AppLovin beats quarterly revenue estimates

Yahoo Finance • February 11, 2026 • business

Key Points:

AppLovin surpassed fourth-quarter sales expectations with $1.66 billion in revenue, exceeding the analyst estimate of $1.60 billion, driven by strong demand for its advertising services and AI-powered tools.
Despite the positive sales performance, AppLovin's shares dropped nearly 6% in extended trading due to concerns about rising competition and an uncertain macroeconomic environment.
Increased competition, particularly from major players like Meta Platforms bidding aggressively for Apple's iOS ad traffic, poses challenges by driving up ad auction prices and potentially compressing AppLovin's net margins.
The company reported an 84% increase in net income for the quarter, reaching $1.10 billion, reflecting strong profitability amid cautious spending trends across industries.