NEW YORK, August 3, 2026, 13:08 EDT
- Snap stock gained 6.5% to roughly $5.00 during trading on Monday afternoon.
- The consensus forecast expects revenue of $1.54 billion and adjusted EBITDA close to $195 million.
- Snap expects annualized cost savings to surpass $500 million, representing nearly 6% of the company’s market capitalization.
Snap Inc. NYSE:SNAP rose 6.5% ahead of its upcoming second-quarter earnings announcement. The company’s results will be published following Monday’s market close, with the earnings call scheduled for 5 p.m. EDT.
The broader market provided support. Communications services outperformed on Wall Street, with investors moving back into growth stocks. Meta Platforms NASDAQ:META advanced 6.8%, and Alphabet NASDAQ:GOOGL increased by 5.4%. Pinterest NYSE:PINS was up roughly 0.6%.
Despite the gains, Snap shares reached a key resistance point. Bernstein’s Mark Shmulik and UBS’s Stephen Ju both set their price targets at $5. Mizuho analyst Lloyd Walmsley and Wells Fargo’s Alex Brondolo also maintain $5 price targets.
The revenue target appears achievable, while the margin goal presents more of a challenge. Snap forecast revenue between $1.52 billion and $1.55 billion and projected adjusted EBITDA in the range of $175 million to $200 million.
| Metric | Q2 2025 actual | Q1 2026 actual | Q2 2026 guidance / consensus estimate |
|---|---|---|---|
| Revenue | $1.345 billion | $1.529 billion | $1.52-$1.55 billion / $1.54 billion |
| Adjusted EBITDA | $41 million | $233 million | $175-$200 million / about $195 million |
| Adjusted EBITDA margin | 3.1% | 15.3% | 11.5%-12.9% / about 12.7% |
| Sequential change | — | — | Revenue up 0.7%; EBITDA down 16% |
| Year-on-year change | — | — | Revenue rises 14.5%; EBITDA jumps 372% |
Consensus figures show Snap’s EBITDA margin widens by around 960 basis points each year, but decreases by approximately 260 basis points quarter-on-quarter from the first quarter. This discrepancy brings cost management into sharp focus for Monday’s report. The figures are based on Snap’s released results and latest consensus estimates.
Options trading suggests an expected swing of around 14%. Snap has surpassed its options-predicted move in four out of its last eight earnings announcements. The rally on Monday has already accounted for close to half of the potential upside indicated at Friday’s market close.
| SNAP price benchmark | Price |
|---|---|
| Friday settlement | $4.69 |
| Projected 14% drop | $4.03 |
| Most recent price | about $5.00 |
| Projected 14% gain | $5.35 |
Snap projects annualized cost savings exceeding $500 million, representing roughly 5.9% of its present $8.44 billion market value. The restructuring is expected to incur pretax charges between $95 million and $130 million, primarily in the second quarter. As a result, GAAP results could appear less robust than adjusted numbers.
The composition of first-quarter revenue underscores the importance of diversification. Advertising increased by just 3%, but other revenue surged 87%. Analysis shows that subscriptions and other paid services accounted for about 80% of Snap’s additional revenue.
| Q1 revenue stream | Q1 2025 estimate | Q1 2026 | Year-on-year growth | Share of total growth |
|---|---|---|---|---|
| Advertising | around $1.211 billion | around $1.244 billion | 3% | approximately 20% |
| Other revenue | nearly $152 million | $285 million | 87% | close to 80% |
| Total revenue | $1.363 billion | $1.529 billion | 12% | 100% |
The numbers alter the investment outlook. Snap is not solely dependent on advertising for main growth anymore. Still, if paid services experience slower momentum, the advertising segment—lagging behind bigger rivals—would have to pick up the slack.
Meta and Alphabet have recorded a significantly quicker pace of advertising growth. Pinterest began the quarter experiencing improved momentum in total revenue. While the data is not exactly comparable, it illustrates where advertising budgets are being allocated.
| Company | Latest reported period | Revenue metric | Year-on-year growth |
|---|---|---|---|
| Meta Platforms | Q2 2026 | $59.36 billion in advertising revenue | 27.5% |
| Alphabet | Q2 2026 | $81.63 billion Google ad revenue | 14.4% |
| Q1 2026 | $1.01 billion in total revenue | 18% | |
| Snap | Q1 2026 | $1.24 billion in advertising revenue | 3% |
Chief Executive Evan Spiegel stated that in the first quarter, the company “returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow.” However, daily active users in North America dropped. Revenue in the region increased by 2%, while the global average revenue per user came in below expectations. Snap Investor Relations
Risks: Instability in the Middle East may once more dampen advertising demand. Monetization in North America continues to lag. Major cost-cutting measures might affect execution, and spending on Specs and regulatory requirements could offset certain savings.
A small revenue beat might be insufficient. Investors require sustained other-revenue increases and a strong margin forecast for the third quarter. With Snap priced at $5, shares are already aligned with conservative analyst targets. Monday’s results will have to warrant a move above these levels.
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