HIVE Digital Technologies Ltd (NASDAQ:HIVE) posted a sharp upside surprise in its latest quarter, as stronger-than-expected Bitcoin production and expanding margins signaled renewed momentum across its core mining operations.

The results underscore how the company’s rapid capacity buildout is driving meaningful operating leverage, even as its emerging HPC segment prepares for a larger scale-up in the year ahead.

Following the results, Rosenblatt analyst Chris Brendler reiterated a Buy rating for HIVE Digital Technologies with a price forecast of $10.

Earnings Snapshot

On Monday, HIVE Digital Technologies reported second-quarter fiscal 2026 EPS loss of 7 cents, missing consensus EPS of one cent, and revenue of $87.3 million exceeded expectations of $80.76 million (+285% year over year).

Analysts View

The analyst writes that HIVE’s second-quarter fiscal 2026 results exceeded expectations, with a strong revenue beat and notable gross margin expansion.

In particular, the revenue surpassed the analyst’s estimate of $80.2 million, and gross margins of 49% were far above their 32% forecast, driving adjusted gross profit of $42.4 million, substantially higher than the analyst’s estimate of $25.5 million.

While HPC revenue slightly missed estimates, upcoming HPC investments are expected to drive future growth, adds the analyst.

Brendler writes that Bitcoin mining revenue reached $82.1 million (versus the analyst estimate of $74.3 million) due to higher BTC mined (718 versus the estimated 649). The Paraguay expansion, ahead of schedule, lifted gross margins by reducing hash costs, with further margin gains expected in fiscal 2027, adds the analyst.

Meanwhile, the analyst says that HIVE’s cloud HPC revenue came in slightly below analyst expectations at $5.2 million (versus $6.0 million forecast), though gross margins improved to 61.6% (versus 56.7% estimated).

Brendler expects management’s fiscal 2026 HPC growth target of $100 million ARR to be a key discussion point on the conference call.

Price Action: HIVE shares were trading higher by 7.70% to $3.56 at last check Monday.

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