AppLovin Corporation (NASDAQ: APP) is scheduled to release its second quarter 2026 earnings after the market close with a stock that has found a semblance of support between $390-$400 leading in. Wall Street analysts expect the company to deliver strong year-on-year growth, though the stock price remains 22% lower over the past month amid broader uncertainty about artificial intelligence’s impact on legacy software business models.
The consensus points to an earnings per share of $3.75 for the June quarter, representing a 64% increase on the $2.39 reported this time last year. Revenue is expected to come in at $1.94 billion for the quarter, marking a 54% rise year-on-year. Wedbush has indicated that Q2 results are positioned to exceed the company’s own guidance, supported by continued strength in AppLovin’s core advertising platform.
Investors should pay close attention to the company’s software platform revenue, which has been the primary driver of growth over the past year. The advertising technology segment, including AppLovin’s AI-powered Axon platform used for app user acquisition and monetisation, will be particularly important given the company’s recent growth trajectory in mobile advertising demand.
Operating margins and guidance for the September quarter will also be closely watched. Management commentary on customer demand trends, platform adoption, and any impact from broader economic conditions will help frame expectations for the second half of the year.
Looking out to next year, the market is currently expecting Applovin to put up revenue of $10.62billion for FY27, a 29.78% sales growth rate, with EPS rising to $21.17.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
Despite recent sector-wide headwinds, AppLovin’s advertising technology platform has been seen as less exposed to these risks than some legacy software companies. The company’s AI-driven user acquisition and monetisation tools for mobile app developers operate in a different part of the value chain, and recent analyst commentary has suggested that demand for these services remains solid.
AppLovin has delivered strong revenue and earnings growth over the past year, driven primarily by its advertising platform business. The company’s Axon AI engine, which helps app developers optimise user acquisition and monetisation, has been a key contributor to this performance as mobile advertising demand has remained resilient.
Options markets are pricing a move of ~11% off the back of the print, setting the stage for another volatile session for holders. A retest of $480 on a strong reaction could be possible, whilst a breakdown to test $390 support cannot be discounted on a bearish print.
