Digital analytics platform Amplitude (NASDAQ: AMPL) announced better-than-expected revenue in Q3 2026, with sales up 24.9% year on year to $110.6 million. Guidance for next quarter’s revenue was optimistic at $112 million at the midpoint, 3% above analysts’ estimates. Its non-GAAP profit of $0.04 per share was $0.01 above analysts’ consensus estimates.
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Amplitude (AMPL) Q3 2026 highlights:
- Revenue $110.6 million vs S&P analysts’ estimates of $107 million (24.9% year-on-year growth, 3.4% beat)
- Adjusted EPS $0.04 vs S&P analysts’ estimates of $0.03 ($0.01 beat)
- Adjusted operating income $5.65 million vs analyst estimates of $3.75 million (5.1% margin, 50.7% beat)
- Revenue guidance $112 million at the midpoint for Q4 2026, above analyst estimates of $108.8 million
- Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $0.08 at the midpoint, a 14.3% increase
- Operating margin -22.3%, up from -29% in the same quarter last year
- Customers 5,100, down from 5,200 in the previous quarter
- Net revenue retention rate 104%, down from 105% in the previous quarter
- Annual recurring revenue $431 million (24.2% year-on-year growth, beat)
- Billings $113.1 million at quarter end, up 35.6% year on year
- Market capitalization $2.15 billion
StockStory’s take
Amplitude’s third quarter results were positively received by the market, as the company delivered revenue growth above Wall Street expectations. Management attributed this outperformance to strong adoption of its AI-powered digital analytics and experimentation solutions, especially among enterprise clients. CEO Spenser Skates highlighted that demand was driven by organizations seeking to modernize their product development with AI, noting, “Enterprise customers are turning to us as a trusted partner in their AI transformation and are adopting a greater breadth of products from us.” Improvements in operational efficiency and increased customer utilization of the platform also contributed to higher profitability this quarter.
Looking ahead, Amplitude’s optimistic guidance reflects management’s belief that its expanding suite of AI-driven products—particularly Agent Analytics and Wave—will drive further growth. The company expects that deeper integration with large enterprises and continued cross-sell momentum will support both revenue and profitability. CFO Andrew Casey stated, “We see opportunities to serve our current and new customers across their life cycle during becoming AI native and how they serve their customers.” Management identified new product monetization and successful enterprise expansion as central to meeting its raised targets for the coming year.
Key insights from management’s remarks
Management emphasized that third quarter results were shaped by rapid enterprise adoption of new AI capabilities, increased multi-product usage, and improved operational execution.
- AI product adoption surge: Amplitude noted broad-based enterprise uptake of its AI-powered products, with customers increasingly seeking tools to understand and optimize user engagement as they modernize their tech stacks. The launch of Agent Analytics was highlighted, with over 125 customers using it within weeks of release.
- Statsig acquisition integration: The integration of Statsig has accelerated Amplitude’s experimentation and feature flagging capabilities. Management reported that the combination is already yielding new product innovations, and that Statsig contributed meaningfully to net new annual recurring revenue (ARR) this quarter.
- Operational efficiency gains: Sales and marketing expenses declined as a percentage of revenue, reflecting productivity improvements and a sharper focus on enterprise clients. Management credited changes in territory design, pricing, and packaging for these gains.
- Cross-sell and multi-product momentum: Half of Amplitude’s customers now use multiple products, and 81% of ARR comes from this cohort. The company is seeing increased interest in cross-sell opportunities, particularly as more clients migrate to the new pricing model that promotes adoption of AI features.
- Enterprise market focus: Amplitude’s pivot toward larger customers is yielding higher gross and net retention rates, with management citing strong expansion activity in verticals such as telecommunications, financial services, and retail. The company is de-emphasizing small and mid-market segments due to less favorable economics amid a challenging macro environment.
Drivers of future performance
Amplitude expects continued growth to be powered by broader enterprise adoption of its AI suite, new product launches, and improved customer monetization.
- Enterprise AI transformation: Management sees ongoing demand from enterprises looking to leverage AI for product development. The company believes its ability to guide customers through the AI adoption curve—offering hands-on support for both legacy migrations and advanced implementations—will be a key differentiator.
- Monetization of new products: The rollout of Agent Analytics and Wave is expected to drive both higher contract values and deeper engagement. Management intends to initially target large customers with Wave, focusing on hands-on deployments before scaling more broadly, with the potential for significant expansion of existing contracts.
- Operational leverage and pricing: Continued improvements in operational efficiency, along with migration to a simplified pricing model, are expected to support margin expansion. Management indicated that the new pricing structure enables greater average contract values, longer contract durations, and easier adoption of multiple platform products.
Catalysts in upcoming quarters
In coming quarters, the StockStory team will monitor (1) the pace of enterprise adoption for new products like Wave and Agent Analytics, (2) the ability to maintain operational efficiency while scaling innovation, and (3) progress in migrating customers to the new pricing model. Continued developments in AI product usage and the success of cross-sell initiatives will also be key factors shaping performance.
Amplitude currently trades at $17.60, up from $17.19 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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