Applied Digital Could Have 155% Upside Ahead of July 27 Q2 Earnings

Applied Digital’s reported momentum ahead of its July 27 Q2 earnings date is framed around a contractual data-center buildout model. The company, NASDAQ: APLD, develops and operates specialized data centers, earning by leasing computing capacity to AI and high-performance computing customers. It cites $16 billion in aggregate prospective lease revenue already signed and 15-year hyperscaler leases underwriting the capacity expansion, with management targeting $1 billion in NOI within five years. In its Q3 FY2026 results, revenue reached $126.64 million, up 139.3% year over year, and adjusted EBITDA rose to $44.14 million from $6.26 million. Adjusted EPS was $0.09 versus a -$0.21 consensus, marking a fourth straight earnings beat. The article notes a $76.70 target versus a $30.08 price and contrasts APLD with IREN, which reported flat quarterly revenue growth. Key risks cited include GAAP losses and CoreWeave concentration, offset by $1.73 billion in cash and financing plans tied to 6.750% senior secured notes.