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AppLovin beats Q1 earnings on AI ad growth, raises Q2 outlook despite early share dip

Company Fundamentals
07 May 2026
Proactive Investors
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Bullish
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AppLovin reported strong Q1 results with revenue up 59% to $1.84 billion, driven by its AI-powered advertising business. Adjusted EPS was $3.56, beating estimates, while net income and EBITDA also saw significant growth. The company generated $1.3 billion in free cash flow and repurchased $1 billion in shares. For Q2, AppLovin expects revenue between $1.915 billion and $1.945 billion and an EBITDA margin of 84-85%. Despite the strong earnings, shares initially rose then fell about 5% in early trading, suggesting a sell-the-news reaction.

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