Schwab Network on $APP (Nov 5, 2026)
APP beat on both revenue and earnings and its Q4 guidance exceeded expectations handily, helped by an 84% adjusted EBITDA margin, the metric investors care about most. After being so oversold, APP now looks closer to a proper fundamental valuation, and it is also getting a tailwind from rotation out of AI names into overlooked beaten-up stocks.
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Yeah, we are seeing a nice move to the upside up over 23% in pre-market trading here. Company was actually able to beat both on the top and bottom line. We had revenue coming in at $2.19 billion.
Street was looking for 2.08 08 billion as you kind of talked about in the opening, up over 55% on a year-over-year basis. The adjusted earnings per share also came in at $4.31.
Street was looking for $44. We saw the adjusted EBA coming in at 1.84 billion. Street was looking for 1.73 billion. Now, the margin is really also the story that's being told here why you are seeing a lot of enthusiasm. 66% when it comes to their net income margin.
We can put that aside. The adjusted EVA margin came in at 84%. That's really the metric that a lot of investors and traders really care about for this name and their guidance obviously did exceed the streets expectations handedly once again that's on the back of the adjusted IBA margins uh that they provide as far as their guidance for Q4 here.
So beat both top bottom line. Seems like their guidance is actually uh really really good. And then the stock has been so oversold to the downside that you are now seeing probably closer to a proper valuation from a fundamental standpoint that investors can stomach.
So you are seeing a nice little rip to the upside here. And I think this is also seeing some of the tailwind from that rotation trade out of the AI focus to some of the other beaten up names that have been overlooked over the last year.
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