Applied Digital (APLD) will announce its results for the third quarter of Fiscal 2026 after the market closes on Wednesday, April 8. The company is benefiting from strong demand for its high-performance data centers required for AI workloads. APLD stock has rallied 379% over the past year but is up only 3% year-to-date. Despite high debt levels and profitability concerns, Wall Street is bullish on Applied Digital, given strong demand trends and lease contracts.
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Trade APLD with leverageMeanwhile, Wall Street expects Applied Digital to report a wider adjusted loss per share of $0.15 for Q3 FY26 compared to $0.08 in the prior-year quarter. Revenue is expected to rise about 43% year-over-year to $75.47 million. Investors will pay attention to management’s commentary on the demand backdrop, any new lease deals, debt reduction, and profitability.
Roth MKM Analyst’s Views Ahead of APLD’s Q3 Earnings
Heading into Q3 FY26 earnings, Roth MKM analyst Darren Aftahi reiterated a Buy rating on APLD stock with a price target of $58, calling it a “top pick.” Aftahi highlighted that Q3 FY26 will be the first full quarter of lease revenue. He added that CoreWeave’s (CRWV) A3 credit upgrade may help lower APLD’s borrowing costs.
The analyst believes that the path is set for a “scalable platform,” given that Applied Digital has signed deals worth 600 MW of capacity and is well-positioned to deliver $1 billion in annualized NOI (net operating income) over five years.
With the DF1 project starting in Louisiana and Macquarie development financing already deployed, Aftahi expects a third hyperscaler lease announcement. The analyst expects management to reveal some lease deals in the earnings call. He intends to use any pullback in APLD stock as a buying opportunity.
AI Analyst Is Cautious on APLD Stock
Interestingly, TipRanks’ AI Analyst has a Neutral rating on Applied Digital stock with a price target of $25, indicating shares are almost fully priced at current levels. The AI Analyst’s rating is based on large losses, negative operating cash flow and free cash flow, and high leverage — despite strong revenue growth. While insights from the latest earnings call improve the outlook, given notable hyperscaler lease contracts and near-term revenue ramp expectations, execution and capital-cost risks remain. The AI Analyst also noted weak technicals.
Options Traders Anticipate a Major Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
According to TipRanks’ Options Tool, options traders expect about a 14.58% move in either direction in APLD stock in reaction to Q3 FY26 earnings. This implied move is lower than Applied Digital stock’s average post-earnings move (in absolute terms) of 22.76% over the past four quarters.
Is APLD Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Strong Buy consensus rating on Applied Digital stock based on eight unanimous Buys. The average APLD stock price target of $47.86 indicates about 90% upside potential.
