Applied Digital Corp. (APLD) drops its fiscal second-quarter 2026 earnings report on Wednesday after the closing bell, and investors have plenty to chew on. The Dallas-based company is building out AI-focused data centers at a feverish pace, and Wall Street wants to know if all that construction is translating into actual revenue.

What Wall Street Expects

Analysts are projecting quarterly revenue of $89.76 million and a loss of ten cents per share. That revenue figure would represent a more than 40% year-over-year increase from the $63.87 million Applied Digital posted in Q2 2025. Last year's loss was just six cents per share, so the widening gap reflects the reality of scaling up massive infrastructure before it starts printing money.

The expected revenue bump is largely driven by the ramp-up of the Polaris Forge 1 campus and services provided to CoreWeave Corp. (CRWV). Applied Digital is benefiting from operating leverage as its enormous fixed-cost infrastructure starts generating recurring cash flow, even if profitability remains a work in progress.

Three Things That Really Matter

The CoreWeave Relationship

Here's the headline grabber: CoreWeave exercised its option to expand its lease at Applied Digital's Ellendale, ND campus to a full 400 MW. That brought the total contract value to approximately $11 billion over 15 years. Yes, billion with a B.

Investors will be laser-focused on any updates about when these megawatts go live and start generating lease revenue. The expectation is late 2025 or early 2026, and any clarity on timing could move the stock significantly.

The ChronoScale Spinoff

Last week, Applied Digital announced it would spin off its cloud business and merge it with Ekso Bionics Holdings, Inc. (EKSO) to create a new entity called ChronoScale. This is strategic house-cleaning at its finest—Applied Digital wants to focus exclusively on its "AI Factory" data center business.

What investors need to hear: a timeline for completion and how this separation will streamline operations and unlock value. The cleaner the story, the easier it is for Wall Street to model the business.

Capital and Liquidity

Building hyperscale data centers isn't cheap. Applied Digital recently secured a development loan facility with Macquarie Group to fund its new AI campuses. Management's commentary on the cost of capital and future funding needs for Polaris Forge 2 will be essential. Skeptics are watching debt levels closely, and execution risks on such a massive construction pipeline remain top of mind.

Stock Performance and Sentiment

Applied Digital stock has surged heading into the report, climbing more than 25% in the first week of January alone. The growth story is compelling—AI demand is real, and Applied Digital is positioning itself as critical infrastructure for that boom. But concerns about debt and execution haven't disappeared. Wednesday's report will either validate the rally or give the bears ammunition.