Zacks Research Has Negative Outlook for Snap Q3 Earnings

Snap Inc. (NYSE:SNAP) – Analysts at Zacks Research decreased their Q3 2026 earnings estimates for shares of Snap in a research note issued on Monday, May 25th. Zacks Research analyst Team now forecasts that the company will post earnings per share of ($0.06) 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.

Snap (NYSE:SNAP) last announced 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 net margin of 6.72% and a negative return on equity of 18.92%. The business’s revenue for the quarter was up 12.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.08) EPS.

A number of other brokerages have also recently commented on SNAP. HSBC cut shares of Snap from a “hold” rating to a “hold” rating in a research note on Monday, April 27th. JPMorgan Chase & Co. lowered their price objective on shares of Snap from $7.00 to $6.00 and set an “underweight” rating on the stock in a research note on Thursday, May 7th. Cantor Fitzgerald lowered their price objective on shares of Snap from $9.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, February 5th. Barclays raised shares of Snap from an “overweight” rating to an “overweight” rating in a research note on Monday, April 27th. Finally, KeyCorp raised shares of Snap from a “sector weight” rating to an “overweight” rating in a research note on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twenty-two have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $7.91.

Snap Price Performance

Shares of NYSE SNAP opened at $5.89 on Tuesday. The stock has a market cap of $9.95 billion, a price-to-earnings ratio of -24.55 and a beta of 1.05. Snap has a 52 week low of $3.81 and a 52 week high of $10.41. The company’s 50-day moving average price is $5.39 and its 200 day moving average price is $6.32. The company has a current ratio of 3.53, a quick ratio of 3.53 and a debt-to-equity ratio of 1.67.

Insider Activity at Snap

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

Institutional Investors Weigh In On Snap

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in shares of Snap by 0.6% in the fourth quarter. Vanguard Group Inc. now owns 101,251,557 shares of the company’s stock worth $817,100,000 after acquiring an additional 641,271 shares during the last quarter. Capital World Investors boosted its position in shares of Snap by 1.4% in the fourth quarter. Capital World Investors now owns 88,452,006 shares of the company’s stock worth $713,808,000 after acquiring an additional 1,179,543 shares during the last quarter. Capital International Investors boosted its position in shares of Snap by 0.3% in the third quarter. Capital International Investors now owns 37,780,205 shares of the company’s stock worth $291,285,000 after acquiring an additional 95,989 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in shares of Snap in the third quarter worth approximately $176,697,000. Finally, Geode Capital Management LLC boosted its position in shares of Snap by 3.6% in the fourth quarter. Geode Capital Management LLC now owns 13,525,119 shares of the company’s stock worth $108,711,000 after acquiring an additional 469,795 shares during the last quarter. 47.52% of the stock is owned by institutional investors and hedge funds.

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.