Applied Digital Corporation
Applied Digital Corporation Q2 FY26 Results — Earnings Call Analysis
Q2 FY26 earnings call: what management guided on revenue, margins and order book.
What the Q2 FY26 call signalled
4 of 5 strong
The short version
- Revenues expected to ramp significantly over the next 12 months as two 150-megawatt buildings come online (Page 2). - Total contracted lease revenue currently approximately $16 billion, with goals to grow total contract value targeting 70% investment grade tenants (Page 7). - Marketing four new development sites totaling approximately 1 gigawatt of grid power capacity, with some sites in advanced negotiation stages (Page 2). - Long-term vision to build a dominant data center region in the Dakotas with multiple hyperscalers and expand strategically across the U.S. - Applied Digital expects significant revenue ramp as new 150-megawatt buildings come online over the next 12 months (Page 2).
From Applied Digital Corporation's Q2 FY26 earnings-call transcript · updated 29 May 2026.
Revenue & Sales Performance
- Revenues expected to ramp significantly over the next 12 months as two 150-megawatt buildings come online (Page 2).
- Total contracted lease revenue currently approximately $16 billion, with goals to grow total contract value targeting 70% investment grade tenants (Page 7).
- Marketing four new development sites totaling approximately 1 gigawatt of grid power capacity, with some sites in advanced negotiation stages (Page 2).
- Long-term vision to build a dominant data center region in the Dakotas with multiple hyperscalers and expand strategically across the U.S. (Page 4).
- Goal to reach and exceed $1 billion of NOI within 5 years, with new internal leadership targets set at $1 billion and $2 billion NOI levels (Page 4).
2 more points management made on revenue & sales performance
Profitability & Margins
See what Applied Digital Corporation said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Base Electron investment: Applied Digital supports Base Electron, an independent power producer building ~1.2 GW natural gas-fired capacity in the Dakotas to supply grid power, expanding data center capacity with reduced risk for Applied Digital shareholders (p.4, p.10-11).
- Development of multiple data center campuses: Continuing construction of Polaris Forge 1 and 2 campuses with new buildings (100 MW operating, 2x150 MW in progress at PF1; 200 MW at PF2), plus Delta Forge 1 (300 MW AI factory campus, operational mid-2027) and marketing 4 new sites including 2 unnamed states plus one in North Dakota and Delta Forge 1 in Southern US (p.2, p.4).
- Power infrastructure buildout, including substations and transmission, essential for project completion and note financing release (p.10).
- Financing strategy: Planned shift from project finance loans to asset-backed securities to lower cost of capital and unlock shareholder value over 5 years (p.4, p.11).
Fundraising & Capital Structure
See what Applied Digital Corporation said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- Applied Digital has approximately $16 billion in contracted lease revenue.
- Current contracted customers include CoreWeave ($11 billion) and an investment-grade hyperscaler ($5 billion).
- The company is actively marketing 4 development sites (including Delta Forge 1 and others) with about 1 gigawatt of total grid power capacity in various negotiation stages.
- There are 3 sites currently in exclusivity with a hyperscaler, representing about 900 megawatts.
- Additional 100 megawatts at Polaris Forge 2 (PF2) remain uncontracted but are expected to be contracted in the near term.
- The focus is on obtaining the right customer and contracts rather than rushing for announcements.
2 more points management made on order book & pipeline
Continue your research
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Frequently Asked Questions
What were Applied Digital Corporation Q2 FY26 results?
- Revenues expected to ramp significantly over the next 12 months as two 150-megawatt buildings come online (Page 2). - Total contracted lease revenue currently approximately $16 billion, with goals to grow total contract value targeting 70% investment grade tenants (Page 7). - Marketing four new development sites totaling approximately 1 gigawatt of grid power capacity, with some sites in advanced negotiation stages (Page 2). - Long-term vision to build a dominant data center region in the Dakotas with multiple hyperscalers and expand strategically across the U.S. - Applied Digital expects significant revenue ramp as new 150-megawatt buildings come online over the next 12 months (Page 2).
What is Applied Digital Corporation share price analysis?
Applied Digital Corporation currently shows a strong growth signal based on ranking data. The stock trades at a P/E of -64.5 with a market cap of $14,188. Investors should review the full earnings analysis for detailed insights.
Is Applied Digital Corporation planning capital expenditure?
- Base Electron investment: Applied Digital supports Base Electron, an independent power producer building ~1.2 GW natural gas-fired capacity in the Dakotas to supply grid power, expanding data center capacity with reduced risk for Applied Digital shareholders (p.4, p.10-11).
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.