AppLovin Stock Soars 23% After Q3 Earnings Beat

AppLovin shares surged nearly 23% in extended Wednesday trading after the digital-marketing company beat Wall Street estimates on both revenue and earnings, delivering what Evercore ISI analyst Robert Coolbrith called "clearly positive results."

The rally marks a sharp turn for a stock that entered the report as the worst performer in the S&P 500 this year, down 60% since January. The after-hours gains stack on top of a 10% climb during Wednesday's regular session.

What did AppLovin report?

The company posted third-quarter revenue of $2.18 billion, up 55% from the same period a year earlier and ahead of the $2.07 billion consensus view compiled by FactSet. Earnings per share came in at $4.30, beating the $4.03 analysts expected and climbing 75% year over year.

AppLovin builds advertising and monetization technology for mobile apps, a business that has grown fast even as its stock has cratered in 2026.

Management paired the beat with a bullish forecast. The company guided fourth-quarter revenue to as much as $2.39 billion, above the $2.25 billion FactSet consensus.

How big is the buyback expansion?

The board authorized up to $3.2 billion in additional stock repurchases, lifting the total authorization to $3.6 billion. AppLovin said the move reflects "given continued confidence" in its future, according to a company statement.

The company has already been putting capital to work. It repurchased $1.4 billion worth of shares in the third quarter alone.

Why was the stock down 60% this year?

Investor sentiment toward AppLovin soured long before Wednesday. The company's previous earnings report rattled shareholders, knocking shares down 20% in the session that followed the release.

Not everyone is convinced one strong quarter fixes the damage. Ahead of the report, Raymond James analyst Andrew Marok wrote that "expectations are unsettled right now and it will likely take more than one good quarter to reassure investors."

What happens next?

The fourth-quarter guidance of up to $2.39 billion gives AppLovin a chance to deliver that second consecutive beat Marok says investors need. With $3.6 billion in total buyback firepower and shares still down roughly 60% on the year even after the pop, the stock's recovery now hinges on whether Wednesday's numbers mark a trend rather than an outlier.