New York, Feb 5, 2026, 07:16 ET — Premarket
- Snap jumped roughly 6% in pre-market trading following a Q4 revenue beat and announcement of a $500 million share buyback plan
- Snapchat’s parent company projected first-quarter revenue that missed analysts’ expectations
- Investors are balancing gains in smaller accounts with tightening budgets from major brands
Shares of Snap Inc climbed 6.3% in premarket trading Thursday following a holiday-quarter revenue beat and the announcement of a $500 million share buyback plan. The Snapchat parent, however, issued a lighter-than-expected revenue forecast for the first quarter.
This matters as Snap hunts for more consistent ad growth, having slipped behind larger competitors with wider reach. Buybacks are uncommon in this slice of social media, making this move stand out—especially with the stock hovering near multi-month lows.
Traders will watch to see if the early jump holds through the open or if the guidance gap drags it back into the broader tech selloff.
Snap reported a 10% increase in fourth-quarter revenue from last year, reaching $1.72 billion, driven by holiday demand and a rise in active advertisers. CEO Evan Spiegel noted, “Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth.” Reuters
Snap projected first-quarter revenue between $1.50 billion and $1.53 billion, just under analysts’ consensus of $1.55 billion, highlighting continued pressure on ad spending.
The company projected adjusted EBITDA of $170 million to $190 million, beating expectations. This metric, which excludes interest, taxes, and non-cash items, reflects Snap’s effort to control costs while pushing growth in higher-margin ad formats.
CFO Derek Andersen told analysts the company experienced robust growth in its medium-customer segment, though the North America large-customer business continued to struggle with headwinds.
Snapchat+ subscribers jumped 71% to 24 million this quarter, boosting revenue with new paid features beyond traditional ads. Daily active users climbed 5% year-over-year to 474 million but dipped by 3 million from the previous quarter.
The board approved repurchases of up to $500 million in Snap’s Class A common stock over the next 12 months, with purchases possible through open market or private transactions. Snap reported it closed 2025 with $2.9 billion in cash, cash equivalents, and marketable securities.
Snap’s holiday boost hasn’t erased the pressure it faces from Meta Platforms and TikTok in the battle for ad spending. “The ads platform (of Snap) still has a long way to go in attracting big budgets from enterprise advertisers,” Emarketer analyst Max Willens noted. Reuters
Snap noted its first-quarter revenue forecast doesn’t include any earnings from its Perplexity integration, despite the $400 million deal struck last year. The companies “have yet to mutually agree on a path to a broader roll out,” Snap said. Reuters
Snap shares fell 3.1% to $5.91 on Wednesday ahead of the earnings announcement.
Still, risks linger. A weaker revenue forecast might overshadow the buyback news, while the drop in daily active users from one period to the next fuels doubts about engagement’s stability. Should major advertisers remain hesitant, the rally could quickly lose steam.
The cash market opens at 9:30 a.m. ET, putting Snap’s premarket gains to the test. Investors will be watching closely to see if the momentum sticks, especially as ad signals from competitors start to ripple through in the coming weeks.
