Applovin Corp (APP) Earnings Beat Projections

Applovin Corp (NASDAQ:APP) is among the best S&P 500 stocks with highest upside potential. Jefferies said on February 9 that the recent 37% drop in Applovin Corp (NASDAQ:APP) stock is a buying opportunity. The firm kept its Buy rating and $860 price target, pointing to strong growth potential and noting that short‑term worries have pushed the valuation below fundamentals.

Analysts argued that risks tied to CloudX, Meta Audience Network, and Google Genie are overstated. They expect AppLovin’s tools, including AI in gaming, to strengthen its position and see more upside through strong revenue growth and high margins, making the pullback an attractive entry point.

Applovin released its Q4 2025 results on February 11. It posted a 66% YoY jump in revenue to $1.66 billion, exceeding $1.61 billion that Wall Street anticipated. EPS came in at $3.24, surpassing the $2.96 forecasted. Free cash flow jumped 88% to $1.31 billion, lifting total cash on hand to $2.5 billion. These strong results came amid the company’s continued expansion on self-service e-commerce and AI platforms.

Applovin returned $481.7 million to investors through share repurchases in Q4 and $2.58 billion in full-year 2025.

“The combination of growth, profitability, Free Cash Flow, and capital returns we’re delivering is extraordinarily rare,” Applovin CEO Adam Foroughi commented.

In Q1 2026, AppLovin is shooting for revenue in the range of $1.745 billion and $1.775 billion, which indicates sequential growth of 5% to 7%. It sees adjusted EBITDA coming in the band of $1.465 billion to $1.495 billion with margin of 84%.

Following earnings, Jefferies cut its price target on the stock to $700 from $860, while maintaining a Buy rating. Separately, citing AppLovin’s robust Q4 results, Benchmark reaffirmed its Buy rating on the stock with a price target of $775.

Applovin Corp (NASDAQ:APP) is a provider of marketing technology. It helps businesses attract customers, boost revenue, and track how ads are performing on multiple platforms. The company was founded in 2012 and is headquartered in Palo Alto, California.

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Disclosure: None. This article is originally published at Insider Monkey.