Brokers Set Expectations for Snap's Q3 Earnings (NYSE:SNAP)

Key Points

• Zacks Research lowered its Q3 2026 EPS estimate for Snap to a loss of $0.06 per share from $0.05, and the broader consensus still points to a full-year loss of $0.07 per share.
• Analyst sentiment remains cautious, with Snap carrying an average “Hold” rating and a $7.91 target price; recent ratings changes were mixed, including downgrades and reaffirmed neutral/hold views.
• Snap’s latest quarter missed profit expectations, reporting EPS of -$0.05 versus the expected $0.09, while revenue came in at $1.53 billion, matching estimates and rising 12.2% year over year.

Snap Inc. (NYSE:SNAP - Free Report) - Equities research analysts at Zacks Research dropped their Q3 2026 EPS estimates for Snap in a report issued on Monday, May 25th. Zacks Research analyst Team now expects that the company will earn ($0.06) per share for the quarter, down from their prior forecast of ($0.05). The consensus estimate for Snap's current full-year earnings is ($0.07) per share. Zacks Research also issued estimates for Snap's Q4 2026 earnings at $0.03 EPS, FY2026 earnings at ($0.19) EPS, Q1 2027 earnings at ($0.05) EPS, Q2 2027 earnings at ($0.07) EPS, Q3 2027 earnings at ($0.04) EPS, Q4 2027 earnings at $0.01 EPS, FY2027 earnings at ($0.16) EPS, Q1 2028 earnings at ($0.02) EPS and FY2028 earnings at ($0.07) EPS.

A number of other equities analysts also recently commented on SNAP. HSBC downgraded shares of Snap from a "hold" rating to a "hold" rating in a research note on Monday, April 27th. Barclays raised shares of Snap from an "overweight" rating to an "overweight" rating in a research note on Monday, April 27th. Freedom Capital downgraded shares of Snap from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. UBS Group set a $8.00 price objective on shares of Snap in a report on Thursday, May 7th. Finally, Rosenblatt Securities reaffirmed a "neutral" rating and set a $6.40 price objective on shares of Snap in a research report on Thursday, April 16th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-two have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Snap currently has an average rating of "Hold" and an average target price of $7.91.

Snap Stock Up 3.2%

SNAP stock opened at $5.89 on Tuesday. The firm's fifty day moving average is $5.39 and its 200 day moving average is $6.32. Snap has a one year low of $3.81 and a one year high of $10.41. The firm has a market cap of $9.95 billion, a PE ratio of -24.55 and a beta of 1.05. The company has a debt-to-equity ratio of 1.67, a quick ratio of 3.53 and a current ratio of 3.53.

Snap (NYSE:SNAP - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.09 by ($0.14). The company had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.53 billion. Snap had a negative return on equity of 18.92% and a negative net margin of 6.72%.The company's quarterly revenue was up 12.2% on a year-over-year basis. During the same period in the prior year, the business posted ($0.08) EPS.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in SNAP. Western Wealth Management LLC acquired a new position in shares of Snap in the 1st quarter valued at $48,000. Centaurus Financial Inc. raised its position in Snap by 9.0% during the 1st quarter. Centaurus Financial Inc. now owns 227,072 shares of the company's stock worth $1,045,000 after buying an additional 18,700 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Snap by 135.6% during the 1st quarter. EverSource Wealth Advisors LLC now owns 8,525 shares of the company's stock worth $39,000 after buying an additional 4,907 shares during the last quarter. Riposte Capital LLC purchased a new position in Snap during the 1st quarter worth $5,520,000. Finally, Empowered Funds LLC raised its position in Snap by 39.8% during the 1st quarter. Empowered Funds LLC now owns 338,774 shares of the company's stock worth $1,558,000 after buying an additional 96,495 shares during the last quarter. Institutional investors and hedge funds own 47.52% of the company's stock.

Insider Activity

In related news, General Counsel Zachary M. Briers sold 71,745 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $5.67, for a total transaction of $406,794.15. Following the sale, the general counsel directly owned 2,572,793 shares of the company's stock, valued at $14,587,736.31. This represents a 2.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Robert C. Murphy sold 2,000,000 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $5.44, for a total transaction of $10,880,000.00. Following the sale, the chief technology officer directly owned 47,012,324 shares in the company, valued at approximately $255,747,042.56. The trade was a 4.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 2,665,427 shares of company stock worth $14,514,853 over the last 90 days. Company insiders own 22.68% of the company's stock.

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.

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