AppLovin (NASDAQ:APP) Releases Earnings Results, Beats Estimates By $0.27 EPS

AppLovin (NASDAQ:APP) issued its quarterly earnings results on Wednesday. The company reported $4.30 earnings per share for the quarter, topping analysts’ consensus estimates of $4.03 by $0.27, FiscalAI reports. The firm had revenue of $2.18 billion for the quarter, compared to analysts’ expectations of $2.07 billion. AppLovin had a return on equity of 196.31% and a net margin of 65.89%. AppLovin’s revenue was up 55.5% on a year-over-year basis. During the same quarter last year, the business posted $2.45 EPS.

Here are the key takeaways from AppLovin’s conference call:

• AppLovin reported record Q3 revenue of $2.18 billion, up 55% year over year, and adjusted EBITDA of $1.84 billion, up 59%; both exceeded the high end of guidance. Gaming growth reaccelerated with model improvements, while consumer-advertiser spending continued to scale.
• The company has partially rolled out its next-generation models and said early performance has improved advertisers’ ability to spend profitably. Management sees more optimization potential than in the prior architecture, but did not give a timeline for completing the rollout or promise a cadence of future gains.
• Q4 guidance calls for revenue of $2.365–$2.395 billion and adjusted EBITDA of $1.995–$2.025 billion, implying 43%–44% and 43%–45% year-over-year growth, respectively. At the midpoint, management’s outlook implies full-year 2026 revenue and adjusted EBITDA growth above 50%.
• AppLovin generated $1.4 billion in Q3 free cash flow and repurchased or withheld $1.4 billion of shares; its board added $3.2 billion to the buyback authorization. Management also noted that consumer advertising is seasonal, some less-sophisticated advertisers still need support to succeed, and CTV remains an early-stage opportunity that should not be expected to contribute materially soon.

AppLovin Stock Up 10.8%

NASDAQ:APP traded up $38.39 on Friday, hitting $394.49. 6,732,516 shares of the company’s stock traded hands, compared to its average volume of 5,598,886. The company has a market cap of $132.02 billion, a PE ratio of 26.47, a price-to-earnings-growth ratio of 0.60 and a beta of 2.51. AppLovin has a 1 year low of $225.19 and a 1 year high of $738.01. The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11. The firm has a 50-day moving average price of $291.78 and a 200-day moving average price of $410.78.

More AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported third-quarter revenue of $2.18 billion, up 55.5% year over year, and EPS of $4.30, beating analyst estimates. Net income rose 72% to about $1.44 billion, reflecting strong growth and profitability. AppLovin Stock What Changed After Its Earnings Beat
• Positive Sentiment: Fourth-quarter revenue guidance of $2.365 billion to $2.395 billion came in above market expectations. The company also expanded its share-repurchase authorization to $3.6 billion, adding a potential source of demand for shares. AppLovin Q3 2026 Earnings Call Highlights
• Positive Sentiment: Analysts at RBC and Oppenheimer raised their price targets to $520 and maintained “outperform” ratings, signaling confidence in further growth as the company continues rolling out its advertising models. AppLovin’s Q3 Outperformance Supports Further Growth, RBC Says
• Negative Sentiment: Several law firms publicized a pending securities class action covering investors who bought shares from February 12 to August 5, 2026. The suit alleges AppLovin made misleading statements about the readiness and adoption of its AI models and self-service ad tools. The allegations are not findings of wrongdoing, but the case adds legal and reputational risk; the lead-plaintiff deadline is November 16. AppLovin Facing Securities Fraud Class Action
• Negative Sentiment: Wells Fargo raised its price target from $325 to $347 but kept an “equal weight” rating; its target remains below the quoted share price, suggesting limited upside in the firm’s view. Wells Fargo AppLovin Rating

Analyst Ratings Changes

Several brokerages have commented on APP. Royal Bank Of Canada raised their target price on shares of AppLovin from $500.00 to $520.00 and gave the stock an “outperform” rating in a report on Thursday. William Blair set a $440.00 price target on shares of AppLovin in a report on Monday, August 17th. Wells Fargo & Company upped their price target on shares of AppLovin from $325.00 to $347.00 and gave the company an “equal weight” rating in a research report on Friday. Bank of America lowered shares of AppLovin from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $430.00 to $400.00 in a research note on Tuesday, August 11th. Finally, Benchmark lowered their price objective on shares of AppLovin from $500.00 to $440.00 and set a “buy” rating on the stock in a research report on Monday, August 17th. Three analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $497.93.

AppLovin Company Profile

AppLovin is a technology company that provides software to help mobile app developers and advertisers grow their businesses. Its platform connects advertisers seeking users with app publishers looking to monetize their audiences, using data and machine-learning tools to support advertising and user acquisition.

The company’s products include AXON, its advertising optimization engine; AppDiscovery, which helps advertisers find and acquire users; and MAX, a platform for managing in-app advertising.