Evan Speigel, CEO of Snap, speaks with CNBC on June 16, 2026.
CNBC
Snap reported better-than-expected revenue and earnings for the second quarter and issued a forecast for the current period that topped analysts’ estimates. The stock jumped over 10% in extended trading.
Here’s how the company did compared with analysts’ expectations:
- Loss per share: Loss of 10 cents. That figure is not comparable to analysts’ estimates.
- Revenue: $1.6 billion vs. $1.54 billion expected, according to LSEG
- Global daily active users: 493 million vs. 487 million expected, according to StreetAccount
- Global average revenue per user (ARPU): $3.25 vs. $3.16 expected, according to StreetAccount
Revenue in the second quarter rose 19% from $1.34 billion a year earlier, Snap said in a statement. The company’s net loss narrowed to $164 million from $262.6 million, or 16 cents per share, a year ago.
Adjusted earnings came in at $250 million, ahead of the $192 million estimate, according to StreetAccount.
Snap said third-quarter sales should come in between $1.7 billion to $1.74 billion, topping analyst estimates of $1.7 billion. Adjusted earnings will be in the range between $300 million and $350 million. That figure’s midpoint of $325 million trails StreetAccount’s projections of $327 million.
Snap CEO Evan Spiegel said in an investor letter that the company “saw improving momentum in our advertising business.”
“After several quarters of improving our ad products and go-to-market approach, we saw better momentum with large advertisers in North America and stronger revenue growth internationally,” he said. Spiegel added the company got a boost from spending tied to the World Cup.
During its last earnings report in May, Snap said “large advertisers in North America remained a headwind to advertising growth,” but that it was “beginning to see encouraging signs that this part of the business is improving.”
While the number of global daily active users increased 5% from a year earlier, North American DAU declined 7% year-over-year to 92 million and was flat compared to the first quarter.
Snap lifted its full-year infrastructure costs by $50 million to between $1.65 billion and $1.7 billion. The company said that figure accounts for “additional investment in the AI and machine learning infrastructure needed to support revenue growth.”
Snap’s other revenue category, which includes the Snapchat+ subscription service, rose 85% year-over-year to $316 million in the second quarter.
Snap revealed in June its first augmented reality glasses tailored for the broader public instead of developers. The AR glasses, dubbed Specs, will cost $2,195 with a $200 refundable deposit, and are expected to ship later this year.
Wall Street was tough on Snap’s fellow online ad companies last week.
Reddit reported second-quarter earnings on Thursday that beat on the top and bottom lines, but noted in an investor letter search-referral traffic was “choppy,” stroking Wall Street’s concerns about user growth and sending shares tumbling.
And Meta shares dropped after the social media giant issued a weaker-than-expected sales forecast and reported dwindling free-cash flow due to its hefty spending on AI-related expenditures.
