerate data‑center deployments.
Net income attributable to common shareholders was a loss of $31.2 million, translating to a diluted loss of $0.11 per share—wider than the consensus loss of $0.0986 to $0.12 per share. The miss reflects higher operating expenses from construction and capital‑intensive lease‑acquisition costs, offset by strong revenue growth but not enough to cover the accelerated investment spend.
Segment analysis shows the HPC Hosting Business generated $85 million in revenue and $20.2 million in adjusted EBITDA, while the Data Center Hosting Business contributed $41.6 million in revenue and $16 million in operating profit. The mix shift toward higher‑margin HPC contracts helped lift overall profitability, but the company remains in a growth‑phase loss position as it scales its infrastructure.
Polaris Forge 1 reached ready‑for‑service status, delivering 100 MW of capacity on schedule. CoreWeave’s 400 MW lease at the site is projected to generate roughly $11 billion in prospective lease revenue, and a 200 MW lease at Polaris Forge 2 adds about $5 billion. The combined 600 MW of leased capacity underpins a $16 billion pipeline of future revenue, reinforcing the company’s long‑term growth trajectory.
The balance sheet remains robust, with $2.3 billion in cash and $2.6 billion in debt. The company drew $900 million from its preferred‑equity facility with Macquarie Asset Management and completed a $2.35 billion senior‑secured private notes offering, providing additional liquidity to fund construction and lease‑acquisition activities.
Management emphasized continued focus on accelerating construction, securing new hyperscaler customers, and maintaining a strong balance sheet. CEO Wes Cummins highlighted the company’s first‑mover advantage in the Dakotas and the strategic importance of the Polaris Forge sites. Freedom Capital upgraded the company to a “strong‑buy” rating, citing the revenue beat and the expanding lease pipeline as key drivers of confidence.
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