Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
AppLovin’s Q2 FY2026 was defined by explosive revenue growth driven by its AI-powered AppLovin Ads platform. The standout driver was a 58% year-over-year surge in net revenue per installation, as the AXON recommendation engine delivered superior advertiser outcomes, more than offsetting a modest decline in installation volumes. The quarter also saw record operating margins and robust free cash flow, enabling nearly $1.5 billion in share repurchases during the first half of the year. However, research and development costs more than doubled, largely from stock-based compensation, reflecting heavy investment in talent to sustain its technological edge.
Revenue
$1.92B
+52.82% YoY
EPS (Diluted)
$3.76
+57.32% YoY
Operating Income
$1.49B
+56.03% YoY
Source: SEC XBRL
AppLovin (APP) reported Q2 FY2026 revenue of $1.92B, up 52.8% year over year. Operating margin was 77.7%, up 1.6 points from 76.1% a year earlier. APP's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 3.76 | 3.76 | Beat +0.1% |
| Mar 2026 | 3.56 | 3.44 | Beat +3.6% |
| Dec 2025 | 3.24 | 2.96 | Beat +9.5% |
| Sep 2025 | 2.45 | 2.42 | Beat +1.0% |
Reported EPS of $3.76 versus the $3.76 analyst consensus — a +0.1% beat for Jun 2026.
Compiled by AI from 10-Q Item 2 of this filing
Revenue increased 53% YoY for Q2, primarily due to a 58% increase in net revenue per installation from improved AppLovin Ads performance, partially offset by a 2% decline in installation volume.
Source: 10-Q Item 2 MD&A
Research and development expenses rose 127% YoY, driven by a $54.8 million increase in personnel-related costs, largely stock-based compensation for engineering talent.
Source: 10-Q Item 2 MD&A
G&A expenses decreased 27% YoY due to a $9.5 million reduction in bad debt expense and lower professional services costs.
Source: 10-Q Item 2 MD&A
Other income swung from a $22.3 million loss to $62.4 million gain, reflecting a $31.3 million fair value gain on non-marketable equity securities and higher interest income on increased cash balances.
Source: 10-Q Item 2 MD&A
The company repurchased $1.5 billion of its Class A common stock during the first half of fiscal 2026, retiring 3.3 million shares, with $1.8 billion remaining under its buyback authorization.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
AppLovin relies heavily on platforms like Apple App Store and Google Play Store for app distribution and advertising data. Policy changes, such as Apple’s IDFA restrictions, could reduce ad targeting effectiveness and significantly harm revenue and operations.
Source: 10-Q Item 1A Risk Factors
The company’s success depends on CEO Adam Foroughi and a lean operational model. Loss of key executives or an inability to scale the workforce to match growth could disrupt strategy and limit expansion capabilities.
Source: 10-Q Item 1A Risk Factors
As an ad tech company processing vast amounts of user and client data, AppLovin faces persistent cyberattacks. A significant breach could lead to reputational damage, regulatory penalties, and loss of client trust.
Source: 10-Q Item 1A Risk Factors
The digital advertising landscape evolves quickly, and competitors may develop more effective AI or targeting solutions. Failure to continually innovate the Axon AI recommendation engine could lead to market share losses and fluctuating results.
Source: 10-Q Item 1A Risk Factors
A large portion of revenue comes from a limited number of major advertising clients, often without long-term agreements. Reduced spending or loss of any key client could materially impact financial performance.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.92 $B | 1.26 $B | +52.82% |
Cost of Revenue $M | 225.80 $M | 155.08 $M | +45.61% |
Operating Income $B | 1.49 $B | 0.96 $B | +56.03% |
Net Income $B | 1.27 $B | 0.82 $B | +54.54% |
EPS (Basic) $ | 3.77 $ | 2.42 $ | +55.79% |
EPS (Diluted) $ | 3.76 $ | 2.39 $ | +57.32% |
R&D Expense $M | 99.90 $M | 44.03 $M | +126.88% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
AppLovin (APP) delivered exceptional Q1 FY2026 results with revenue surging 59% YoY to $1.84B and net income more than doubling to $1.21B, driven by powerful operating leverage that pushed operating margins above 78%.
AppLovin (APP) delivered exceptional FY2025 results with revenue surging 70% to $5.48B and net income more than doubling to $3.33B, driven by explosive operating leverage that pushed operating margins to a remarkable 75.8%.
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