Core Scientific Reports Strong Q2 Colocation Revenue Ahead of Earnings

• Core Scientific is scheduled to report Q2 2026 earnings on Friday, August 14, with analysts projecting loss of $0.02 per share and revenue of approximately $144.9 million.
• The company recently secured a major deal with AMD covering 530MW of capacity, generating over $14 billion in base revenue over 15 years.
• Analyst consensus remains a Moderate Buy with an average target price of $32.18, supported by recent upgrades from Canaccord Genuity and Cantor Fitzgerald.
• Institutional investors like Situational Awareness LP have significantly increased their holdings, contrasting with recent insider selling by executive Todd M. Duchene.

Investors are anticipating Core Scientific's Q2 2026 earnings report, which is scheduled for release before the market opens on Friday, August 14. Current analyst projections indicate a modest loss of $0.02 per share and revenue of approximately $144.9 million for the quarter. This expectation follows a mixed performance in Q1 2026, where the company reported a significantly wider loss of $3.32 per share compared to the consensus estimate of $0.06.

While the earnings miss in the first quarter was substantial, revenue came in higher than expected at $164.20 million versus estimates of $144.83 million. Market sentiment has shifted positively among several research firms in recent weeks. Canaccord Genuity Group raised its target price from $30.00 to $36.00 and issued a buy rating on July 29.

Similarly, Cantor Fitzgerald boosted its price target from $25.00 to $29.00 with an overweight rating in April. Capital One Financial also set a $33.00 price objective in late July. The broader analyst consensus reflects a Moderate Buy rating with an average price target of $32.18, based on two Strong Buy, sixteen Buy, one Hold, and one Sell rating.

What Are the Implications of the Major AMD Partnership?

Core Scientific reported Q2 2026 colocation revenue of $137 million, with billable capacity rising to 437 megawatts by mid-July, an increase of nearly 200MW from Q1. The company secured a major deal with AMD covering 530MW across five sites, generating over $14 billion in base revenue over 15 years with 2.5% annual escalators. First AMD megawatts are expected in the first half of 2027, with the company targeting 265MW delivery in 2027 and the remaining 265MW in 2028.

The company aims for 600MW annual capacity by 2028 as it continues its pivot from Bitcoin mining to AI infrastructure. Core Scientific is reducing its mining footprint by 30% from Q1 as it pursues a 2GW additional site pipeline. Despite these strong operational metrics, shares fell 3.13% to $20.09 after the results were released, as investors weighed the $6 billion capital requirements and the long build-out timeline.

How Is Institutional Sentiment Shifting Amid Insider Sales?

Corporate governance and insider sentiment present additional factors for investors. Todd M. Duchene, an insider, sold 10,000 shares on August 3 at an average price of $22.23, totaling $222,300. This transaction reduced his direct ownership by 0.50%, leaving him with 1,979,101 shares valued at approximately $44 million. In the last quarter alone, corporate insiders have sold a total of 90,000 shares worth $2,248,600.

Conversely, institutional investors have been accumulating shares aggressively. Situational Awareness LP raised its position by 42.5% in Q4, adding 8.57 million shares to hold a total of 28.76 million shares valued at $418.7 million. Value Aligned Research Advisors LLC initiated a new $117.8 million position in Q4, while Vanguard Group Inc. increased its holdings by 18.7% during the same period.

Moody National Bank Trust Division trimmed its holdings by 42.6%, selling 46,482 shares. This divestment contrasts with activity from other institutional investors like Segall Bryant & Hamill LLC, which increased its position by 108.2%. The stock currently trades with a market capitalization of $6.76 billion, a negative P/E ratio of -4.76, and a high beta of 5.59, indicating significant volatility relative to the broader market.

Looking ahead, the average analyst expectation for the current fiscal year is a $1 EPS loss, with a break-even projected for the next fiscal year. This trajectory suggests markets are pricing in a path toward profitability, contingent on the company's ability to manage operational costs in its AI and crypto mining infrastructure. The divergence between strong revenue performance and weak profitability highlights ongoing challenges in margin management despite top-line growth.

The broader industry trend mirrors this pivot, with peers like Firmus and MARA redirecting power infrastructure toward AI and high-performance computing. Core Scientific's transition reflects investor demand for the physical infrastructure supporting AI rather than solely software companies.