AppLovin Stock Rockets 33% as Record Quarter, Strong Outlook and $3.2 Billion Buyback Wow Wall Street

Shares of AppLovin Corp. soared nearly 33% on Thursday after the mobile advertising technology company posted record third-quarter results, issued a fourth-quarter forecast well above expectations and expanded its share buyback program.

AppLovin shares rose $89.03 to $360.78 in Thursday trading, with about 9.6 million shares changing hands, nearly double the stock's three-month average. The rally added roughly $22 billion to the company's market value, which climbed to about $120.7 billion.

The surge offered relief to battered shareholders. Even after Thursday's jump, the stock remains about 56% lower than a year ago. AppLovin's shares had been volatile this year, down more than 50% year-to-date before the report.

Record results

The Palo Alto, California-based company delivered its strongest quarter yet. Net income grew 72% from a year earlier to $1.44 billion on record revenue of $2.18 billion, up 55%, with a 66% net income margin and an 84% adjusted EBITDA margin.

The results topped forecasts. Earnings of $4.30 per share beat the analyst consensus of $4.04, and revenue surpassed the $2.08 billion estimate.

Profitability continued to climb. Adjusted EBITDA reached $1.84 billion, up 59% from $1.16 billion in the third quarter of 2025.

Outlook beats estimates

The forecast was the biggest driver of the rally. AppLovin projected fourth-quarter revenue of $2.37 billion to $2.40 billion, well above the $2.25 billion analysts had expected.

More buybacks

AppLovin is returning large amounts of cash to shareholders. The company generated $1.4 billion in free cash flow, repurchased 4.1 million shares for $1.4 billion, and its board approved an additional $3.2 billion in buyback authorization, bringing the total to $3.6 billion.

CEO owns last quarter's stumble

The results followed a disappointing second-quarter report that hurt the stock. Chief Executive Adam Foroughi blamed the company itself for last quarter's miss, calling it "our own foot fault," and said its new ad models are only partly rolled out.

Analysts turn more bullish

Wall Street responded with higher targets. BTIG raised its price target to $450 from $396 while maintaining a Buy rating, and Needham reiterated its Buy rating with a $475 target.

Some see the earlier selloff as excessive. TIKR noted the stock went into the report at about 13 times forward earnings, around half its five-year average of 25 times. With Thursday's gain, the shares trade at about 17.6 times trailing earnings.

What's next

Investors will watch whether AppLovin's new advertising models drive sustained growth as they roll out more broadly, and whether the company can maintain its extraordinary margins as it expands beyond mobile gaming into e-commerce advertising.