AppLovin Stock Jumps After Hours as Q3 Revenue Rises 55%
AppLovin's Q3 revenue rose 55% to $2.18 billion and net income climbed 72%. Its Q4 revenue forecast topped estimates, and shares jumped after hours.
AppLovin reported third-quarter revenue of $2.18 billion on Wednesday, November 4, 2026, up 55% from a year earlier, and forecast fourth-quarter sales above Wall Street's expectations. The stock jumped in extended trading: it was up 19.23% at 5:09 p.m. ET, according to CappNotes, after already gaining 10.69% in the regular session. Investing.com described the after-hours gain as more than 16%.
The numbers
Measure | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | $2,185 million | $1,405 million | +55% |
Net income | $1,439 million | $836 million | +72% |
Adjusted EBITDA | $1,842 million | $1,158 million | +59% |
Diluted EPS | $4.30 | — | — |
Source: AppLovin's press release for the quarter ended September 30, 2026. The company said its net income margin was 66% and its adjusted EBITDA margin was 84%.
Analysts had expected EPS of $4.04 and revenue of $2.08 billion, according to Investing.com, which did not name the provider of the estimates.
Guidance and buybacks
For the fourth quarter, AppLovin guided to:
- Revenue: $2.365 billion to $2.395 billion
- Adjusted EBITDA: $1.995 billion to $2.025 billion, an 84% to 85% margin
Investing.com put the consensus for fourth-quarter revenue at $2.25 billion, so even the low end of the range sits well above that figure.
AppLovin also said it repurchased and withheld 4.1 million Class A shares in the quarter at a total cost of $1.4 billion, and its board raised the buyback authorization by $3.2 billion, to $3.6 billion in total as of the end of October. Operating cash flow and free cash flow were each $1.4 billion for the quarter, the company said.
What it means for investors
AppLovin sells software that helps businesses buy ads and reach customers, and almost every extra dollar of sales is turning into profit: an 84% adjusted EBITDA margin is extremely high for any company. That is why the forecast matters as much as the past quarter. When a company raises the bar for the next three months above what analysts expected, the stock often reacts more to the outlook than to the results.
Two cautions. After-hours moves happen on thin volume and can change by the next morning's open; our guide to stock market hours explains how extended trading works. And adjusted EBITDA is a company-defined measure, so read it next to GAAP net income, as our guide on how to read an earnings report explains. For the rest of the day's after-hours reports, see our story on Snap's third quarter.
This article is for information only and is not investment advice.
Sources
This article is for information only and is not investment advice. Do your own research before buying or selling any asset.