Dallas-based Applied Digital Corporation (NASDAQ: APLD) is scheduled to disclose its second-quarter financial results after markets close on Wednesday, January 7, 2026. Market analysts anticipate that the company will report a loss of 22 cents per share for this quarter, a notable increase in the loss compared to 6 cents per share during the same period one year prior. Conversely, revenue is projected to rise substantially, with consensus estimates around $82.22 million, up from $63.87 million reported the previous year, according to data compiled by Benzinga Pro.
Earlier, on December 29, 2025, Applied Digital revealed intentions to demerge its cloud computing segment. Concurrently, the company also proposed to engage in a business combination with EKSO to introduce ChronoScale, a new venture proposed to leverage assets or synergies between the companies.
In response to these developments and approaching earnings, Applied Digital's stock price gained 1.8%, finishing the trading session on Wednesday at $24.52.
Benzinga’s analytics platform provides investors access to the most recent analyst recommendations, which are sortable by various parameters such as stock ticker and rating changes, offering valuable insight into market sentiment surrounding Applied Digital.
Examining recent evaluations from some of the most accurate market analysts tracked by Benzinga gives a clearer perspective on expectations for Applied Digital. Northland Capital Markets’ Mike Grondahi reaffirmed an Outperform rating as of December 30, 2025, setting a price target of $40. Grondahi’s historical analyst accuracy rate stands at 73%, signifying a reliable track record.
Similarly, Rob Brown of Lake Street maintained a Buy rating with a higher price target positioned at $45 on the same date, also holding an accuracy rate of 73%. Earlier, on October 29, 2025, Needham analyst John Todaro upheld a Buy rating, setting a price target at $41, supported by an 84% accuracy rate, the highest amongst these analysts.
Craig-Hallum’s George Sutton also remained positive on the stock, retaining a Buy rating and increased his price target from $37 to $39 as of October 23, 2025, backed by a 73% accuracy rate. Additionally, on October 10, 2025, HC Wainwright & Co.’s Kevin Dede maintained a Buy rating while significantly raising his price target from $20 to $40. Dede’s accuracy rate is reported at 66%.
For investors considering positions in Applied Digital, these analyst ratings and adjustments provide insight into the stock’s potential trajectory as the company approaches key strategic changes and unveils its financial performance. The fluctuating price targets indicate differing views on the company’s valuation linked to its evolving business segments and operational outlook going forward.
Applied Digital carried a trading price of approximately $26.02, with a 6.10% increase on the day highlighted prior to the earnings announcement. The company represents a focus of attention for market participants interested in the intersection of digital infrastructure and emerging technologies, particularly in light of its planned corporate restructuring and new project launches.
Key Points:
- Applied Digital is expected to report a significantly larger quarterly loss than the prior year, though revenue is estimated to have grown year-over-year.
- The company recently announced strategic corporate moves, including spinning out its cloud business and proposing a combination with EKSO to form ChronoScale.
- Several accurate analysts maintain Buy and Outperform ratings with price targets ranging from $39 to $45, reflecting confidence despite rising losses.
- The stock price has shown positive momentum amid these developments, closing higher ahead of the earnings release.
Risks and Uncertainties:
- The widening loss per share suggests operational or cost pressures that investors should monitor for potential ongoing impact.
- Uncertainties persist regarding the success and integration outcomes of the planned spin-off and business combination.
- Market reaction to the earnings report may be volatile given the anticipated increase in losses alongside revenue growth.
- Analyst projections, though informed, vary significantly in price targets, highlighting differing assessments of Applied Digital’s valuation and future prospects.
Disclosure: This analysis is based solely on publicly available information and does not constitute investment advice. Investors should consider their own risk tolerance and conduct further research before making investment decisions.