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The Zacks Consensus Estimate for Snap’s fourth-quarter revenues is currently pegged at $1.7 billion, indicating a 9.12% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 15 cents per share, which has remained unchanged over the past 30 days, implying a 6.25% decline from the year-ago quarter’s earnings of 16 cents.
SNAP surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing it once, with an average negative surprise of 46.43%.
Let us see how things are shaping up for the upcoming announcement.
Snap is expected to have entered the fourth quarter of 2025 with improving advertising momentum following acceleration in direct response performance and continued strength in the Small and Medium-sized Business (SMB) segment. The SMB segment is expected to have demonstrated robust growth rates driven by strong adoption of automated advertising tools, while Europe and the Rest of World markets are expected to have shown significant acceleration, suggesting the international expansion strategy is gaining meaningful traction. The advertising platform's machine learning investments are expected to have driven improved attribution accuracy, particularly for purchase-related advertising, which is expected to have grown substantially faster than overall ad revenue. Snapchat+ subscriptions, approaching 17 million users, are expected to have demonstrated successful monetization diversification beyond advertising.
Content engagement trends are expected to have strengthened as the company's largest recommendation model improved freshness and relevance, with Spotlight views from recent content likely showing substantial year-over-year increases. The creator ecosystem is expected to have expanded rapidly, building on Snap Star activity that had been growing nearly 180% year-over-year in North America. During the quarter, the company launched Animate It, its first open-prompt video generation lens and Quick Cut for transforming memories into shareable content, while expanding to Amazon Fire Tablets to broaden accessibility.
However, fourth-quarter results are expected to reflect significant headwinds from regulatory pressures and strategic initiatives carrying engagement trade-offs. Australia's social media minimum age law took effect in December 2025, requiring account lockdowns for users under 16, which is expected to have created immediate user attrition. The rollout of platform-level age verification using signals from Apple and potentially Google to remove underage users globally is expected to have pressured daily active user metrics across multiple geographies. The introduction of Memory Storage Plans, ending unlimited free storage for users exceeding 5GB, likely generated resistance among engaged users. Infrastructure optimization in lower-monetization regions, while improving cost efficiency, is expected to have resulted in deliberate engagement trade-offs.
What Our Model Says for SNAP
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Snap currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Aercap shares have appreciated 50.1% in the trailing 12-month period. Aercap is set to report fourth-quarter 2025 results on Feb. 6, 2026.
ASGN (ASGN - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank #2 at present.
ASGN shares have plunged 45.7% in the trailing 12-month period. ASGN is set to report fourth-quarter 2025 results on Feb. 4, 2026.
Fluence Energy (FLNC - Free Report) has an Earnings ESP of +14.89% and a Zacks Rank #2 at present.
Fluence Energy shares have returned 114.6% in the trailing 12-month period. Fluence Energy is set to report first-quarter 2026 results on Feb. 4, 2026.
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SNAP Gears Up to Report Q4 Earnings: What's in Store for the Stock?
Key Takeaways
Snap (SNAP - Free Report) is scheduled to report its fourth-quarter 2025 results on Feb. 4.
The Zacks Consensus Estimate for Snap’s fourth-quarter revenues is currently pegged at $1.7 billion, indicating a 9.12% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 15 cents per share, which has remained unchanged over the past 30 days, implying a 6.25% decline from the year-ago quarter’s earnings of 16 cents.
SNAP surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing it once, with an average negative surprise of 46.43%.
Let us see how things are shaping up for the upcoming announcement.
Snap Inc. Price, Consensus and EPS Surprise
Snap Inc. price-consensus-eps-surprise-chart | Snap Inc. Quote
Factors to Consider
Snap is expected to have entered the fourth quarter of 2025 with improving advertising momentum following acceleration in direct response performance and continued strength in the Small and Medium-sized Business (SMB) segment. The SMB segment is expected to have demonstrated robust growth rates driven by strong adoption of automated advertising tools, while Europe and the Rest of World markets are expected to have shown significant acceleration, suggesting the international expansion strategy is gaining meaningful traction. The advertising platform's machine learning investments are expected to have driven improved attribution accuracy, particularly for purchase-related advertising, which is expected to have grown substantially faster than overall ad revenue. Snapchat+ subscriptions, approaching 17 million users, are expected to have demonstrated successful monetization diversification beyond advertising.
Content engagement trends are expected to have strengthened as the company's largest recommendation model improved freshness and relevance, with Spotlight views from recent content likely showing substantial year-over-year increases. The creator ecosystem is expected to have expanded rapidly, building on Snap Star activity that had been growing nearly 180% year-over-year in North America. During the quarter, the company launched Animate It, its first open-prompt video generation lens and Quick Cut for transforming memories into shareable content, while expanding to Amazon Fire Tablets to broaden accessibility.
However, fourth-quarter results are expected to reflect significant headwinds from regulatory pressures and strategic initiatives carrying engagement trade-offs. Australia's social media minimum age law took effect in December 2025, requiring account lockdowns for users under 16, which is expected to have created immediate user attrition. The rollout of platform-level age verification using signals from Apple and potentially Google to remove underage users globally is expected to have pressured daily active user metrics across multiple geographies. The introduction of Memory Storage Plans, ending unlimited free storage for users exceeding 5GB, likely generated resistance among engaged users. Infrastructure optimization in lower-monetization regions, while improving cost efficiency, is expected to have resulted in deliberate engagement trade-offs.
What Our Model Says for SNAP
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Snap currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:
Aercap (AER - Free Report) has an Earnings ESP of +8.70% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aercap shares have appreciated 50.1% in the trailing 12-month period. Aercap is set to report fourth-quarter 2025 results on Feb. 6, 2026.
ASGN (ASGN - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank #2 at present.
ASGN shares have plunged 45.7% in the trailing 12-month period. ASGN is set to report fourth-quarter 2025 results on Feb. 4, 2026.
Fluence Energy (FLNC - Free Report) has an Earnings ESP of +14.89% and a Zacks Rank #2 at present.
Fluence Energy shares have returned 114.6% in the trailing 12-month period. Fluence Energy is set to report first-quarter 2026 results on Feb. 4, 2026.