Applied Digital reported second-quarter fiscal 2026 revenue of $126.6 million, a 250% increase year-over-year driven by high-performance computing (HPC) hosting and legacy data center services. The company’s Polaris Forge 1 campus became fully energized during the quarter, enabling $85 million of revenue from its core AI-focused cloud services partner, CoreWeave. Revenue from its legacy cryptocurrency mining hosting business also grew 15% to $41.6 million. These gains narrowed the net loss from continuing operations by 76% to $31.2 million, and produced adjusted net income of $0.1 million, beating consensus expectations of a $0.21 per-share loss.

Applied Digital has secured 15-year leases on multiple data center facilities in North Dakota, providing long-term visibility into its revenue stream. In its first fiscal quarter (ended August 31, fiscal 2026), the company delivered 84% year-over-year revenue growth as it brought additional computing capacity online across its two core campuses. Management highlighted active discussions for a pipeline of 900 megawatts of new capacity, positioning the company to capture further hyperscaler and AI infrastructure demand.

To accelerate its build-out of next-generation data centers, Applied Digital issued $2.35 billion of senior secured notes and drew $787.5 million from a Macquarie Asset Management facility in late 2025. These financings bolster liquidity and de-risk project funding for Polaris Forge phases 2 and beyond. CEO Wes Cummins indicated that with this capital in place, the company can develop infrastructure three to four years faster than legacy builders and is well-positioned to meet ‘unprecedented levels’ of hyperscaler demand.

With global cloud providers forecast to spend over $400 billion annually on AI infrastructure, Applied Digital is targeting more than $1 billion in net operating income within the next five years. Long-term contracts, rapid capacity additions, and an improving margin profile underpin management’s guidance. For investors, the combination of outsized revenue growth, contracted revenue visibility, and a strengthened balance sheet offers a compelling risk-reward profile in the AI data center build-out cycle.