Companies /Communication Services

Snap Inc - Class A

NYSE: SNAP Internet Content & Information
$5.36
▼ $0.20 (−3.51%) today
Markets closed · 6:09pm ET

Q1 2026 Earnings

Reported May 6, 2026, 4:11pm ET · SEC source
$-0.05
Beat +29.38%
EPS · est. $-0.07
$1.5B
Beat +0.08%
Revenue · est. $1.5B
−7.3%
Trailing market
SNAP vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−5%0+5%May 6May 7report 4:11pm ETearnings−0.4%+0.7%
−5%0+5%May 6May 7earnings−0.4%+0.7%
SNAP +0.7%S&P 500 −0.4%
−5%0+5%May 6May 7report 4:11pm ETearnings−0.4%+0.7%
−5%0+5%May 6May 7earnings−0.4%+0.7%
SNAP +0.7%NASDAQ −0.4%
−6%0+6%May 5May 14report 4:11pm ETearnings+1.9%−7.8%
−6%0+6%May 5May 14earnings+1.9%−7.8%
SNAP −7.8%S&P 500 +1.9%
−6%0+6%May 5May 14report 4:11pm ETearnings+3.5%−7.8%
−6%0+6%May 5May 14earnings+3.5%−7.8%
SNAP −7.8%NASDAQ +3.5%
−2.13%
Day of report
+1.67%
Next session
−10.37%
One week
−6.52%
30 days

S&P 500 over the same 30 days: +0.75%.

Did SNAP Beat Earnings? Q1 2026 Results

Snap delivered a cleaner-than-expected first quarter for fiscal 2026, posting a loss of $0.05 per share against a consensus estimate of $0.07, a 29.38% beat, while revenue of $1.53 billion grew 12.2% year-over-year and edged just ahead of Wall Street's forecast. The most material driver behind the upside was a sharp acceleration in Snapchat+ subscriptions and adjacent offerings, which pushed the Other Revenue segment up 87% to $285 million and more than offset continued softness in advertising, where large North America brands and an estimated $20 to $25 million in geopolitical headwinds from the Middle East weighed on ad revenue growth. Adjusted EBITDA more than doubled to $233.33 million as free cash flow surged 150% to $286.01 million, signaling improving operating leverage. Still, North America daily active users fell 7% year-over-year to 92 million, a persistent concern that contributed to a notable after-hours stock decline. Looking ahead, Snap guided Q2 revenue of $1.52 billion to $1.55 billion and Adjusted EBITDA of $175 million to $200 million, with a restructuring expected to reduce annualized costs by more than $500 million in the second half of 2026.

Key Takeaways
  • Other Revenue surged 87% YoY to $285 million driven by Snapchat+ subscriptions, Memories Storage, and Lens+
  • Dynamic Product Ads revenue grew more than 30% year-over-year
  • SMBs grew spend by more than 30% YoY in North America and accounted for over 30% of global ad revenue
  • Adjusted EBITDA flow through of 75% on year-over-year revenue growth
  • Adjusted Gross Margin improved 3 percentage points YoY to 57%
  • App Purchases revenue grew 87% year-over-year
  • Goal-based bidding revenue grew 27% year-over-year
  • Nearly 70% of advertising spend uses at least one AI-powered automation solution

“In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow.”

Snap CEO, on the earnings call

Forward Guidance & Outlook

For Q2 2026, Snap guided revenue of $1.52 billion to $1.55 billion and Adjusted EBITDA of $175 million to $200 million. The guidance assumes no contribution from Perplexity after amicably ending the relationship in Q1, and that the operating environment in the Middle East remains consistent with March/April headwinds. Infrastructure costs are expected to grow modestly year-over-year in Q2. The recently announced restructuring will have a partial period benefit in Q2, with full Adjusted Operating Expenses and SBC reductions more fully reflected in Q3 and beyond. Pre-tax restructuring charges of $95 million to $130 million are expected, primarily in Q2. The restructuring is expected to reduce annualized cost structure by more than $500 million in the second half of 2026. The company aims for Adjusted Gross Margin of 60% or better for fiscal 2026. The commercial launch of Specs is expected later in 2026.

SNAP YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$500.0M$1.0B$1.5B$1.4B$1.5BRevenue$723.7M$863.6MGross Profit$-46,072,777$-74,449,000Operating Income$-65,270,766$-88,951,000Net Income
$0$500.0M$1.0B$1.5BRevenueGross ProfitOperating IncomeNet Income

SNAP Revenue by Segment

Advertising Revenue$1.2B+3.0%
Other Revenue$285.0M+87.0%

SNAP Revenue by Geography

North America$851.3M+2.0%
Europe$323.9M+45.0%
Rest of World$353.7M+15.0%

Figures from SEC filings and company reports. Not investment advice.