Applied Science Products, Inc. Q2 2026 Earnings Recap

Applied Digital's Fiscal Q2 2026 results reflect a pivotal shift with substantial lease revenue generation from its first data center, alongside significant new contracts that promise strong growth.

Key Takeaways

• Achieved readiness for service of the 100 MW Polaris Forge 1 data center, securing $11 billion in potential lease revenue over 15 years.
• Secured a $5 billion lease with a hyperscaler for the upcoming Polaris Forge 2, advancing on schedule with 200 MW expected to begin operations in 2026.
• In total, the company is on track to offer 600 MW across its North Dakota campuses, representing approximately $16 billion in projected lease revenue.
• Strong inbound demand from hyperscalers, leading to advanced discussions for additional sites, driven by a pressing need for AI infrastructure.
• Ongoing financial support through a $100 million development loan facility with Macquarie Equipment Capital enables efficient capital utilization for future expansions.