Key TakeawaysApplied Digital’s Q3 FY2026 earnings release is scheduled for after market close on Wednesday, April 8Analysts project revenue of approximately $75.5M, representing a ~43% year-over-year increase, alongside an expected adjusted loss of $0.15 per shareThis quarter represents the first complete period featuring lease revenue; Roth MKM maintains Buy rating with $58 price targetOptions market anticipates roughly ~14.58% stock movement following the earnings announcementAnalyst consensus shows Strong Buy with all 8 analysts rating it Buy; average target price suggests ~90% potential gainsApplied Digital is scheduled to announce its Q3 FY2026 financial results following today’s trading session on April 8. Despite experiencing a challenging period with shares declining more than 21% over the past three months, analyst sentiment remains optimistic.Applied Digital Corporation, APLDThe quarterly revenue forecast stands at approximately $75.5 million, marking a roughly 43% increase compared to the prior-year period. While this growth rate represents a deceleration from the previous quarter’s impressive 98.2% year-over-year expansion, market watchers view this as an expected evolution in the company’s business model.On the profitability front, the adjusted loss per share is anticipated to expand to $0.15 versus $0.08 in the comparable quarter last year. Applied Digital’s recent earnings track record shows misses on two occasions over the last four quarters, meeting expectations twice, with an average miss rate of nearly 17%.Investors are particularly focused on this quarter as it marks the initial complete period where lease revenue becomes the primary driver. The company previously relied heavily on tenant fit-out contributions, but this strategic transition is now fully in motion.Roth MKM’s analyst Darren Aftahi maintained his Buy recommendation with a $58 price objective ahead of today’s earnings event. He designated APLD as a “top pick” and noted that CoreWeave’s recent A3 credit rating improvement could potentially reduce Applied Digital’s financing expenses.Aftahi highlighted the firm’s 600 MW of contracted capacity and its capability to generate $1 billion in annualized net operating income within five years. He anticipates management will reveal at least one additional hyperscaler lease agreement during the earnings conference call.Profitability Headwinds PersistChallenges remain on the horizon. Substantial infrastructure expenditures and increasing interest costs associated with the company’s expanding debt obligations continue to compress margins.Rivals including Vertiv Holdings, nVent Electric, and Riot Platforms are strengthening their positions in data center and power-intensive computing infrastructure. This competitive landscape maintains pressure on both pricing and operational execution for Applied Digital.The company’s forward Price-to-Sales multiple stands at 14.2x, significantly exceeding the sector average of 2.59x. This valuation premium is challenging to support given the ongoing losses and lease revenue that’s still in its growth phase.AI-Driven Analysis PerspectiveTipRanks’ AI Analyst assigns a Neutral stance on APLD with a $25 price objective — essentially aligned with current trading levels. The analysis highlights substantial losses, negative operating and free cash flow, and elevated leverage as primary risk factors, notwithstanding robust revenue expansion.The AI model additionally identified unfavorable technical indicators leading into the earnings release.The options market is factoring in approximately 14.58% volatility in either direction post-earnings. Notably, this expectation falls short of APLD’s historical average post-earnings movement of 22.76% across the previous four quarters — suggesting potential underestimation of the actual market response.Among Wall Street analysts, all eight covering the stock maintain Buy recommendations. The consensus price target of $47.86 indicates approximately 90% upside potential from present levels.The DF1 facility in Louisiana is operational, Macquarie development financing has been secured, and management is expected to discuss new lease agreements and the roadmap to profitability during today’s conference call.The post Applied Digital (APLD) Q3 FY2026 Earnings Preview: What Investors Should Know appeared first on Blockonomi.