Zacks Research Issues Positive Outlook for Snap Earnings

Key Points

• Zacks Research raised its Q1 2026 EPS estimate for Snap to ($0.09) from ($0.12) and issued upward revisions across 2026–2027 forecasts, projecting FY2028 EPS of $0.00, signaling an improving earnings outlook and narrower expected losses.
• Snap's last quarter missed on EPS ($0.03 reported vs. $0.15 expected) despite revenue of $1.72B beating estimates and rising 10.2% year‑over‑year, while profitability metrics remain negative (ROE ‑20.72%, net margin ‑7.76%).
• Insiders have sold substantial stock recently (including the General Counsel and CTO), the shares trade around $5.27 near the 52‑week low, and the analyst consensus is a Hold with an average price target of $8.17.

Snap Inc. (NYSE:SNAP - Free Report) - Research analysts at Zacks Research boosted their Q1 2026 earnings estimates for shares of Snap in a research report issued on Tuesday, February 24th. Zacks Research analyst Team now anticipates that the company will earn ($0.09) per share for the quarter, up from their previous forecast of ($0.12). The consensus estimate for Snap's current full-year earnings is ($0.30) per share. Zacks Research also issued estimates for Snap's Q3 2026 earnings at ($0.05) EPS, Q4 2026 earnings at $0.00 EPS, FY2026 earnings at ($0.25) EPS, Q1 2027 earnings at ($0.06) EPS, Q2 2027 earnings at ($0.04) EPS, Q3 2027 earnings at ($0.02) EPS, Q4 2027 earnings at $0.00 EPS and FY2027 earnings at ($0.12) EPS.

Snap (NYSE:SNAP - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.15 by ($0.12). Snap had a negative return on equity of 20.72% and a negative net margin of 7.76%.The firm had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.70 billion. During the same quarter in the prior year, the firm earned $0.01 EPS. The company's revenue was up 10.2% on a year-over-year basis.

SNAP has been the topic of several other research reports. TD Cowen lowered their price objective on Snap from $9.00 to $8.00 and set a "hold" rating on the stock in a research report on Thursday, February 5th. Stifel Nicolaus set a $5.50 price target on shares of Snap and gave the company a "hold" rating in a research note on Thursday, February 5th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Snap in a research report on Wednesday, January 21st. Evercore reissued a "mixed" rating on shares of Snap in a report on Thursday, February 5th. Finally, BMO Capital Markets raised their target price on shares of Snap from $12.00 to $13.00 and gave the stock an "outperform" rating in a report on Thursday, November 6th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $8.17.

Snap Stock Performance

NYSE:SNAP opened at $5.27 on Friday. The stock has a 50 day simple moving average of $6.84 and a 200 day simple moving average of $7.43. The stock has a market cap of $8.90 billion, a P/E ratio of -19.52 and a beta of 0.83. Snap has a 1-year low of $4.65 and a 1-year high of $10.41. The company has a current ratio of 3.56, a quick ratio of 3.56 and a debt-to-equity ratio of 1.53.

Insider Activity

In other news, General Counsel Zachary M. Briers sold 134,705 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total value of $633,113.50. Following the completion of the transaction, the general counsel directly owned 2,854,088 shares in the company, valued at approximately $13,414,213.60. The trade was a 4.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CTO Robert C. Murphy sold 1,000,000 shares of the company's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $5.36, for a total transaction of $5,360,000.00. Following the sale, the chief technology officer directly owned 49,313,775 shares of the company's stock, valued at approximately $264,321,834. This trade represents a 1.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 2,526,487 shares of company stock valued at $13,435,587 in the last 90 days. 22.68% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Snap

Large investors have recently modified their holdings of the business. Nikko Asset Management Americas Inc. raised its stake in shares of Snap by 94.1% during the second quarter. Nikko Asset Management Americas Inc. now owns 2,107,288 shares of the company's stock valued at $18,312,000 after acquiring an additional 1,021,677 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new position in Snap during the 2nd quarter worth $2,723,000. Arkadios Wealth Advisors acquired a new position in Snap during the 2nd quarter worth about $1,256,000. CWM LLC grew its position in shares of Snap by 50.5% in the 3rd quarter. CWM LLC now owns 387,935 shares of the company's stock valued at $2,991,000 after buying an additional 130,172 shares during the last quarter. Finally, Exchange Traded Concepts LLC increased its stake in shares of Snap by 29.6% in the third quarter. Exchange Traded Concepts LLC now owns 615,746 shares of the company's stock valued at $4,747,000 after buying an additional 140,457 shares during the period. Institutional investors and hedge funds own 47.52% of the company's stock.

Key Snap News

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Zacks lifted Q4 2027 EPS to $0.00 from ($0.05), signaling expectations for a turning quarter toward break‑even. MarketBeat: SNAP report
• Positive Sentiment: Zacks raised Q3 2027 EPS to ($0.02) from ($0.06), reflecting improved margin/profitability assumptions later in 2027. MarketBeat: SNAP report
• Positive Sentiment: Q2 2027 EPS was increased to ($0.04) from ($0.06), indicating steady upward revisions through 2027 quarters. MarketBeat: SNAP report
• Positive Sentiment: Q1 2027 EPS forecast rose to ($0.06) from ($0.09), showing earlier‑year improvement expectations. MarketBeat: SNAP report
• Positive Sentiment: Zacks now forecasts Q4 2026 EPS at $0.00 (previously ($0.04)), suggesting a quicker move to quarterly profitability than before. MarketBeat: SNAP report
• Positive Sentiment: Q3 2026 EPS was raised to ($0.05) from ($0.08), another near‑term improvement. MarketBeat: SNAP report
• Positive Sentiment: Zacks lifted Q1 2026 EPS to ($0.09) from ($0.12), trimming expected near‑term losses. MarketBeat: SNAP report
• Positive Sentiment: FY2027 EPS now forecast at ($0.12) versus ($0.26) previously — a meaningful improvement to the multi‑year outlook. MarketBeat: SNAP report
• Positive Sentiment: FY2026 EPS was raised to ($0.25) from ($0.35), narrowing the expected full‑year loss. MarketBeat: SNAP report
• Positive Sentiment: Zacks issued a FY2028 estimate of $0.00 EPS, implying analysts now see Snap reaching breakeven/low profit by 2028 under their model. MarketBeat: SNAP report

About Snap

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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