AppLovin (NASDAQ:APP) Posts Quarterly Earnings Results, Hits Estimates

AppLovin (NASDAQ:APP) posted its quarterly earnings data on Tuesday. The company reported $3.76 earnings per share for the quarter, hitting the consensus estimate of $3.76, FiscalAI reports. The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.94 billion. AppLovin had a return on equity of 219.37% and a net margin of 64.29%.The business’s quarterly revenue was up 52.8% on a year-over-year basis. During the same period last year, the company posted $2.39 EPS.

AppLovin Stock Down 19.7%

AppLovin stock traded down $82.31 during mid-day trading on Thursday, reaching $335.49. The stock had a trading volume of 3,821,512 shares, compared to its average volume of 5,625,824. The company has a 50-day moving average price of $484.79 and a two-hundred day moving average price of $466.38. The company has a market capitalization of $112.70 billion, a price-to-earnings ratio of 28.80, a PEG ratio of 0.69 and a beta of 2.54. AppLovin has a one year low of $337.42 and a one year high of $745.61. The company has a debt-to-equity ratio of 1.49, a current ratio of 3.24 and a quick ratio of 3.24.

Trending Headlines about AppLovin

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: AppLovin reported revenue of approximately $1.924 billion, up 52.8% year over year, and earnings of $3.76 per share, in line with consensus estimates. The company also delivered an 83.8% adjusted EBITDA margin, highlighting continued operating leverage. AppLovin Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The company’s financial position remains supportive of expansion, with roughly $3 billion in cash, $3.5 billion in debt and strong interest coverage. AppLovin is also opening its AXON Ads platform to self-service customers, potentially expanding beyond gaming into areas such as fintech and connected TV. AppLovin: A Dip We Were All Waiting For
• Positive Sentiment: Needham, BTIG and Bank of America retained buy ratings, although each reduced its price target. The lower targets still imply upside from the referenced $417.80 share price.
• Neutral Sentiment: Analyst sentiment became more divided. Wells Fargo reaffirmed an Equal Weight rating and cut its target to $357, while other firms continued to recommend buying the stock with materially lower targets.
• Neutral Sentiment: AppLovin said an SEC investigation involving the company has been closed, removing one potential overhang, although the news received less attention than the earnings disappointment. APP Stock Plunges After Revenue Miss and Soft Guidance
• Negative Sentiment: Second-quarter revenue fell short of Wall Street’s roughly $1.94 billion estimate, despite exceptional year-over-year growth. For the third quarter, management guided to $2.055 billion–$2.085 billion of revenue, with the midpoint slightly below the approximately $2.08 billion consensus. AppLovin Reports Second Quarter Revenue Below Wall Street Estimates
• Negative Sentiment: The revenue miss and cautious guidance overshadowed the earnings performance, triggering a large after-hours selloff and prompting concerns that AppLovin’s very high growth expectations had become difficult to exceed. AppLovin Second-Quarter Sales Gain and Soft Third-Quarter Outlook

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Wells Fargo & Company reiterated an “equal weight” rating and set a $357.00 price objective (down from $575.00) on shares of AppLovin in a report on Thursday. Scotiabank reiterated a “sector outperform” rating and set a $515.00 price target on shares of AppLovin in a research report on Thursday. Citigroup reaffirmed a “buy” rating on shares of AppLovin in a research note on Monday, June 22nd. Wedbush restated an “outperform” rating and set a $640.00 price target on shares of AppLovin in a research report on Thursday, May 7th. Finally, Piper Sandler downgraded AppLovin from an “overweight” rating to a “neutral” rating and set a $385.00 price objective on the stock. in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, AppLovin presently has an average rating of “Moderate Buy” and a consensus target price of $600.27.

Insiders Place Their Bets

In other AppLovin news, CFO Matthew Stumpf sold 9,052 shares of the company’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $600.00, for a total value of $5,431,200.00. Following the completion of the sale, the chief financial officer owned 177,450 shares in the company, valued at $106,470,000. This represents a 4.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CTO Vasily Shikin sold 62,804 shares of the business’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $484.42, for a total value of $30,423,513.68. Following the completion of the sale, the chief technology officer owned 3,189,739 shares in the company, valued at $1,545,173,366.38. This represents a 1.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 393,000 shares of company stock valued at $197,297,363. 12.81% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of APP. State Street Corp grew its stake in AppLovin by 111.1% in the 3rd quarter. State Street Corp now owns 11,852,466 shares of the company’s stock valued at $8,516,471,000 after acquiring an additional 6,237,051 shares during the period. Price T Rowe Associates Inc. MD grew its stake in shares of AppLovin by 3.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 6,089,735 shares of the company’s stock valued at $4,103,386,000 after buying an additional 212,349 shares in the last quarter. Morgan Stanley grew its position in AppLovin by 10.7% in the 4th quarter. Morgan Stanley now owns 5,561,646 shares of the company’s stock valued at $3,747,551,000 after acquiring an additional 538,806 shares in the last quarter. Bank of America Corp DE lifted its position in shares of AppLovin by 8.3% during the fourth quarter. Bank of America Corp DE now owns 3,610,573 shares of the company’s stock worth $2,432,876,000 after purchasing an additional 276,649 shares in the last quarter. Finally, Northern Trust Corp boosted its stake in shares of AppLovin by 1.1% in the fourth quarter. Northern Trust Corp now owns 2,399,504 shares of the company’s stock valued at $1,616,834,000 after purchasing an additional 25,044 shares during the period. 41.85% of the stock is owned by institutional investors and hedge funds.

About AppLovin

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.