Snap Inc. shares have fallen 7.6% since its second-quarter earnings report, underperforming the S&P 500, but the company reported strong revenue growth and raised guidance. In Q2 2026, Snap's revenues rose 19% year over year to $1.59 billion, beating the Zacks Consensus Estimate by 4.31% and exceeding its own guidance range of $1.52-$1.55 billion. Adjusted EBITDA surged 505% to $250 million, above the high end of its guided range of $175-$200 million, while adjusted earnings per share came in at 6 cents, missing the consensus estimate of 7 cents. Daily active users grew 5% to 493 million, and advertising revenues increased 9% to $1.28 billion, with other revenue jumping 85% to $316 million. For the third quarter, Snap expects revenues between $1.70 and $1.74 billion, implying about 19% growth, and adjusted EBITDA between $300 and $350 million. The company raised its full-year infrastructure cost guidance to $1.65-$1.7 billion, reflecting increased AI investment. Despite the positive results, the consensus estimate has shifted -125% over the past month, and Snap holds a Zacks Rank #3 (Hold).
Snap IncShares down 7.6% since Q2 earnings despite strong results, with EPS miss and negative estimate revisions.
Meta Platforms Inc.
