Applied Digital Corporation (ticker: APLD) reported its fourth-quarter 2025 earnings, surpassing analyst expectations with revenue of $38.0 million, a 13% decline year-over-year but above the estimated $37.1 million. The company posted an adjusted loss per share of $0.03, significantly better than the expected loss of $0.16 and an improvement of 94% year-over-year. Adjusted EBITDA stood at $1.0 million. Applied Digital's earnings beat consensus estimates by $0.12 per share. The company attributed its performance to strong demand in AI cloud infrastructure and secured long-term lease agreements with CoreWeave, including a 15-year lease for 250 megawatts with potential expansion to 400 megawatts. These lease agreements are valued at $7 billion, with potential extension up to $11 billion, underscoring Applied Digital’s position in elite data center infrastructure. Following the earnings release, several analysts upgraded their price targets and maintained Buy ratings: Compass Point upgraded APLD from Neutral to Buy, H.C. Wainwright raised the price target from $12 to $15, Needham increased it from $12 to $16, Lake Street from $14 to $18, and Roth Capital from $17.50 to $24. Applied Digital shares rose over 20% in pre-market trading after the report.