AppLovin (NASDAQ:APP) Issues Quarterly Earnings Results

AppLovin (NASDAQ:APP) issued its quarterly earnings data on Wednesday. The company reported $4.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.03 by $0.27, FiscalAI reports. The business had revenue of $2.18 billion for the quarter, compared to the consensus estimate of $2.07 billion. AppLovin had a return on equity of 193.10% and a net margin of 64.58%. The company’s quarterly revenue was up 55.5% compared to the same quarter last year. During the same period in the prior year, the business posted $2.45 earnings per share.

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 Trading Up 31.6%

Shares of NASDAQ:APP traded up $85.81 on Thursday, hitting $357.56. 5,669,630 shares of the company’s stock were exchanged, compared to its average volume of 5,498,593. The stock has a market capitalization of $119.66 billion, a price-to-earnings ratio of 27.75, a price-to-earnings-growth ratio of 0.55 and a beta of 2.51. AppLovin has a 12 month low of $225.19 and a 12 month high of $738.01. The company has a debt-to-equity ratio of 1.11, a current ratio of 4.30 and a quick ratio of 4.30. The business’s 50 day simple moving average is $290.82 and its two-hundred day simple moving average is $411.84.

Wall Street Analyst Weigh In

Several research firms have commented on APP. William Blair set a $440.00 price objective on shares of AppLovin in a research note on Monday, August 17th. Morgan Stanley lowered their target price on shares of AppLovin from $450.00 to $400.00 and set an “overweight” rating for the company in a report on Tuesday, October 13th. Evercore restated an “outperform” rating and issued a $510.00 target price (down from $630.00) on shares of AppLovin in a report on Tuesday, September 1st. Loop Capital dropped their price target on shares of AppLovin from $860.00 to $600.00 and set a “buy” rating for the company in a research note on Thursday, August 20th. Finally, Wells Fargo & Company reduced their price objective on shares of AppLovin from $357.00 to $325.00 and set an “equal weight” rating on the stock in a research report on Wednesday, August 19th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and eight have assigned a Hold rating to the stock. Based on data from MarketBeat, AppLovin presently has a consensus rating of “Moderate Buy” and an average target price of $496.61.

Key AppLovin News

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported Q3 revenue of $2.18 billion, up 55.5% year over year, and adjusted earnings of $4.30 per share, beating analyst estimates. Net income rose 72% to about $1.44 billion, highlighting the profitability of its advertising platform. Q3 results
• Positive Sentiment: Q4 revenue guidance of $2.365 billion to $2.395 billion came in above analyst expectations, supporting optimism that the company’s AI-driven advertising model can sustain growth. Q4 outlook
• Positive Sentiment: The company reported $1.4 billion in free cash flow and expanded its share-repurchase authorization to $3.6 billion, offering an additional potential source of shareholder returns. Earnings call highlights
• Positive Sentiment: BTIG raised its price target to $450 and reaffirmed a buy rating; Needham also maintained its buy rating with a $475 target. BTIG rating
• Negative Sentiment: Several law firms are publicizing a securities class action covering investors who purchased shares between February 12 and August 5, 2026. The suit alleges misleading statements about AI model readiness and adoption, as well as delays in AI advertising tools. The November 16 lead-plaintiff deadline could keep legal and reputational risks in focus. Class-action notice

About AppLovin

AppLovin Corporation is a technology company that provides software and services designed to help mobile application developers grow, monetize and operate their businesses. Its platform supports user acquisition, advertising, mediation, analytics and other functions across the mobile app ecosystem.

The company’s principal products include AppDiscovery, which helps developers market their applications and acquire users; MAX, an in-app bidding and monetization platform; and its AXON technology, an artificial intelligence-powered engine intended to improve advertising performance and match users with relevant applications and content.