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Digital Turbine to Report Q2 Earnings: What's in Store for the Stock?

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Key Takeaways

  • Digital Turbine expects Q2 revenues of $167.05 million, up 19% year over year.
  • APPS is poised to benefit from strong ODS and AGP growth and rising ad demand.
  • AI-powered advertising and global expansion may aid APPS, but higher chip costs pose risks.

Digital Turbine (APPS - Free Report) is slated to release second-quarter fiscal 2027 results on Nov. 9, 2026.

The Zacks Consensus Estimate for APPS’ fiscal second-quarter revenues is pegged at $166.62 million, suggesting year-over-year growth of 18.69%. The consensus mark for earnings is pegged at 16 cents per share. Digital Turbine reported earnings of 15 cents per share in the year-ago quarter.

Digital Turbine’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 69%. 

Let’s see how things have shaped up prior to the announcement.

Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote

Factors Likely to Have Influenced Q2 Performance

Digital Turbine is expected to have benefited from strong momentum across its On-Device Solutions (ODS) and Application Growth Platform (AGP) businesses in the second quarter of fiscal 2027. Growing advertiser demand, improving monetization rates and expanding international device partnerships are likely to have supported top-line growth. In the fiscal first quarter, ODS revenues increased 15% year over year to $110 million, driven by higher device volumes and revenue per device. International ODS revenues surged nearly 80%, supported by strength in Latin America and Europe. Continued expansion of partnerships with original equipment manufacturers, including Samsung and Motorola, along with telecom operators, is likely to strengthen device distribution and monetization opportunities in the to-be-reported quarter.

The AGP business is expected to have benefited from robust advertising demand, improving pricing and expanding publisher relationships. In the fiscal first quarter, AGP revenues surged 56% year over year to $56.6 million, marking the second consecutive quarter of more than 50% growth. The company’s direct brand advertising business grew more than 70%, while DTX revenues increased 54%. Growing advertising investments from large brands, expanding non-gaming advertiser participation and improving fill rates are likely to have sustained momentum. The continued onboarding of publishers and demand partners, particularly in the Asia-Pacific region, alongside expanding software development kit distribution, is expected to have strengthened advertising inventory and monetization.

Digital Turbine’s growing investments in AI-powered advertising optimization are likely to have contributed positively to performance. Its DTIQ and IgniteGraph capabilities leverage first-party data and machine learning to improve audience targeting, advertising effectiveness and return on advertising spending. These improvements are expected to have supported higher advertising rates and stronger demand across its platform.

APPS is also likely to have benefited from expanding publisher supply and increasing software development kit adoption across Asia-Pacific markets. Growing participation from non-gaming publishers, including news, sports, e-commerce and AI applications, is expected to strengthen its advertising marketplace. The company’s extensive distribution network, comprising nearly 3 billion devices and more than 80,000 applications, should support user acquisition, advertising demand and monetization opportunities. Increasing adoption of alternative application distribution channels, including SingleTap, is also expected to have created incremental growth opportunities.

However, Digital Turbine expects the second quarter of fiscal 2027 to suffer from potential global device-volume pressure from higher DRAM/chipset prices and supply-chain constraints.

What Our Model Says

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 0.00% 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 a few companies to consider in the broader Zacks Computer and Technology sector, as our model indicates they have the right combination of factors to beat earnings expectations in their upcoming releases.
 
Hewlett Packard Enterprise (HPE - Free Report) is slated to report fourth-quarter fiscal 2026 results on Nov. 23. Hewlett Packard Enterprise has an Earnings ESP of +2.64% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
The Zacks Consensus Estimate for Hewlett Packard Enterprise’s fourth-quarter earnings is pegged at $1.28 per share, revised upward by a penny over the past 30 days. The consensus mark for earnings suggests a year-over-year surge of 106.5.% from the year-ago quarter’s reported figure.
 
NVIDIA Corporation (NVDA - Free Report) has an Earnings ESP of +3.46% and a Zacks Rank #2 at present. NVIDIA is slated to report third-quarter fiscal 2027 results on Nov. 17.
 
The Zacks Consensus Estimate for NVIDIA’s third-quarter earnings is pegged at $2.49 per share, up by a penny over the past 30 days. The consensus mark for earnings calls for a year-over-year jump of 91.5%.
 
Intuit, Inc. (INTU - Free Report) has an Earnings ESP of +0.20% and currently carries a Zacks Rank #3. Intuit is set to report first-quarter fiscal 2027 results on Nov. 19.
 
The Zacks Consensus Estimate for Intuit’s first-quarter earnings is pegged at $2.47 per share, up by a penny over the past 30 days. The consensus mark for earnings indicates a year-over-year decline of 26.1%.

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