AppLovin reports Q3 revenue up 55% YoY to $2.18B, above $2.07B est., and forecasts Q4 revenue above estimates; APP surges 20%+ after hours (William Gavin/MarketWatch)

AppLovin's stock price surged nearly 20% in extended trading on Wednesday following the release of its third-quarter earnings results. The digital-marketing company reported revenue of $2.18 billion, marking a 55% increase compared to the same period in 2025 and exceeding the FactSet consensus estimate of $2.07 billion. Earnings per share (EPS) stood at $4.30, surpassing analysts' forecast of $4.03 per share and reflecting a 75% year-over-year increase.

Investors reacted positively to the strong performance, with the company's shares climbing an additional 10% during regular trading hours.

Despite the positive outlook, AppLovin's stock has faced a challenging year, falling 60% year-to-date and ranking as the worst performer within the S&P 500. However, the company's board of directors approved an additional $3.2 billion in stock buybacks, bringing the total authorization to $3.6 billion. As part of its Q3 earnings report, AppLovin forecasted fourth-quarter revenue of up to $2.39 billion, which also outpaced expectations of $2.25 billion from FactSet analysts.

While the stock gains were immediate, analysts remain cautious about the company's prospects. Raymond James analyst Andrew Marok noted that expectations are unsettled, and it may require more than one strong quarter to restore investor confidence. Following the earnings report, AppLovin's shares had already plummeted by 20% in the previous trading session, highlighting the volatility in the evolving narrative surrounding the company's future.