Applied Digital Is About to Report Q3 Earnings. Options Traders Expect a Major Move in APLD Stock

Applied Digital APLD +0.29% ▲ is scheduled to announce its results for the third quarter of Fiscal 2026 on April 8. The company is seeing strong demand for its high-performance data centers required for AI workloads. Despite high debt levels and profitability concerns, Wall Street is bullish on Applied Digital, given strong demand trends and lease contracts. According to TipRanks’ Options Tool, options traders expect about a 16.5% move in either direction in APLD stock in reaction to Q3 FY26 earnings.

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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.

Meanwhile, 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 +4.84% ▲ 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 $24.50, indicating shares are 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.

What Is the Price Target for APLD Stock?

Overall, Wall Street has a Strong Buy consensus rating on Applied Digital stock based on nine unanimous Buys. The average APLD stock price target of $54.25 indicates about 121% upside potential.

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