AppLovin Q2 2026 Earnings: Revenue Grows 53% but Falls Short of Guidance
AppLovin's Q2 2026 revenue grew 53% year-over-year but missed its own guidance and estimates, while EPS roughly matched forecasts; shares dropped despite continued high profitability and an upbeat Q3 outlook.
| Q2 2026 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $3.76 | $3.76 | +0.1% |
| Revenue | $1.92B | $1.95B | -1.6% |
Key takeaways
- Revenue climbed 53% year-over-year to $1.92 billion, but landed just short of both Wall Street’s revenue estimate and the low end of management’s own guidance range. The company said the shortfall came from a slower-than-usual pace of updates to its AI-driven ad-matching models during the quarter, not from weaker advertiser demand.
- Earnings per share of $3.76 came in essentially in line with (slightly above) analyst estimates. The strong bottom line reflects AppLovin’s very high profitability at scale: over the trailing year the company has kept operating margins above 77% and net profit margins near 64%, meaning a large share of each advertising dollar flows through to profit once its ad-matching software is built and running.
- Management pointed to its push beyond mobile-game advertising into e-commerce and broader consumer advertising as the next growth leg. CEO Adam Foroughi said advertiser spending in that consumer/e-commerce business hit a fresh record, running about 28% above the seasonal peak from the fourth quarter, even though he cautioned that scaling this newer business “takes time.”
- For the current quarter, AppLovin guided to revenue of $2.055 billion to $2.085 billion (46%-48% growth from a year earlier) and adjusted EBITDA of $1.71 billion to $1.74 billion, with management citing newly released ad-model improvements now live as a driver of the expected reacceleration.
- Shares fell sharply in the session after the report, as investors focused on the revenue miss against high expectations for the stock rather than the year-over-year growth itself.
- On the earnings call, management also addressed a previously disclosed SEC inquiry, saying it was a voluntary information request that the SEC has since closed with no recommended enforcement action.
Q2 2026 in context
| Metric | Jun 2026 | Jun 2025 | Change |
|---|---|---|---|
| Revenue | $1.9B | $1.3B | +52.8% |
| Net income | $1.3B | $820M | +54.5% |
| Diluted EPS | $3.76 | $2.39 | +57.3% |
| Gross margin | 88.3% | 87.7% | +0.6 pts |
| Operating margin | 77.7% | 76.1% | +1.6 pts |
| Net margin | 65.8% | 65.1% | +0.7 pts |
Figures for the quarter ended Jun 2026 and the quarter ended Jun 2025, as reported to the SEC.
How the stock took it
Applovin Corp closed at $419.70 on Aug 4, 2026, the last session before the report, and at $335.67 on Aug 6, 2026, the first session after it — -20.0% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| May 6, 2026 | $478.11 | $498.87 | +4.3% |
| Nov 5, 2025 | $608.68 | $621.36 | +2.1% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 88.4% | Trailing 12 months |
| Operating margin | 77.1% | Trailing 12 months |
| Net profit margin | 64.3% | Trailing 12 months |
| Pretax margin | 74.5% | Trailing 12 months |
| EPS | $11.65 | Trailing 12 months |
| Revenue growth (YoY) | 66.4% | Trailing 12 months |
| EPS growth (YoY) | 110.3% | Trailing 12 months |
| Return on equity | 222.0% | Trailing 12 months |
Sources: company report · earnings call · financial news coverage