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Snap expects second-quarter 2026 revenues to be in the range of $1.52-$1.55 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.53 billion, indicating a 13.97% increase from the year-ago quarter’s reported figure.
The consensus mark for the bottom line has remained steady at 7 cents per share in the past 30 days.
Snap’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, while matching once and missing once, with an average negative surprise of 42.22%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
The company expects adjusted EBITDA of $175 million to $200 million, an acceleration management attributed largely to North American advertising strength and a roughly 10% year-over-year rise in upfront ad commitments. Yet that same guidance embedded a full quarter of geopolitical disruption in the Middle East, a region that already dented March revenues by $20 million to $25 million, with no expectation of easing during the quarter.
Compounding the top-line pressure, the company confirmed the amicable end of its Perplexity partnership, meaning the second quarter carried zero contribution from that revenue source for the first time.
Management also flagged that total eCPMs remained under strain as ad inventory continued shifting toward newer, still-maturing surfaces like Spotlight and Sponsored Snaps, a mix shift that management itself acknowledged was margin-dilutive during its demand-building phase.
On profitability, the quarter absorbed the bulk of restructuring charges tied to April's workforce actions, guided at $95 million to $130 million, positioned by management as a direct headwind to net income even as the company pursued more than $500 million in annualized cost reduction for the back half of the year. Meanwhile, the commercial unveiling of Specs in June, priced at $2,195, thrust a capital-intensive hardware bet into the spotlight just as investor patience over the unit's cumulative spend appeared to be thinning, raising questions about near-term monetization versus long-term AR ambitions. The launch drew visible investor unease, with shares retreating in the sessions that followed.
Evolving regulatory scrutiny around age assurance, data privacy and advertising practices added another layer of uncertainty, with management cautioning that compliance costs could rise and engagement could be affected, though the timing and magnitude remained unclear heading into the print.
Despite the headwinds, direct-response advertising and Snapchat+ subscription growth remained ongoing contributors to revenue diversification, an area management has repeatedly flagged as a structural offset to platform-specific volatility. Newer ad surfaces such as Sponsored Snaps and Spotlight, while still margin-dilutive, were also expected to add incremental inventory and impressions as they scaled further into demand-building. Additionally, the June rollout of a broader suite of AI-powered capabilities across the ads stack was positioned by the company as a lever to improve ad relevance and advertiser return, a factor management suggested could support monetization even as macro and geopolitical crosscurrents persisted.
Between lingering geopolitical drag, restructuring-related net income pressure, a costly and unproven hardware push, and regulatory overhang, the balance of company-disclosed factors tilted toward caution. Until execution translates guidance into consistent, sustainable earnings, investors may find it prudent to stay on the sidelines ahead of the print.
What Our Model Indicates
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. That's not the case here.
Snap has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re 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:
Arista Networks shares have gained 28.8% in the year-to-date period.
AMETEK (AME - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #2. AMETEK shares have lost 27% in the year-to-date period.
Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2 at present. AMD shares have lost 0.4% in the year-to-date period.
Arista Networks, AMETEK and AMD are each set to report their upcoming quarterly results on Aug. 4.
View the Zacks #1 Rank List
Image: Bigstock
Snap Gears Up to Report Q2 Earnings: What's in Store for the Stock?
Key Takeaways
Snap (SNAP - Free Report) is set to report second-quarter 2026 results on Aug. 3.
Snap expects second-quarter 2026 revenues to be in the range of $1.52-$1.55 billion. The Zacks Consensus Estimate for revenues is currently pegged at $1.53 billion, indicating a 13.97% increase from the year-ago quarter’s reported figure.
The consensus mark for the bottom line has remained steady at 7 cents per share in the past 30 days.
Snap’s earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters, while matching once and missing once, with an average negative surprise of 42.22%.
Snap Inc. Price and EPS Surprise
Snap Inc. price-eps-surprise | Snap Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
The company expects adjusted EBITDA of $175 million to $200 million, an acceleration management attributed largely to North American advertising strength and a roughly 10% year-over-year rise in upfront ad commitments. Yet that same guidance embedded a full quarter of geopolitical disruption in the Middle East, a region that already dented March revenues by $20 million to $25 million, with no expectation of easing during the quarter.
Compounding the top-line pressure, the company confirmed the amicable end of its Perplexity partnership, meaning the second quarter carried zero contribution from that revenue source for the first time.
Management also flagged that total eCPMs remained under strain as ad inventory continued shifting toward newer, still-maturing surfaces like Spotlight and Sponsored Snaps, a mix shift that management itself acknowledged was margin-dilutive during its demand-building phase.
On profitability, the quarter absorbed the bulk of restructuring charges tied to April's workforce actions, guided at $95 million to $130 million, positioned by management as a direct headwind to net income even as the company pursued more than $500 million in annualized cost reduction for the back half of the year. Meanwhile, the commercial unveiling of Specs in June, priced at $2,195, thrust a capital-intensive hardware bet into the spotlight just as investor patience over the unit's cumulative spend appeared to be thinning, raising questions about near-term monetization versus long-term AR ambitions. The launch drew visible investor unease, with shares retreating in the sessions that followed.
Evolving regulatory scrutiny around age assurance, data privacy and advertising practices added another layer of uncertainty, with management cautioning that compliance costs could rise and engagement could be affected, though the timing and magnitude remained unclear heading into the print.
Despite the headwinds, direct-response advertising and Snapchat+ subscription growth remained ongoing contributors to revenue diversification, an area management has repeatedly flagged as a structural offset to platform-specific volatility. Newer ad surfaces such as Sponsored Snaps and Spotlight, while still margin-dilutive, were also expected to add incremental inventory and impressions as they scaled further into demand-building. Additionally, the June rollout of a broader suite of AI-powered capabilities across the ads stack was positioned by the company as a lever to improve ad relevance and advertiser return, a factor management suggested could support monetization even as macro and geopolitical crosscurrents persisted.
Between lingering geopolitical drag, restructuring-related net income pressure, a costly and unproven hardware push, and regulatory overhang, the balance of company-disclosed factors tilted toward caution. Until execution translates guidance into consistent, sustainable earnings, investors may find it prudent to stay on the sidelines ahead of the print.
What Our Model Indicates
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. That's not the case here.
Snap has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re 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:
Arista Networks (ANET - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 28.8% in the year-to-date period.
AMETEK (AME - Free Report) has an Earnings ESP of +0.39% and a Zacks Rank #2. AMETEK shares have lost 27% in the year-to-date period.
Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #2 at present. AMD shares have lost 0.4% in the year-to-date period.
Arista Networks, AMETEK and AMD are each set to report their upcoming quarterly results on Aug. 4.