Applovin Corp (APP) Earnings Beat Projections

Core Viewpoint - Applovin Corp (NASDAQ:APP) is identified as a strong investment opportunity within the S&P 500, particularly following a recent 37% stock price drop, which Jefferies views as a buying opportunity, maintaining a Buy rating with a price target of $860 [1][5]. Financial Performance - Applovin reported Q4 2025 results with a 66% year-over-year revenue increase to $1.66 billion, surpassing Wall Street's expectation of $1.61 billion. The earnings per share (EPS) was $3.24, exceeding the forecast of $2.96. Free cash flow rose by 88% to $1.31 billion, increasing total cash on hand to $2.5 billion [3][4]. - For Q1 2026, Applovin anticipates revenue between $1.745 billion and $1.775 billion, indicating a sequential growth of 5% to 7%. Adjusted EBITDA is expected to be in the range of $1.465 billion to $1.495 billion, with an EBITDA margin of 84% [5]. Investment Returns - In Q4 2025, Applovin returned $481.7 million to investors through share repurchases, totaling $2.58 billion for the full year [4]. Market Position and Growth Potential - Analysts believe that concerns regarding CloudX, Meta Audience Network, and Google Genie are overstated, and they expect Applovin's tools, particularly in AI for gaming, to enhance its market position and drive revenue growth with high margins [2]. - The company is recognized for its marketing technology solutions that assist businesses in customer acquisition and revenue enhancement [6].