Applied Digital Corporation (NASDAQ: APLD) is experiencing significant premarket momentum following its exceptional fiscal Q1 2026 earnings report released yesterday. The stock surged to $36.25 in premarket trading as of 6:03 AM EDT on October 10, 2025, representing a 23.76% gain from the previous close of $29.29. This dramatic uptick comes on the heels of an 84% year-over-year revenue increase and a landmark $11 billion lease agreement that has positioned the company as a major infrastructure provider for AI computing workloads. The strong earnings beat and strategic expansion plans have captured investor attention, making APLD the most‑traded ticker on Yahoo Finance following the announcement.
Q1 Results Exceed Expectations With Major AI Lease Expansion
Applied Digital’s fiscal first quarter 2026 results significantly exceeded market expectations, with revenue reaching $64.2 million compared to analyst estimates of $45.46 million—an impressive 84% year‑over‑year increase. The company reported an adjusted loss per share of $0.03, substantially better than the projected loss of $0.16 per share. This strong performance was driven primarily by increased tenant fit‑out services and expanded hosting operations, with the Data Centre Hosting segment alone generating $37.9 million in revenue during the quarter.
The cornerstone of investor enthusiasm centers on Applied Digital’s expanded partnership with AI cloud provider CoreWeave. The company secured an additional 150 MW lease agreement during Q1, completing the full 400 MW capacity at its Polaris Forge 1 campus in North Dakota. This third lease brings the total anticipated contracted lease revenue to approximately $11 billion over 15‑year terms, adding to $7 billion in previously announced agreements. CEO Wes Cummins emphasized that with hyperscalers expected to invest approximately $350 billion into AI deployment this year, Applied Digital is positioned as “the modern‑day picks and shovels of the intelligence era.”
Beyond the immediate results, Applied Digital has broken ground on Polaris Forge 2, designed specifically for AI and high‑density workloads with an initial 200 MW phase scheduled to come online in 2026 and potential for full 1 GW buildout by 2027. The company secured $362.5 million in capital after quarter‑end, including $112.5 million from a $5 billion preferred equity facility with Macquarie and $200 million through Series G preferred stock. Management has set an ambitious target of $1 billion in net operating income within five years, supported by the company’s multi‑year lease agreements and over $1.6 billion in financed infrastructure across both campuses.
APLD Stock Extends Gains Amid Record Volume And Analyst Optimism
Applied Digital stock closed Thursday’s regular session at $29.29, up 4.83% or $1.35, before extending gains significantly in after‑hours and premarket trading. The stock surged to $36.25 in premarket trading as of 6:03 AM EDT on October 10, 2025, representing a 23.76% gain and adding nearly $7 to its value. This dramatic move follows an initial 14% surge in post‑market action immediately after the earnings release, demonstrating strong and sustained investor enthusiasm for the company’s results and growth prospects.
The stock has demonstrated exceptional performance across multiple timeframes, positioning it as one of the strongest performers in the technology infrastructure sector. Year‑to‑date returns stand at an impressive 283.38%, significantly outpacing the S&P 500’s 14.51% gain over the same period. The one‑year return of 295.81% dwarfs the broader market’s 16.28%, while the three‑year return of 1,789.68% compared to 85.05% for the S&P 500 highlights the company’s exceptional growth trajectory. The stock’s five‑year return of 523.19% further underscores its long‑term appreciation potential in the rapidly expanding AI infrastructure market.
Applied Digital currently maintains a market capitalization of $7.888 billion as of October 2, 2025, with an enterprise value of $7.93 billion. The company’s 52‑week range spans from $3.31 to $29.98, with the stock now trading at the upper end of this range following the earnings announcement. Analyst price targets range from a low of $18.00 to a high of $43.00, with an average target of $27.00—suggesting the current premarket price has already exceeded consensus expectations. The stock carries a high beta of 6.59, indicating significant volatility, while analyst recommendations remain predominantly bullish with strong buy and buy ratings dominating the consensus outlook as the company capitalizes on surging demand for AI data center infrastructure.