Applied Digital Corp (NASDAQ: APLD) shares surged 28% in pre-market trading on Friday after the digital infrastructure provider reported better-than-expected financial results for its fiscal first quarter 2026 and revealed plans for a significant expansion of its data center capacity.
Applied Digital’s revenue for the quarter rose 84% year over year to $64.2 million, surpassing the analyst consensus estimate of $54.6 million.
The company also posted a non-Generally Accepted Accounting Principles (GAAP) loss of $0.03 per share, also surpassing Wall Street expectations.
As well, Applied Digital announced a new lease agreement with CoreWeave to secure an additional 150-megawatt (MW) lease for its Polaris Forge 1 campus.
The new agreement is expected to generate about $11 billion in lease revenue over a 15-year term, according to the company.
“With hyperscalers expected to invest approximately $350 billion into AI deployment this year, we believe we are in a prime position to serve as the modern-day picks and shovels of the intelligence era,” Applied Digital CEO Wes Cummins said in a statement.