Applied Digital Q2 Earnings: Can 40% Revenue Growth and CoreWeave Expansion Drive APLD Higher?

The Setup: Applied Digital Poised for Major Earnings Beat

Applied Digital Corp. (NASDAQ: APLD) is ready to drop its Q2 2026 financials this Wednesday after market close, and expectations are heating up. The Dallas-based AI infrastructure company is banking on explosive growth powered by its CoreWeave partnership and the scaling of hyperscale data centers. With APLD shares already up over 25% in early January, investors are betting big that the numbers will back the hype.

The Numbers That Matter

Here’s what the Street is bracing for:

Revenue Projection: $89.76 million (up from $63.87 million in Q2 2025)—translating to a 40%+ year-over-year surge

EPS Estimate: -$0.10 per share (slightly wider loss than last year’s -$0.06)

The revenue jump is the headline. It’s being fueled by the ramp-up of the Polaris Forge 1 facility and expanded contract work for CoreWeave Corp. (NASDAQ: CRWV), which has become a cornerstone tenant in Applied Digital’s infrastructure footprint.

Three Critical Catalysts Ahead

1. CoreWeave’s Mega-Expansion at Ellendale, ND

The biggest wildcard: CoreWeave locked in a full lease expansion at the Ellendale, ND campus to 400 MW, pushing the total contract value to roughly $11 billion over 15 years. The key question investors are hammering management on—when do those megawatts go live? Expected timeline is late 2025 or early 2026, which means Q2 earnings could provide the first real update on revenue ramp timing. This Ellendale ND deal could be a game-changer for APLD’s cash flow visibility.

2. ChronoScale Spin-Off: Sharpening Focus

Applied Digital announced plans to carve out its cloud division, merging it with Ekso Bionics Holdings, Inc. (NASDAQ: EKSO) to create ChronoScale. What’s the play here? Management gets to laser-focus on what they do best—building massive “AI Factory” data centers—while unlocking potential value from the cloud business separately. Expect questions on deal timing and strategic benefits.

3. Capital Stack and Polaris Forge 2

Applied Digital recently scored a development loan facility from Macquarie Group to fund new AI campus projects. With hyperscale data centers burning through capital, the earnings call will likely dissect cost structures, funding runways, and timelines for Polaris Forge 2. How much runway does APLD have, and what’s the path to profitability? That’s the investor litmus test.

The Bull and Bear Case

Bull thesis: Revenue growing 40%+, operational leverage finally kicking in despite near-term losses, and CoreWeave partnership de-risking future revenue. The Ellendale, ND expansion signals massive demand for AI infrastructure.

Bear concerns: Debt load remains elevated, execution risk on such massive expansion plans is real, and profitability timelines are still murky. Some investors worry about whether APLD can scale fast enough to justify valuations.

Stock Action

• APLD (Applied Digital): $30.29 (+0.10%)
• CRWV (CoreWeave): $78.66 (+0.92%)
• EKSO (Ekso Bionics): $8.74 (-8.24%)

The real action happens Wednesday after hours. Watch for management commentary on Ellendale ND revenue timing and capital requirements—those will likely dictate whether this rally sustains or faces a pullback.