Revenue trends are diverging sharply between AppLovin and CoreWeave, with CoreWeave extending its lead into the most recent quarter. Company filings show AppLovin’s sales growth remains solid year over year, but CoreWeave’s quarterly run-rate accelerated more quickly, allowing it to overtake AppLovin in 2026.
The shift matters for investors because both businesses sit in different segments—AppLovin selling advertising software used by mobile app developers, while CoreWeave provides cloud infrastructure linked to intensive computing demand. The next quarterly updates will indicate whether the revenue gap continues to widen or whether AppLovin’s historically strong late-year advertising cycle helps narrow the difference.
Key takeaways
- Price move: AppLovin shares fell to a 52-week low of $303.17 on Aug. 12, according to the article.
- Catalyst: The report attributed the stock weakness to analyst downgrades and a potential slowdown in AppLovin’s growth rate, alongside the ongoing ramp in CoreWeave’s revenue.
- Revenue trend: CoreWeave’s quarterly revenue rose from $2.1 billion in Q1 2026 to $2.6 billion in Q2 2026, outpacing AppLovin’s rise from $1.8 billion to $1.9 billion over the same period.
- Key implication: Investors will be watching whether CoreWeave’s acceleration persists and whether AppLovin’s growth re-accelerates in coming quarters.
What drove the revenue divergence
AppLovin, which primarily provides software tools for mobile app developers to expand audiences and monetize digital applications, reported that the U.S. Securities and Exchange Commission concluded a voluntary, long-standing regulatory inquiry into its broader business operations with no recommended enforcement action. The company also reported a 66% net income margin for the quarter ended June 30, 2026.
CoreWeave operates a different model, offering specialized cloud computing infrastructure and high-capacity storage solutions for intensive enterprise computing. In its latest reported quarter ended June 30, 2026, the company executed a co-location agreement to expand physical data center capacity in Sweden and secured a multi-year foundational data storage agreement with Backblaze. CoreWeave also finalized a private offering of senior unsecured notes and reported a -24% net income margin.
Quarter-by-quarter revenue: CoreWeave closes the gap
Data from company filings, as presented in the article (data as of Aug. 17, 2026), shows that both companies generated higher revenue year over year across the observed timeline, but CoreWeave’s quarter-over-quarter gains were steeper as 2026 progressed.
- Q3 2024: AppLovin $835.2 million vs. CoreWeave $583.9 million
- Q4 2024: AppLovin $1.4 billion vs. CoreWeave $747.4 million
- Q1 2025: AppLovin $1.2 billion vs. CoreWeave $981.6 million
- Q2 2025: AppLovin $1.3 billion vs. CoreWeave $1.2 billion
- Q3 2025: AppLovin $1.4 billion vs. CoreWeave $1.4 billion
- Q4 2025: AppLovin $1.7 billion vs. CoreWeave $1.6 billion
- Q1 2026: AppLovin $1.8 billion vs. CoreWeave $2.1 billion
- Q2 2026: AppLovin $1.9 billion vs. CoreWeave $2.6 billion
While AppLovin’s revenue stayed on an upward path, the latest progression shows a comparatively modest increase from Q1 to Q2 2026. CoreWeave’s growth, by contrast, accelerated meaningfully over the same span.
Market reaction and what investors will watch next
The article linked AppLovin’s Aug. 12 move to analyst downgrades and concerns that growth may be slowing. It also noted that AppLovin’s Q2 2026 revenue of $1.9 billion implied 53% growth over 2025, down from 59% in Q1 on a year-over-year basis. In addition, the report referenced AppLovin’s Q3 sales expectation of about $2.1 billion, suggesting further deceleration.
CoreWeave’s latest figures and infrastructure steps point to an investment cycle aimed at meeting demand. The article states that CoreWeave’s revenue has continued a “rocket ship” style trajectory, culminating in it overtaking AppLovin in 2026, and it cites CoreWeave’s estimate that revenue could rise to a range between $3.5 billion and $3.6 billion in Q3. The company’s negative net income margin in the most recent quarter underscores that revenue growth has not yet translated into profitability.
Bigger picture: growth quality vs. growth pace
For investors, the emerging question is whether AppLovin’s advertising software revenues can regain momentum and whether its seasonal patterns—particularly stronger fourth-quarter spending behavior tied to holiday demand, as described in the article—will reassert themselves in upcoming results.
At the same time, CoreWeave’s ability to sustain rapid top-line expansion will likely depend on the company’s capacity additions and continued demand for high-intensity computing infrastructure. With revenue outpacing AppLovin in 2026, the next earnings reports will be key to assessing whether the gap keeps widening or whether AppLovin’s growth re-accelerates as the calendar shifts.
Investors will also be watching for guidance updates around revenue trajectory and margin trends, alongside any regulatory developments following the SEC’s conclusion of AppLovin’s inquiry. The next major catalysts will be upcoming quarterly results for both companies and any refreshed forward-looking outlooks on revenue growth and capacity-driven scaling.
