Array Digital Infrastructure (AD) Could Be 24% Undervalued As Earnings Strengthen And Guidance Tightens

Why the latest earnings matter for Array Digital Infrastructure

Array Digital Infrastructure (AD) has drawn fresh attention after reporting second quarter 2026 results alongside a narrower full year revenue outlook. Sales, revenue, and net income for both the quarter and first half were all higher than a year earlier.

The company reported second quarter sales of US$53.18 million and revenue of US$54.07 million, compared with US$27.23 million and US$28.53 million respectively in the same period of 2025. Second quarter net income was US$358.7 million, with basic and diluted earnings per share from continuing operations at US$3.86, up from US$0.17 a year earlier.

For the first six months of 2026, Array Digital Infrastructure recorded sales of US$104.2 million and revenue of US$106.08 million, compared with US$53.83 million and US$55.51 million in the prior year period. Net income for the half year was US$536.49 million, with basic earnings per share from continuing operations at US$5.94, compared with US$0.23 a year earlier, and diluted earnings per share at US$5.94, compared with US$0.22.

Alongside these results, the company narrowed its 2026 revenue guidance to a range of US$205 million to US$215 million. Management attributed this tighter range to higher interim site revenue, which signals a clearer view of expected full year performance from existing tower activity.

See our latest analysis for Array Digital Infrastructure.

The latest earnings and tighter 2026 revenue range come after a sharp reset in Array Digital Infrastructure's share price, which is down 35.07% year to date and 31.94% over 90 days, even though the 3 year total shareholder return of 90.96% and 5 year total shareholder return of 148.02% still point to a strong longer term outcome.

If these results have you thinking about where growth and infrastructure themes could go next, it may be worth scanning a wider field of AI focused infrastructure plays through the 56 AI infrastructure stocks

Array Digital Infrastructure now has strong recent earnings on one side and a share price that has reset sharply on the other. Is it better to lean in after this drop or wait for a cheaper entry before acting on the valuation work?

Most Popular Narrative: 24.3% Undervalued

Analysts see Array Digital Infrastructure's fair value at $46.34 compared with the recent $35.06 share price, which puts a clear spotlight on the narrative driving that gap.

The anticipated mid-2025 closing of the transaction with T-Mobile, subject to regulatory approval, is expected to provide UScellular with significant proceeds, which could impact earnings positively by paying down debt and potentially declaring special dividends. The expansion of UScellular's fiber program, having already expanded its footprint by 30% in the last three years, presents opportunities for future revenue growth as more addresses are delivered and internet penetration increases.

Read the complete narrative.

Want to understand why a modest revenue outlook still backs a higher valuation for Array Digital Infrastructure? The core of this narrative is a sharp reset in margins and a future earnings profile that leans heavily on a rich profit multiple and very different earnings level. Curious which specific revenue path and profitability assumptions have to line up to support that fair value and analyst target?

Result: Fair Value of $46.34 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still clear risks to this Array Digital Infrastructure story, including regulatory uncertainty around the T-Mobile deal and the chance that expected cost savings or margin assumptions may disappoint.

Find out about the key risks to this Array Digital Infrastructure narrative.

Another View on Array Digital Infrastructure’s Valuation

The analyst target suggests Array Digital Infrastructure is undervalued at $35.06, yet our DCF model paints a different picture. On SWS DCF numbers, AD trades above an estimated cash flow value of about $20.27 per share, which points to a stock that could already be pricing in a lot of future optimism. Which lens do you trust more when the story and the cash flows disagree?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Array Digital Infrastructure for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With sentiment on Array Digital Infrastructure mixed after earnings, it makes sense to move quickly and test the numbers yourself rather than rely on headlines. To weigh the upside and downside trade off in one place, review the 4 key rewards and 2 important warning signs.

Looking for more Array Digital Infrastructure investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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