Applied Digital Corporation (APLD) shares are charging higher Friday after the data center company delivered a knockout earnings report earlier this week and attracted a wave of bullish analyst commentary.
The Numbers That Matter: Applied reported adjusted earnings per share of 0 cents on Wednesday, which might not sound impressive until you realize analysts were expecting a 10-cent loss. That's the kind of beat that gets people's attention.
Revenue came in at $126.58 million, absolutely crushing the consensus estimate of $89.75 million. That represents 250% year-over-year growth, driven primarily by the company's HPC Hosting Business and stronger performance across its data center hosting operations.
Operational Milestones: Beyond the numbers, Applied hit some significant operational targets. The company achieved Ready-for-Service status at Polaris Forge 1, delivering 100 megawatts of capacity on schedule and fully energizing its first building. That's not just a promise anymore—it's live capacity.
Perhaps more importantly, Applied Digital announced a long-term lease with a U.S.-based investment-grade hyperscaler for 200 megawatts at its Polaris Forge 2 campus. Landing a hyperscaler client of that caliber validates the business model in a meaningful way.
The company also bolstered its financial position through multiple financing activities, including a $2.35 billion senior secured notes offering and additional draws under its preferred equity financing facility with Macquarie Asset Management. As of quarter end, Applied Digital reported approximately $2.3 billion in cash, cash equivalents, and restricted cash.
What the Analysts Say: Following the earnings report, analysts were quick to respond. Roth Capital analyst Darren Aftahi maintained a Buy rating and raised his price target from $56 to $58. B. Riley Securities analyst Nick Giles also maintained a Buy rating while bumping his target from $47 to $53.
At the time of writing, Applied Digital shares were trading 13.99% higher at $26.41.
