TLDR
- Applied Digital reports Q3 FY2026 earnings after the bell on Wednesday, April 8
- Wall Street expects revenue of ~$75.5M, up ~43% year-over-year, with a wider adjusted loss of $0.15 per share
- Q3 marks the first full quarter of lease revenue; Roth MKM reiterates Buy with a $58 price target
- Options traders are pricing in a ~14.58% move in either direction post-earnings
- Wall Street holds a Strong Buy consensus with 8 unanimous Buy ratings; average price target implies ~90% upside
Applied Digital is set to report Q3 FY2026 results after the market closes today, April 8. The company has had a turbulent run lately â down over 21% in three months â but Wall Street hasn’t given up on it.
Applied Digital Corporation, APLD
Revenue for the quarter is expected to come in around $75.5 million, up roughly 43% from the same period last year. That’s a slowdown from last quarter’s 98.2% year-over-year jump, but analysts see it as part of a natural transition.
The adjusted loss per share is expected to widen to $0.15 from $0.08 a year ago. Applied Digital missed earnings estimates twice in the last four quarters, matching them the other two times, with an average negative surprise of nearly 17%.
This quarter is being watched closely because it’s the first full quarter where lease revenue takes center stage. Previously, the company leaned on tenant fit-out contributions. That shift is now underway.
Roth MKM analyst Darren Aftahi reiterated a Buy rating with a $58 price target going into today’s report. He called APLD a “top pick” and flagged that CoreWeave’s recent A3 credit upgrade could help lower Applied Digital’s borrowing costs.
Aftahi also pointed to the company’s 600 MW of contracted capacity and its potential to deliver $1 billion in annualized net operating income over five years. He’s expecting management to announce at least one new hyperscaler lease on the earnings call.
Margin Pressure Remains a Concern
It’s not all smooth sailing. Elevated infrastructure costs and rising interest expense tied to the company’s growing debt load are keeping margins under pressure.
Competitors like Vertiv Holdings, nVent Electric, and Riot Platforms continue to deepen their own data center and power-linked compute positioning. That’s keeping pricing and execution pressure high for Applied Digital.
The company’s forward Price-to-Sales ratio sits at 14.2x, well above the industry average of 2.59x. That premium is hard to justify on paper given the persistent losses and still-ramping lease revenue.
What the AI Analyst Says
TipRanks’ AI Analyst holds a Neutral rating on APLD with a $25 price target â basically where the stock is trading now. It cites large losses, negative operating and free cash flow, and high leverage as key concerns, despite strong revenue growth.
The AI model also flagged weak technical signals heading into the print.
Options traders are pricing in a move of about 14.58% in either direction after earnings. That’s actually below APLD’s average post-earnings swing of 22.76% over the past four quarters â so the market may be underestimating the reaction.
Across Wall Street, all eight analysts covering the stock have a Buy rating. The average price target of $47.86 represents roughly 90% upside from current levels.
The DF1 project in Louisiana is live, Macquarie development financing is deployed, and management is expected to address new lease deals and the path toward profitability on today’s call.
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