TLDR
- AppLovin (APP) posted Q3 EPS of $4.30 on revenue of $2.18 billion, topping estimates.
- Free cash flow hit $1.4 billion, up from $863 million in Q2.
- The buyback authorization grew by $3.2 billion to $3.6 billion.
- Q4 revenue guidance of $2.365 billion to $2.395 billion beat the $2.25 billion consensus.
- The stock rose 24% after hours following a 10% gain in the regular session.
AppLovin (APP) delivered a third quarter that landed well above Wall Street’s forecasts. The stock closed Wednesday up more than 10%, then climbed as much as 24% in after-hours trading.
Even with that pop, the stock is still down about 60% for the year. Traders had been waiting for proof that the AI engine behind the business was still firing.
Earnings per share came in at $4.30. Analysts were looking for roughly $4.03 to $4.04.
APPLOVIN $APP Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $2.18B (Est. $2.08B) 🟢; +55% YoY
🔹 EPS: $4.30 (Est. $4.04) 🟢; +76% YoY
🔹 Adj. EBITDA: $1.84B (Est. $1.73B) 🟢; +59% YoY
🔹 Net Income: $1.44B (Est. $1.37B) 🟢; +72% YoYQ4 Guide:
🔹 Revenue: $2.37B-$2.40B (Est. $2.25B) 🟢… pic.twitter.com/GDumOXeEJ9— Wall St Engine (@wallstengine) November 4, 2026
Revenue reached $2.18 billion, up 55% from a year earlier. The consensus estimate sat between $2.08 billion and $2.1 billion, depending on the source.
Profit Margins Stand Out
Net income rose 72% year over year to $1.44 billion. That works out to a 66% net income margin.
Adjusted EBITDA margin came in at 84%. Those are rare numbers for an ad business of this size.
Revenue growth also sped up a little. In the second quarter, sales had risen 53% from a year earlier.
Analysts had questioned whether AppLovin’s AI ad models could keep improving. Better models need more computing power, and that costs money.
The cash numbers speak to that worry. Free cash flow reached $1.4 billion, up from $863 million in the second quarter.
Operating cash flow matched that figure at $1.4 billion. In other words, the company paid for the extra computing and still brought in more cash.
Buybacks and Outlook
The company put that cash to work. It bought back and withheld 4.1 million Class A shares during the quarter for $1.4 billion.
At quarter end, AppLovin had 331 million Class A and Class B shares outstanding. The board then raised its buyback authorization by $3.2 billion, bringing the total to $3.6 billion as of the end of October.
Management said the move reflects “continued confidence” in the business. The company is also pushing beyond gaming into retail and e-commerce advertising.
Looking ahead, AppLovin expects fourth-quarter revenue of $2.365 billion to $2.395 billion. The Street was at $2.25 billion.
That guide also sits above the pace set by the company’s own prior outlook. Results for the third quarter had already topped what management projected in the second.
The latest after-hours move was reported on Wednesday evening, with gains ranging from 16% to 24% depending on the source. Regular-session trading on Thursday will show where the stock settles.
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