AppLovin Earnings: Q3 Revenue Jumps 55% to $2.18B, Stock Surges

AppLovin, the advertising technology company, reported a much stronger third quarter than Wall Street expected on November 4, 2026. Revenue rose 55% to $2.18 billion and net income climbed 72% to $1.44 billion, while a bright fourth-quarter forecast and a bigger share buyback sent the stock sharply higher. The results stood out on a day when many technology shares were under heavy pressure.

What did AppLovin report?

For the three months to the end of September, AppLovin’s revenue was $2.18 billion. That was up 55% from a year earlier and 14% from the second quarter. Analysts had expected about $2.07 billion, and the result came in roughly $100 million above the top of the company’s own guidance range.

Net income rose 72% to $1.44 billion. Diluted earnings per share were $4.30, up from $2.45 a year earlier and ahead of a consensus estimate of about $4.03. According to 24/7 Wall St., the earnings figure included about $86 million of other income.

AppLovin’s business is highly profitable. Adjusted EBITDA, a measure of operating profit before certain costs, rose 59% to $1.84 billion, giving a margin of 84%. Operating income was $1.71 billion. Free cash flow came to $1.4 billion, equal to 77% of adjusted EBITDA.

Key numbers

• Revenue: $2.18 billion, up 55%.
• Net income: $1.44 billion, up 72%.
• Diluted EPS: $4.30, versus $2.45 a year earlier.
• Adjusted EBITDA: $1.84 billion, an 84% margin.
• Free cash flow: $1.4 billion.

What is driving growth?

On the earnings call, management said advertising spending from consumer and ecommerce brands grew by triple-digit percentages compared with a year earlier. That points to growing demand from retail brands for AppLovin’s advertising tools.

The company is led by chief executive Adam Foroughi, with Matt Stumpf as chief financial officer.

What is AppLovin’s outlook?

For the fourth quarter of 2026, AppLovin expects:

• Revenue of $2.365 billion to $2.395 billion, up 43% to 44% from a year earlier.
• Adjusted EBITDA of $1.995 billion to $2.025 billion.

StockStory, writing on Yahoo Finance, put the analyst consensus for fourth-quarter revenue at about $2.25 billion, well below AppLovin’s forecast range.

Management also warned that advertising follows a seasonal pattern. On the call, Foroughi said investors “should see bigger Q4s followed by tougher Q1s,” reflecting heavy holiday spending followed by a slower start to each year.

How big is the buyback?

AppLovin bought back or withheld 4.1 million shares for $1.4 billion during the third quarter. The board added $3.2 billion to the buyback authorization, leaving a total of $3.6 billion available at the end of October.

Since the repurchase program began, the company has bought back 104 million shares for $9.4 billion. It had 331 million shares outstanding at the end of the period.

How did the stock react?

AppLovin shares rose 24.9% to $339.10 straight after the report, according to Yahoo Finance. 24/7 Wall St. reported the shares trading about 30% higher, at around $354, on the morning of November 5.

The gain came on the same day that the Nasdaq Composite fell more than 5% in a broad selloff of chip and AI-related stocks, which made AppLovin’s gain stand out.

Why it matters

AppLovin’s results suggest that demand for performance-based digital advertising remains strong heading into the holiday season. The jump in spending from ecommerce brands is also notable for online retailers heading into the holiday shopping season.

For investors, the combination of fast growth, very high margins and large buybacks explains why the company has become one of the most closely watched names in advertising technology.

What happens next?

Investors will now look for AppLovin to deliver on its fourth-quarter forecast, which covers the busiest advertising period of the year. They will also be watching how sharp the seasonal slowdown is in the first quarter of 2027, which management has already flagged.