Zacks Research Comments on Snap’s Q3 Earnings (NYSE:SNAP)

Snap Inc. (NYSE:SNAP) – Analysts at Zacks Research lifted their Q3 2026 earnings estimates for shares of Snap in a note issued to investors on Monday, August 24th. Zacks Research analyst Team now anticipates that the company will post earnings per share of ($0.03) for the quarter, up from their previous forecast of ($0.06). Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Snap’s current full-year earnings is ($0.05) per share. Zacks Research also issued estimates for Snap’s Q1 2027 earnings at ($0.02) EPS, Q2 2027 earnings at ($0.04) EPS, Q3 2027 earnings at $0.01 EPS, Q4 2027 earnings at $0.07 EPS, FY2027 earnings at $0.02 EPS, Q1 2028 earnings at $0.01 EPS, Q2 2028 earnings at ($0.01) EPS and FY2028 earnings at $0.11 EPS.

Snap (NYSE:SNAP) last posted its quarterly earnings data on Monday, August 3rd. 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 4.90% and a negative return on equity of 14.61%. The company had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same period last year, the company earned ($0.16) earnings per share. The firm’s revenue was up 18.9% compared to the same quarter last year.

Other analysts also recently issued research reports about the company. Truist Financial lowered their target price on Snap from $8.00 to $7.00 and set a “hold” rating on the stock in a research report on Tuesday, August 4th. Citigroup raised their price target on Snap from $6.50 to $6.75 and gave the company a “neutral” rating in a research note on Tuesday, August 4th. Barclays upped their price objective on Snap from $15.00 to $16.00 and gave the stock an “overweight” rating in a research note on Tuesday, August 4th. Wells Fargo & Company boosted their target price on shares of Snap from $5.00 to $6.00 and gave the stock an “equal weight” rating in a report on Tuesday, August 4th. Finally, Rosenblatt Securities dropped their price target on shares of Snap from $6.40 to $6.00 and set a “neutral” rating on the stock in a research report on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-three have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $7.65.

Snap Stock Down 8.6%

Shares of SNAP stock opened at $5.41 on Thursday. The firm’s fifty day moving average price is $4.88 and its two-hundred day moving average price is $5.13. The company has a current ratio of 2.94, a quick ratio of 2.94 and a debt-to-equity ratio of 1.75. Snap has a 1 year low of $3.81 and a 1 year high of $9.28. The firm has a market capitalization of $9.15 billion, a P/E ratio of -30.05 and a beta of 1.03.

Hedge Funds Weigh In On Snap

A number of large investors have recently made changes to their positions in the company. Saba Capital Management L.P. grew its position in Snap by 232.5% in the first quarter. Saba Capital Management L.P. now owns 4,727,808 shares of the company’s stock valued at $21,748,000 after acquiring an additional 3,306,024 shares during the last quarter. Empyrean Capital Partners LP bought a new position in shares of Snap in the first quarter worth about $25,300,000. Assenagon Asset Management S.A. boosted its stake in shares of Snap by 1,191.8% in the 2nd quarter. Assenagon Asset Management S.A. now owns 3,903,141 shares of the company’s stock valued at $17,330,000 after purchasing an additional 3,601,002 shares in the last quarter. Leonteq Securities AG acquired a new stake in shares of Snap in the 4th quarter valued at approximately $1,620,000. Finally, Eurizon Capital SGR S.p.A. bought a new stake in shares of Snap during the 4th quarter valued at approximately $1,629,000. Institutional investors own 47.52% of the company’s stock.

Insider Activity at Snap

In related news, insider Ajit Mohan sold 54,608 shares of Snap stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $5.20, for a total transaction of $283,961.60. Following the completion of the sale, the insider owned 4,972,097 shares of the company’s stock, valued at approximately $25,854,904.40. The trade was a 1.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Rebecca Morrow sold 17,336 shares of the company’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $5.20, for a total transaction of $90,147.20. Following the completion of the transaction, the chief accounting officer owned 598,105 shares in the company, valued at approximately $3,110,146. This trade represents a 2.82% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 2,770,698 shares of company stock worth $15,345,605 in the last quarter. 22.68% of the stock is owned by corporate insiders.

Key Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Zacks Research raised multiple earnings forecasts. Estimates were increased for Snap’s third-quarter 2026 EPS to $(0.03) from $(0.06), fiscal 2027 EPS to $0.02 from $(0.16), and fiscal 2028 EPS to $0.11 from $(0.07). The revisions suggest analysts see a potentially faster path toward profitability, although the firm still maintains a “Strong Sell” rating.
• Neutral Sentiment: Snap expanded its Saudi Arabia communications team. The appointment of Rowan Saghayroun as Head of Communications for Saudi Arabia underscores the company’s focus on regional engagement, regulatory outreach and international growth, but the move is unlikely to have an immediate financial impact. Does Snap Need a Saudi Communications Chief to Grow Its Middle East Story?
• Neutral Sentiment: Options activity showed increased bullish speculation. Traders purchased 155,956 call options Tuesday, about 83% above typical call volume. This may indicate speculative interest but does not establish a fundamental change in Snap’s outlook.
• Negative Sentiment: Pennsylvania sued Snap over alleged youth-safety and design practices. The attorney general alleges Snapchat misleads parents about mature content and uses features such as Snapstreaks and infinite scroll to encourage compulsive use among minors. Potential civil penalties, mandated product changes and restrictions on marketing or access could increase costs and threaten user engagement and advertising monetization. Youth Engagement Lawsuit Could Be a Game Changer for Snap’s Core Monetization Model

Snap Company Profile

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.