AppLovin Shares Jump Nearly 30% as Revenue Rises 55% and Buyback Grows by $3.2 Billion

The company's earnings release, filed with the US Securities and Exchange Commission, put revenue for the quarter to September 30 at $2,184.8 million, against $1,405.0 million a year earlier. Net income rose 72% to $1,438.9 million, a net margin of 66%, and diluted earnings were $4.30 a share. Adjusted EBITDA grew 59% to $1,842.2 million, an 84% margin. Free cash flow was $1,418.4 million.

The results beat expectations. Analysts had forecast revenue of $2.07 billion and earnings of $4.04 a share, according to Gulf News. The rally came on the same day the Nasdaq Composite fell 5.5% in a sell-off driven by fears of tougher US rules on AI. Before the report, AppLovin's shares had lost more than half their value in 2026.

AppLovin forecast fourth-quarter revenue of $2,365 million to $2,395 million and adjusted EBITDA of $1,995 million to $2,025 million, which implies an adjusted EBITDA margin of 84% to 85%. Gulf News reported that the revenue guidance implies growth of 43% to 44%, against an analyst consensus of about $2.25 billion.

The release does not mention artificial intelligence. Management said more on the company's call, according to Gulf News. Its gaming advertising business grew nearly 50% from a year earlier and sped up as the company partly rolled out its next-generation AI models. Spending in its consumer category, which serves advertisers outside gaming, rose by triple digits. Management said the full rollout of the new models has not yet happened. AppLovin had planned earlier this year to open its Axon advertising platform to self-serve advertisers worldwide.

The buyback is the clearest sign of how management views the stock. AppLovin repurchased or withheld 4.1 million Class A shares for about $1.4 billion during the quarter, according to the release. The board's latest approval brings the remaining authorisation to $3.6 billion as of the end of October. The company cited "continued confidence in the Company's future" as the reason. Chief financial officer Matt Stumpf said the company sped up its buying because of a gap between the share price and what management sees as the company's intrinsic value, Gulf News reported. Since the programme began, AppLovin has bought back 104 million shares for $9.4 billion, an average of about $90 each.

The company ended the quarter with 331 million Class A and Class B shares outstanding. Some brokerages raised their price targets after the report, including one move to $450 from $396 with a buy rating kept, according to Gulf News.

The next test is whether the new AI models, once fully rolled out, and the opening of Axon to self-serve advertisers outside gaming can keep growth near the levels guided for the fourth quarter.