Markets
markets
Claire Yubin Oh

Applied Digital rises after posting massive Q2 sales beat, with management in “advanced discussions” to add another hyperscaler client

Applied Digital is up 4.7% in premarket trading as of 8 a.m. ET, after the AI data center operator shared better-than-expected Q2 2026 results on Wednesday evening while saying it’s in “advanced discussions” to add a major hyperscaler client, with the potential for fresh leases to be signed early this year.

For the quarter ended November 30, 2025, Applied Digital posted revenues of $126.6 million, up 250% from the year before and some way ahead of the $84.1 million analysts had expected, per estimates compiled by Bloomberg. Profitability greatly improved too, with adjusted EBITDA of $20.2 million and adjusted net income coming in at $100,000 for the quarter.

Leasing deals with companies like CoreWeave, which has signed deals for facilities that represent approximately $11 billion in prospective (and now current) revenue, has boosted the business, with CFO Saidal Mohmand saying that the company has “one of the strongest balance sheets in the industry.”

This marked the quarter in which Applied Digital booked a $5 billion 15-year AI factory lease with a “US based investment grade hyperscaler.”

During the conference call, CEO Wes Cummins said that the company is in “advanced discussions” on three sites that represent 900 megawatts in total, with “another investment-grade hyperscaler across multiple regions.”

In a longer-term view, Applied Digital also indicated that it now expects to exceed its net operating income target of $1 billion in the next five years, per its press release:

“Applied Digital positioned itself early through strategic investments in purpose-built, next-generation data centers. Our initial hyperscaler customers are expected to expand within our existing campuses, while additional customers are anticipated across new sites. This strong demand across our campuses, together with our current expectation for additional leases leads us to expect that we will now exceed our $1 billion NOI target within the next five years.”

At the end of last year, Applied revealed plans to spin off its digital cloud computing business, combining it with EKSO to form ChronoScale Corporation, a compute platform purpose-built to support AI.

“Our view on the quarter was quite positive with the company talking up consistent strong customer demand, its execution track record so far, and near term lease possibilities alongside the longer term pipeline expansion opportunities,” wrote Needham analyst John Todaro, who has a “buy” rating and a $41 price target on the stock.

More Markets

See all Markets
Luke Kawa
7/13/26
Meet the newly public, Bezos-backed company that’s recreating the sun and stars

General Fusion CEO Greg Twinney spoke with Sherwood News from the Nasdaq during the stock’s first day of trading.

Web Summit Vancouver 2026 - Day Three
markets
J. Edward Moreno

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

Luke Kawa
7/2/26
US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

Floridians Seek Employment Opportunities At Job Fair In Sunrise
Luke Kawa
7/1/26
Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

Meta CEO Mark Zuckerberg visits U.S. Capitol for Senate meetings
markets
Paige Oamek

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

Latest Stories

Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U.K. Ltd, Robinhood Derivatives, LLC, Robinhood Gold, LLC, Robinhood Asset Management, LLC, Robinhood Credit, Inc., Robinhood Ventures DE, LLC and, where applicable, its managed investment vehicles.
©2026 Sherwood Media, LLC