-+ 0.00%
-+ 0.00%
-+ 0.00%

Applied Digital Posts Strong Q2 As Talks With New Hyperscaler Tenant Advance

Benzinga·01/09/2026 14:03:13
Listen to the news

Applied Digital Corp (NASDAQ:APLD) reported a strong beat for the second quarter of fiscal 2026 and said it is in advanced talks with a new hyperscaler tenant, according to Needham.

The Applied Digital Analyst: Analyst John Todaro reaffirmed a Buy rating and price target of $41.

The Applied Digital Thesis: The company’s quarterly revenues and adjusted EBITDA are in-line with Needham's estimates. Todaro noted that the final numbers are significantly higher than what the Street expected.

Check out other analyst stock ratings.

Applied Digital reported revenues of $126.6 million and adjusted EBITDA of $20 million, he added.

The company brought the first 100MW online for CoreWeave Inc (NASDAQ:CRWV) on schedule. Management expressed confidence in meeting the timelines for the additional builds, the analyst stated.

"The company is in advanced talks with an IG hyperscaler across 3 sites that represent in total 900MW with [the] possibility of a finalized lease in early 2026 (albeit the leases will likely be signed in phases)," Todaro added.

Applied Digital has plans to spin out its cloud compute segment in a business combination with Ekso Bionics Holdings Inc (NASDAQ:EKS). The combined entity, ChronoScale, expects to generate around $60 million in trailing 12 months revenues.

APLD Price Action: Shares of Applied Digital had risen by 8.05% to close at $31.94on Thursday.

Image: Shutterstock