Digital Turbine APPS is slated to release fourth-quarter fiscal 2026 results on May 26.
The Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at 9 cents per share, down 3 cents over the past 30 days. This indicates a decline of 10% from the year-ago quarter’s reported figure.
APPS’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average surprise being 87.5%.
Let’s see how things might have shaped up prior to the announcement.
Digital Turbine, Inc. Price and EPS Surprise
Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote
Factors Likely to Have Influenced APPS’ Q4 Performance
APPS’ fiscal fourth-quarter performance is expected to have benefited from continued international expansion within its On-Device Solutions (“ODS”) business. Management stated that international revenues on the Ignite platform grew more than 60% year over year in the third fiscal quarter, driven by over 20% increases in device volumes and revenues per device. The company also noted that, for the first time, more than 30% of Ignite revenues were generated outside the United States, suggesting that international carrier and OEM partnerships likely remained major contributors entering the fourth fiscal quarter.
The Application Growth Platform (“AGP”) business likely remained another key driver in the fourth fiscal quarter. Management highlighted 19% year-over-year growth in AGP revenues to $53 million in the third fiscal quarter, supported by stronger advertiser demand, improving pricing and higher fill rates for premium placements. The company also pointed to more than 30% growth in its DTX/SSP business and increasing non-gaming inventory volumes. In addition, retail media demand accelerated sharply, with the retail vertical growing 5x compared with the prior holiday season. This indicates that advertising momentum and vertical-focused sales execution likely supported fourth-quarter performance.
AI and platform integration efforts likely remained positive contributors. Management emphasized that integrated tech stacks and AI-driven optimization improved monetization, targeting, coding efficiency, quality assurance and operational discipline. Gross profit increased more than 25% while operating expenses declined year over year, highlighting operating leverage that may have continued into the fourth fiscal quarter. The company cited the growing “flywheel” effect between app monetization and user acquisition across more than 80,000 integrated applications.
However, risks remained. Management acknowledged ongoing softness in U.S. device volumes, which could have pressured ODS growth. The company remains exposed to broader mobile advertising demand trends and competitive dynamics in app distribution. Dependence on international growth, execution risks tied to alternative app ecosystems and uncertainty surrounding platform changes from large industry players such as Google and Meta could have created volatility in fourth-quarter performance.
What Our Model Says About APPS
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the exact case here.
Digital Turbine has an Earnings ESP of -41.18% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Dell Technologies DELL has an Earnings ESP of +3.51% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies shares have gained 100.8% in the year-to-date period. The company is set to report its first-quarter 2027 results on May 28, 2026.
Salesforce CRM has an Earnings ESP of +1.40% and a Zacks Rank #2.
Salesforce shares have lost 32.1% in the year-to-date period. CRM is set to report its first-quarter fiscal 2027 results on May 27, 2026.
TD SYNNEX CORP SNX has an Earnings ESP of +0.79% and a Zacks Rank #2 at present.
TD SYNNEX CORP shares have gained 53.6% in the year-to-date period. SNX is likely to report second-quarter 2026 results on June 23.
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Digital Turbine, Inc. (APPS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).