AppLovin (APP) Q3 2026 Earnings Review: advertising growth lifts profit and cash flow

Q3 2026 earnings recap

AppLovin’s advertising revenue grew 55% and profit margins improved, helping shares rise about 22.6% after the results as its next-quarter sales outlook topped market expectations.

• Reported profit per share of $4.3 beat the $4.03 forecast, while revenue of $2.19 billion exceeded the roughly $2.07 billion estimate.
• Net profit rose 72% to $1.44 billion, with the profit margin reaching 66% from 59%, showing that earnings grew faster than sales.
• The company expects fourth-quarter revenue of $2.37–$2.4 billion, above the roughly $2.25 billion market forecast and signaling further growth from the third quarter.
• Quarterly free cash flow reached $1.42 billion, supporting share repurchases as the board added $3.2 billion to its authorization and brought the available total to $3.6 billion at October’s end.
• The November 4 regular close valued the shares at about 18.3 times trailing reported profit, but the subsequent after-close rally increased the price investors pay for that earnings base.
• The stock gained 10.7% during regular trading before results and closed above its 20-day average but below its 50-day average, making the next regular close an important check on the rebound.

Watch whether fourth-quarter sales meet the new outlook and convert into cash, because advertising competition, weaker customer spending or changing platform rules could pressure growth and margins.