AppLovin Q3 FY2026: revenue up 55.5%, net income up 72.2%
AppLovin's fiscal 2026 third quarter was exceptional: revenue rose 55.5% to $2.18 billion and net income jumped 72.2% to $1.44 billion, a 66.0% net margin. The open question is the fourth quarter, where management guides $2.38 billion of revenue — roughly 43.6% growth. Read on for what drove the quarter, what the guide assumes and what the balance sheet quietly says.
1 · Expected vs. Actual
Free preview belowDiluted EPS was $4.30, up 75.5% from $2.45, slightly ahead of the 72.2% net income growth because the diluted share count fell to 334.8 million from 341.0 million. Net income of $1.44 billion equals a 66.0% net margin, and Adjusted EBITDA of $1.842 billion equals an 84.0% margin. Those are software-like margins on a much larger revenue base.
Revenue of $2.18 billion was up 55.5% from $1.405 billion a year earlier, extending a run of accelerating top-line growth. Cost of revenue was only $240.8 million, so gross margin reached 89.0%, and income from operations came in at $1.71 billion. Almost nothing leaks out between the top line and operating profit.
Management guided fourth-quarter revenue to $2.365–$2.395 billion and Adjusted EBITDA to $1.995–$2.025 billion, an 84%–85% margin. The revenue midpoint of $2.38 billion sits 8.9% above this quarter's $2.185 billion, which is a normal sequential step for this business. It is the year-over-year comparison that raises a question, not the quarter-to-quarter one.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-04
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