AppLovinAPP -0.40%93 Net Margin % is 65.44% as of Mar. 2026, which is 447% above its 10-year median of 11.97. GuruFocus rates APP with a GF Score™ of 93/100 and a GF Value™ of $489.12 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,024 Media - Diversified companies, AppLovin ranks better than 98.34% on this metric.
Net margin is calculated as Net Income divided by its Revenue. AppLovin's Net Income for the
three
months ended in Mar. 2026 was $1,206 Mil. AppLovin's Revenue for the
three
months ended in Mar. 2026 was $1,842 Mil. Therefore, AppLovin's net margin for the quarter that ended in Mar. 2026 was 65.44%.
The historical rank and industry rank for AppLovin's Net Margin % or its related term are showing as below:
APP'
s Net Margin % Range Over the Past 10 Years
Min: -8.63 Med: 11.97 Max: 64.29
Current: 64.29
APP's Net Margin % is ranked better than 98.34% of 1024
companies
in the Media - Diversified industry
Industry Median: 1.225
vs APP: 64.29
AppLovin (NAS:APP) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
AppLovin Net Margin % Related Terms
AppLovin Net Margin % Historical Data
* Premium members only.
The historical data trend for AppLovin's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Advertising Agencies subindustry, AppLovin's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AppLovin Net Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, AppLovin's Net Margin % distribution charts can be found below:
* The bar in red indicates where AppLovin's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AppLovin (APP) has a Net Margin % of 65.44% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on AppLovin and its competitors. This is 447% above median its historical median of 11.97. According to the industry distribution chart, AppLovin ranks #17 out of 1024 companies in the Media - Diversified industry, placing it in the top 1.7%.
Is AppLovin's Net Margin % too high?
AppLovin's current Net Margin % of 65.44% is 447% above median its 10-year median of 11.97. The Media - Diversified industry median Net Margin % is 1.23. AppLovin's value of 65.44% is 5242% above this industry median. Based on the distribution chart, AppLovin ranks #17 out of 1024 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, AppLovin has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AppLovin's Net Margin % compare to OMC and TTD?
According to the Media - Diversified industry distribution chart, AppLovin ranks #17 out of 1024 companies for Net Margin %. This places AppLovin in the top 2% of its industry — outperforming the majority of peers. The industry median Net Margin % is 1.23. AppLovin's value of 65.44% is 5242% above this benchmark. While the company's 10-year median is 11.97 vs. the industry median of 1.23, AppLovin has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Media - Diversified company?
The median Net Margin % among Media - Diversified companies is 1.23, based on 1,024 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AppLovin's current Net Margin % of 65.44% is 5242% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on AppLovin and its competitors. For the Media - Diversified industry, the median Net Margin % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AppLovin's current Net Margin % is 65.44%, which is 447% above median its own 10-year median of 11.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AppLovin stock overvalued right now?
Based on GuruFocus' analysis, AppLovin (APP) is currently considered Fairly Valued. The stock's GF Value™ is $489.12, compared to a current price of $464.96 — trading 4.9% below its estimated fair value. The current Net Margin % is 65.44%, which is 447% above median its 10-year median of 11.97 and 5242% above the Media - Diversified industry median of 1.23. AppLovin's overall GF Score™ is 93/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For AppLovin (APP), the current Net Margin % is 65.44% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AppLovin (APP) Overvalued in 2026?
Based on GuruFocus' analysis, AppLovin stock appears to be undervalued.
The current stock price of $464.96 is trading 4.9% below its estimated GF Value™ of $489.12.
GuruFocus considers AppLovin to be Fairly Valued.
Key valuation signals for APP:
Net Margin %: 65.44% (447% above median its 10-year median of 11.97)
GF Value™: $489.12 vs. price of $464.96 (4.9% below fair value)
Industry Position: 5242% above the Media - Diversified median (#17 of 1024)
No single metric tells the full story. See the APP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AppLovin is a vertically integrated advertising technology company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange facilitating transactions between the two. About 80% of AppLovin's revenue comes from the DSP, AppDiscovery, while the remainder comes from the SSP, Max. AppLovin's primary tool for future growth is AXON 2, which is an ad optimizer operating within the DSP that allows advertisers to place ads according to specified return thresholds.
93GF Score
Get the complete analysis for APP
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