Digital Turbine, Inc. (NASDAQ:APPS) shares are trading higher Wednesday after the company reported better-than-expected fourth-quarter financial results and issued fiscal-year 2027 revenue guidance above estimates on Tuesday after the market closed.
- Digital Turbine shares are powering higher. Why is APPS stock surging?
Q4 Highlights
Digital reported adjusted earnings per share of 16 cents, beating the consensus estimate of 9 cents. In addition, it posted revenue of $142.54 million, beating the consensus estimate of $133.22. million.
Total On Device Solutions fourth-quarter net revenue before intercompany eliminations was $91 million, representing year-over-year growth of 5%. Total App Growth Platform fourth-quarter net revenue before intercompany eliminations was $52.1 million, representing year-over-year growth of 57%.
"Fiscal 2026 was a successful year for Digital Turbine. Emboldened by our upside financial performance and ongoing business momentum, we are pleased to provide guidance above current estimates for fiscal 2027," said CEO Bill Stone.
Stone said the company returned to double-digit revenue and adjusted EBITDA growth with notable gross margin expansion while strengthening its balance sheet and positioning the business for future growth.
"One of the key factors for our markedly improved performance has been our ability to more effectively utilize our unique first-party data in order to drive better results for our rapidly expanding global network of advertisers, publishers, carriers and OEMs," Stone said.
Stone also said the company's use of new AI tools and partnerships to maximize the value of its data assets "has been, and will continue to be, a meaningful contributor to growth."
Guidance
Digital sees fiscal-year 2027 revenue of between $630.00 million and $650.00 million, versus the consensus estimate of $618.94 million.
Digital Rally Tests Overbought Levels
Digital is trading well above its major moving averages, which is a classic "trend is in control" signal: it's 54.3% above the 20-day SMA ($4.04) and 33.2% above the 200-day SMA ($4.68). That kind of separation usually means the stock is extended, so the next question becomes whether buyers can hold gains on any pullback.
RSI is the cleanest momentum read right now, with the indicator at 72.41 (overbought) after first entering overbought territory in May. RSI measures how stretched the recent move is, and readings above 70 often imply upside momentum is strong but also more vulnerable to sharp, fast dips.
The longer-term backdrop is still mixed: the 20-day SMA is above the 50-day SMA (bullish near-term trend), but the stock is still living with the "death cross" that formed in January (50-day below the 200-day). In practice, that often means rallies can be powerful, but they may still face overhead supply as the market tests whether this is a durable trend change.
- Key Support: $6.00 — a nearby level where buyers previously stepped in, and a logical line-in-the-sand after the premarket gap higher
Digital Shares Advance
APPS Price Action: At the time of publication, Digital shares are trading 34.10% higher at $6.44, according to data from Benzinga Pro.
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