AppLovin Q2 Revenue Miss
Analysis based on 6 articles · First reported Aug 06, 2026 · Last updated Aug 11, 2026
AppLovin's stock fell sharply, reflecting investor disappointment over the revenue miss and weak guidance, and the sell-off was amplified by analyst downgrades and price target cuts. The event also raised concerns about the sustainability of high-growth AI adtech valuations, potentially affecting sentiment across the sector.
AppLovin reported second-quarter 2026 revenue of $1.92 billion, up 53% year over year but below the analyst consensus of $1.94 billion. The company attributed the miss to slower-than-normal improvement in its AI-driven advertising model, particularly in the gaming segment, while its consumer/e-commerce segment remained strong. Adjusted EBITDA rose 58% to $1.61 billion, and GAAP EPS increased to $3.76, slightly beating estimates. However, third-quarter revenue guidance of $2.055-$2.085 billion came in below consensus, and the company's long-term growth target of 30% annual growth was questioned by analysts. The stock plunged about 20% on the news, and multiple analysts downgraded the stock or cut price targets, including Wells Fargo, Piper Sandler Companies, Goldman Sachs, and Bank of America. AppLovin also repurchased 1.1 million shares during the quarter.
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