Why Is Applied Digital (APLD) Stock Surging Premarket Today? Q2 Earnings Impress

Applied Digital Corporation stock is experiencing a significant surge in premarket trading on Thursday, January 8, 2026, following the company’s impressive fiscal second quarter 2026 earnings release. The AI data center provider delivered results that substantially exceeded Wall Street expectations, with revenue more than tripling year-over-year and earnings coming in well ahead of analyst forecasts.

The strong performance was driven by accelerating demand for AI infrastructure and the successful execution of major hyperscaler contracts in North Dakota. As of 5:35 AM EST, APLD shares were trading at $31.55 in premarket, up $1.99 or 6.73% from the previous close of $29.56.

Q2 Earnings Beat Driven by AI Data Center Demand

Applied Digital reported fiscal second quarter revenue of $126.59 million for the period ending November 30, 2025, representing a remarkable 98.2% increase from the same period last year and significantly surpassing the analyst consensus estimate of $85.34 million. On an adjusted basis, the company achieved 250% year-over-year revenue growth.

The earnings performance was equally impressive, with adjusted earnings per share of $0.00, beating analyst expectations for a loss of $0.12 per share. This marked a substantial improvement in profitability for the company.

The strong performance was primarily driven by Applied Digital’s High-Performance Computing (HPC) Hosting Business, which contributed $85 million in quarterly revenue. This included $73 million from tenant fit-out services and $12 million from rental revenue as the company’s first building at Polaris Forge 1 became fully operational.

The Data Center Hosting Business added $41.6 million, representing a 15% year-over-year increase. CEO Wes Cummins emphasized that the Dakotas region offers compelling advantages for hyperscalers due to its cool climate and abundant energy resources.

Applied Digital announced it had signed leases with two hyperscalers across two separate North Dakota campuses, marking a strategic expansion in the region. The company highlighted its first-mover advantage and proven track record of executing technically complex data center construction projects. Additionally, Applied Digital is in advanced discussions with another investment-grade hyperscaler for multiple regions including more locations in the Dakotas and select southern U.S. markets.

The company’s major contracts include a 400 MW agreement with CoreWeave at Polaris Forge 1 representing approximately $11 billion in prospective lease revenue and a 200 MW lease with an investment-grade hyperscaler at Polaris Forge 2 worth approximately $5 billion over its 15-year term.

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APLD Stock Performance and Market Reaction

Following the earnings announcement, APLD shares jumped 5.5% in after-hours trading on Tuesday and continued their momentum into Wednesday’s premarket session with a 6.73% gain to $31.55 as of 5:35 AM EST. The stock had closed regular trading on Tuesday at $29.56, down 2.33% for the day.

Over the past year, Applied Digital has delivered exceptional returns for investors, with the stock up 213.80% compared to the S&P 500’s 17.12% gain over the same period. Year-to-date, APLD shares have already climbed 20.55% versus the broader market’s 1.10% increase.

Wall Street analysts maintain a universally bullish outlook on Applied Digital, with all 11 analysts covering the stock issuing Buy ratings and zero Hold or Sell ratings, resulting in a Strong Buy consensus. The average analyst price target stands at $42.90 per share, representing potential upside of approximately 45.1% from current levels.

Freedom Capital Markets initiated coverage on the stock on January 7, 2026, with a Buy rating and a price target of $36. The company’s market capitalization stood at $8.255 billion as of the latest trading session.

Applied Digital ended the quarter with a strong balance sheet, holding $2.3 billion in cash, cash equivalents, and restricted cash. The company recently completed a $2.35 billion senior secured private notes offering and has drawn $900 million under its preferred equity arrangement with Macquarie Asset Management.

Additionally, Applied Digital announced plans to spin out its Cloud business and combine it with EKSO Bionics Holdings to form ChronoScale, with Applied Digital expected to retain over 80% ownership of the combined entity upon closing. Analysts are likely to update their price targets and estimates following the strong earnings beat.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.