AppLovin reported third quarter earnings on November 4 that beat Wall Street on nearly every line, and the market reacted fast. Revenue reached $2.185 billion, up 55 percent from a year earlier, while earnings per share came in at $4.30 against a $4.03 forecast. Net income jumped 72 percent to $1.44 billion. Shares, which had already risen 10.7 percent in the regular session to $271.75, climbed about 23 percent more after hours to around $334. For a stock that had fallen close to 60 percent in 2026, it was a sharp reversal and a clear signal that investors liked what they saw.
Quick Facts
| Detail | What happened |
|---|---|
| Company | AppLovin |
| Quarter reported | Third quarter, reported November 4 |
| Revenue | $2.185 billion, up 55 percent year over year |
| Revenue forecast | Wall Street expected $2.07 billion |
| Earnings per share | $4.30, against a $4.03 forecast |
| Net income | $1.44 billion, up 72 percent from $836 million a year earlier |
| Adjusted EBITDA | $1.842 billion, up 59 percent, an 84 percent margin |
| Free cash flow | About $1.42 billion, up 35 percent |
| Regular session move | Shares closed up 10.7 percent at $271.75 |
| After hours move | Shares rose about 23 percent to about $334 |
| Fourth quarter revenue guidance | $2.365 billion to $2.395 billion, above the $2.25 billion consensus |
| Fourth quarter adjusted EBITDA guidance | $1.995 billion to $2.025 billion |
| Buybacks | Board added $3.2 billion in authorization, total $3.6 billion, after $1.4 billion spent in the third quarter |
| Year to date before the report | Stock down about 59 to 60 percent in 2026, the worst performer in the S and P 500 |
| 2025 closing price | $673.82 |
A Record Quarter in Numbers
AppLovin did not just beat the forecast. It beat it by a wide margin on the top line and the bottom line at the same time, and that combination is rare enough to move a stock hard. Revenue of $2.185 billion came in about $115 million above the $2.07 billion consensus, and the 55 percent year over year growth rate is strong for a company of this size. Earnings per share of $4.30 topped the $4.03 forecast, and net income of $1.44 billion rose 72 percent from $836 million in the same quarter a year ago. Those are not small improvements. They point to a business that is growing fast and keeping more of each dollar it brings in.
The profit picture looked just as strong. Adjusted EBITDA reached $1.842 billion, up 59 percent from a year earlier, and the 84 percent margin shows how much of the revenue turns into operating profit before interest, taxes, depreciation and amortization. Free cash flow of about $1.42 billion, up 35 percent, adds to the same story. Cash flow matters because it is the money the company can actually use, whether for buybacks, investment or simply building strength on the balance sheet. When revenue, profit and cash flow all rise together, investors tend to pay attention, and that is exactly what happened here.
Why the Stock Jumped So Hard
The size of the move tells its own story. Shares closed the regular session up 10.7 percent at $271.75, then rose about 23 percent more after hours to around $334. Some trackers showed the after-hours peak near 36 percent, which underlines how fast sentiment shifted once the numbers were out. A move of that size does not happen on a small beat alone. It happens when a beat meets a stock that many investors had written off, and when the outlook removes a big part of the doubt.
Before the report, AppLovin had fallen about 59 to 60 percent in 2026, making it the worst performer in the S and P 500 for the year. It closed 2025 at $673.82, so the fall had wiped out more than half of its value. When a stock has fallen that far, even a solid report can trigger a sharp rebound because short sellers rush to cover and sidelined buyers step back in. The third quarter report gave both groups a reason to act at the same time. Strong revenue, strong profit, strong cash flow and a stronger outlook is a hard set of results to argue against.
Gaming Still Powers the Engine
Behind the headline numbers, the growth came from the parts of the business that AppLovin is best known for. Core mobile gaming revenue rose nearly 50 percent, which is a strong result for a segment that many investors watch closely. Mobile gaming is a competitive market, and growth at that pace suggests the company is holding its position and finding new ways to reach players and advertisers. It also shows that the core business is not slowing down, even as the company pushes into new areas.
The other driver was consumer-advertiser spend, which rose by triple digits year over year. In plain terms, that means spending from advertisers trying to reach consumers more than doubled. That kind of growth points to demand for AppLovin’s advertising tools, and it fits with the wider story of the quarter, which is that advertisers are spending more through the platform. When both the gaming side and the advertising side grow at the same time, the result is the kind of revenue jump AppLovin just reported.
Buybacks and a Bigger Cash Pile
AppLovin also gave shareholders another reason to cheer. The board added $3.2 billion in buyback authorization, taking the total to $3.6 billion. That came after the company spent $1.4 billion repurchasing shares in the third quarter alone. Buybacks reduce the number of shares in the market, which can lift earnings per share and, in many cases, support the share price. When a company buys back stock at this scale, it is also sending a message about its own view of the value of its shares.
The buyback news fits with the cash flow picture. Free cash flow of about $1.42 billion, up 35 percent, gives the company room to return money to shareholders while still investing in the business. That is an important point. A buyback funded by strong cash flow is very different from one funded by debt, and AppLovin’s numbers suggest the cash is there. Investors often read a large authorization as a sign that management believes the stock is undervalued, and after a fall of close to 60 percent in 2026, that message would not be hard to understand.
What the Guidance Tells Investors
The outlook for the fourth quarter was one of the strongest parts of the report. AppLovin guided revenue to a range of $2.365 billion to $2.395 billion, which sits above the $2.25 billion consensus. Adjusted EBITDA guidance of $1.995 billion to $2.025 billion points to more profit growth as well. When a company beats the current quarter and then guides above the forecast for the next one, the market often treats it as a sign that the momentum is real.
Guidance matters because it shapes how investors value the stock. A single strong quarter can be dismissed as a good three months. A strong quarter plus a strong outlook is harder to dismiss, because it suggests the company sees demand continuing. In AppLovin’s case, the guidance implies another quarter of solid growth, and it comes at a time when the stock is still far below where it ended 2025. That gap is part of why the market reacted so strongly.
The Comeback Story After a Brutal Year
To understand why this report mattered so much, it helps to look back at the year AppLovin has had. The stock entered the report down about 59 to 60 percent for 2026, the worst performance in the S and P 500. It closed 2025 at $673.82, a level that now looks a long way above the price before the report. For most of the year, the story was one of falling confidence, and each drop made the next earnings report more important.
Earnings season often produces sharp moves, but few are as clear as this one. A company at the bottom of the S and P 500 for the year reported record revenue, beat profit forecasts, raised its outlook and expanded its buyback program, all in the same evening. Other earnings stories this season show how quickly sentiment can shift, as seen in Qualcomm’s fourth quarter results and the fall in its stock, and in the drop in Micron, SanDisk and SK Hynix shares after Qualcomm earnings. Even strong consumer names have faced pressure, as McDonald’s third quarter earnings showed with falling US sales.
Frequently Asked Questions
How much revenue did AppLovin report in the third quarter?
AppLovin reported revenue of $2.185 billion in the third quarter, up 55 percent year over year. That beat the $2.07 billion consensus forecast by about $115 million.
How much did AppLovin stock rise after the earnings report?
Shares closed the regular session up 10.7 percent at $271.75, then rose about 23 percent after hours to around $334. Some trackers showed the after-hours peak near 36 percent.
What is AppLovin’s guidance for the fourth quarter?
AppLovin guided fourth quarter revenue to a range of $2.365 billion to $2.395 billion, above the $2.25 billion consensus. Adjusted EBITDA guidance was set at $1.995 billion to $2.025 billion.
How much did AppLovin spend on buybacks in the third quarter?
AppLovin spent $1.4 billion repurchasing shares in the third quarter. The board then added $3.2 billion in buyback authorization, taking the total to $3.6 billion.
Sources
Morningstar reported the third quarter results on November 4, including revenue of $2.185 billion, earnings per share of $4.30, net income of $1.44 billion, the after-hours share move, the fourth quarter guidance and the buyback authorization. MarketBeat covered the adjusted EBITDA of $1.842 billion, the 84 percent margin and the growth in core mobile gaming and consumer-advertiser spend. The Motley Fool reported on the free cash flow of about $1.42 billion and the stock’s fall of about 59 to 60 percent in 2026, with the 2025 close at $673.82.
Final Thoughts
AppLovin’s third quarter was the kind of report that can change how investors see a company. Revenue hit a record, profit beat forecasts, cash flow stayed strong, guidance came in above expectations and the board added billions in buyback authorization. The stock had been the worst performer in the S and P 500 in 2026, down close to 60 percent, and it entered the report with little goodwill left. The after-hours jump to around $334 does not undo that fall, but it shows the market is ready to listen again when the numbers are this strong. The next test is simple: deliver on the fourth quarter guidance and keep the growth going.
