Snap (NYSE:SNAP) Shares Up 14.3% After Better-Than-Expected Earnings

Posted by Geri Gentry on Aug 4th, 2026

Snap Inc. (NYSE:SNAP – Get Free Report) shares rose 14.3% during trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $5.70 and last traded at $5.7620. 21,343,709 shares were traded during trading, a decline of 56% from the average session volume of 48,347,301 shares. The stock had previously closed at $5.04.

The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.02. Snap had a negative net margin of 6.72% and a negative return on equity of 18.92%. The company had revenue of $1.60 billion during the quarter, compared to analysts’ expectations of $1.54 billion. During the same quarter in the prior year, the company earned ($0.16) EPS. The firm’s revenue was up 18.9% on a year-over-year basis.

Key Snap News

Here are the key news stories impacting Snap this week:

Positive Sentiment: Snap reported second-quarter revenue of $1.60 billion, up 18.9% year over year and above the $1.54 billion consensus estimate. The company’s $0.10-per-share loss also beat expectations for a $0.12 loss, while management highlighted margin expansion, positive free cash flow and improving advertising performance. Snap Second Quarter 2026 Financial Results
Positive Sentiment: Advertising spending tied to the FIFA World Cup, stronger demand from large North American advertisers and the adoption of Snap’s artificial-intelligence tools supported the quarterly beat. The company forecast third-quarter revenue of approximately $1.7 billion, broadly in line with consensus but viewed as a strong outlook. Snap Stock and World Cup Advertising
Positive Sentiment: The earnings report showed progress in Snap’s core advertising business and continued growth in direct revenue, reinforcing management’s message that the business is building a more durable financial foundation. Snap Earnings and Sales Forecast
Neutral Sentiment: Cantor Fitzgerald raised its price target from $5 to $6 but maintained a neutral rating. Rosenblatt Securities lowered its target from $6.40 to $6 and also kept a neutral rating, suggesting limited analyst conviction despite the earnings reaction. Benzinga Analyst Price Targets
Negative Sentiment: CEO Evan Spiegel avoided providing details on pre-order demand for Snap’s upcoming Specs smart glasses ahead of the September launch, leaving uncertainty around a potential future growth driver. Snap Specs Pre-Order Questions

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on SNAP. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $5.00 price objective on shares of Snap in a research note on Tuesday, July 21st. TD Cowen assumed coverage on Snap in a research note on Monday, April 27th. They issued a “buy” rating for the company. Rosenblatt Securities dropped their target price on Snap from $6.40 to $6.00 and set a “neutral” rating for the company in a report on Tuesday. Benchmark restated a “hold” rating on shares of Snap in a research report on Wednesday, June 17th. Finally, Citizens Jmp restated a “market perform” rating on shares of Snap in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, twenty-five have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $7.61.

Read Our Latest Report on Snap

Insider Buying and Selling

In related news, CAO Rebecca Morrow sold 16,729 shares of Snap stock in a transaction on Monday, May 18th. The shares were sold at an average price of $5.60, for a total value of $93,682.40. Following the sale, the chief accounting officer owned 512,811 shares in the company, valued at $2,871,741.60. The trade was a 3.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Robert C. Murphy sold 343,945 shares of the business’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $5.88, for a total transaction of $2,022,396.60. Following the transaction, the chief technology officer directly owned 4,963,581 shares in the company, valued at approximately $29,185,856.28. The trade was a 6.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,868,059 shares of company stock valued at $15,855,631 over the last three months.

Hedge Funds Weigh In On Snap

Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in Snap by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 101,251,557 shares of the company’s stock worth $817,100,000 after buying an additional 641,271 shares during the period. Capital World Investors grew its holdings in shares of Snap by 1.4% during the 4th quarter. Capital World Investors now owns 88,452,006 shares of the company’s stock worth $713,808,000 after acquiring an additional 1,179,543 shares during the period. Alyeska Investment Group L.P. purchased a new position in shares of Snap during the 3rd quarter worth approximately $176,697,000. Geode Capital Management LLC grew its holdings in shares of Snap by 3.6% during the 4th quarter. Geode Capital Management LLC now owns 13,525,119 shares of the company’s stock worth $108,711,000 after acquiring an additional 469,795 shares during the period. Finally, Voloridge Investment Management LLC raised its position in shares of Snap by 53.3% in the 3rd quarter. Voloridge Investment Management LLC now owns 10,300,911 shares of the company’s stock worth $79,420,000 after acquiring an additional 3,582,223 shares in the last quarter. 47.52% of the stock is owned by institutional investors.

Snap Price Performance

The stock has a market cap of $9.67 billion, a P/E ratio of -23.87 and a beta of 1.03. The company has a debt-to-equity ratio of 1.67, a quick ratio of 3.53 and a current ratio of 3.53. The firm has a 50-day moving average price of $4.96 and a 200-day moving average price of $5.34.

Snap Company Profile

(Get Free Report)

Snap Inc is a camera and social media company best known for developing and operating Snapchat, a multimedia messaging application that allows users to send photos, videos and messages that disappear after being viewed. In addition to its core messaging service, Snap offers a suite of augmented reality (AR) tools, including custom Lenses and Filters, that enable users and third-party developers to create interactive and immersive experiences. The company also provides advertising solutions that allow brands to engage audiences through Snap Ads, Sponsored Lenses and Discover content on the platform.

Founded in 2011 by Evan Spiegel and Bobby Murphy, Snap has continually focused on innovation in camera technology and AR.