AppLovin increased its revenue in the third quarter of 2026 by 55 percent year-over-year to $2.185 billion.
GAAP earnings per
share of $4.30 exceeded market expectations of $4.03.
For the fourth quarter, the company forecasts revenue of $2.365 billion to $2.395 billion.
The Board of Directors increased the share repurchase authorization by $3.2 billion to a total of $3.6 billion.
Revenue and Earnings Exceed Expectations
AppLovin generated revenue of $2.185 billion in the quarter ended September 30. This represented a 55 percent increase over the same period last year and exceeded the expected $2.075 billion. GAAP earnings per share rose from $2.45 to $4.30; the forecast had been $4.03.
Net income increased by 72 percent to $1.439 billion. The net margin reached 66 percent. Adjusted EBITDA rose 59 percent to $1.842 billion, with a margin of 84 percent. Free cash flow totaled $1.4 billion.
Outlook and Share Buybacks
For the fourth quarter, AppLovin expects revenue of $2.365 billion to $2.395 billion. This range is above the previously cited market expectation of approximately $2.25 billion. Adjusted EBITDA is expected to reach $1.995 billion to $2.025 billion; the expected margin is 84 to 85 percent.
In addition, the Board of Directors approved an increase in the share repurchase authorization by $3.2 billion. As of the end of October, the total current authorization thus amounted to $3.6 billion. This represents an available limit and does not indicate that shares have already been repurchased in this amount.
Analyst Assessment: The significant outperformance and the outlook exceeding expectations point to sustained strong operational momentum. While they alleviate short-term doubts about growth and monetization, they do not yet answer the question of how well AppLovin can expand its business outside the gaming sector and hold its own against stiffer competition. For investors, this development means: The quarter delivers clearly positive results, but the long-term valuation also depends on whether growth extends beyond the core business.
Significant stock price reaction
