Shares of Applied Digital (APLD) gained in after-hours trading after the AI data center company reported strong results for the third quarter of Fiscal 2026. The company’s top‑line growth was supported by rising demand for high‑power AI data centers.
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New trading tool for APLD bulls/bearsThe company delivered adjusted earnings per share of $0.09, versus Wall Street forecasts calling for a loss of $0.15 per share. Also, the bottom line compared favorably with a loss of $0.01 per share in the prior-year quarter.
Also, revenue of $126.6 million came in well ahead of consensus estimates of $75.47 million. Sales in the quarter were up 139% from $52.9 million reported a year earlier.
AI Data Center Expansion Hits Full Pace
Management disclosed that Applied Digital is now running one of the few 100 MW direct-to-chip liquid-cooled data centers in operation today, with the first Polaris Forge 1 building fully operational and contributing a full quarter of revenue.
Construction is moving ahead on two additional 150 MW facilities at the same site, and the 200 MW Polaris Forge 2 hyperscaler campus is also on track to start coming online in 2026. During the quarter, the company also broke ground on Delta Forge 1, a massive 300 MW AI Factory campus in the southern U.S., expected to begin operations in mid‑2027.
With four development sites now in play, Applied Digital said its long‑term power potential is roughly 1 GW, only a fraction of which has been contracted so far.
Looking ahead, management says demand for high‑density AI compute is only getting stronger, with hyperscaler spending estimates jumping from $400 billion to nearly $700 billion annually. With multiple campuses under construction and a growing pipeline of power‑rich sites, Applied Digital reiterated its long‑term goal of generating $1 billion in NOI within five years.
Is APLD a Good Stock to Buy?
On Wall Street, analysts remain highly bullish with a Strong Buy consensus rating on APLD stock based on eight Buys assigned in the past three months. Further, Applied Digital’s average share price target of $47.86 per share implies an upside of 72.22% from its current level. It’s worth noting that these estimates will likely change following today’s earnings report.
