Zacks Research Has Positive Forecast for Snap Q3 Earnings

Snap Inc. (NYSE:SNAP) – Stock analysts at Zacks Research lifted their Q3 2026 earnings per share (EPS) estimates for shares of Snap in a report issued on Monday, August 24th. Zacks Research analyst Team now forecasts that the company will earn ($0.03) per share for the quarter, up from their prior forecast of ($0.06). Zacks Research has a “Strong Sell” rating on the stock. The consensus estimate for Snap’s current full-year earnings is ($0.05) per share. Zacks Research also issued estimates for Snap’s Q1 2027 earnings at ($0.02) EPS, Q2 2027 earnings at ($0.04) EPS, Q3 2027 earnings at $0.01 EPS, Q4 2027 earnings at $0.07 EPS, FY2027 earnings at $0.02 EPS, Q1 2028 earnings at $0.01 EPS, Q2 2028 earnings at ($0.01) EPS and FY2028 earnings at $0.11 EPS.

Several other research firms also recently commented on SNAP. Truist Financial cut their target price on shares of Snap from $8.00 to $7.00 and set a “hold” rating on the stock in a research report on Tuesday, August 4th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Snap in a research note on Friday, July 17th. UBS Group set a $6.00 price target on shares of Snap in a report on Tuesday, August 4th. Sanford C. Bernstein reiterated a “market perform” rating and set a $5.00 price target on shares of Snap in a report on Tuesday, July 21st. Finally, Wall Street Zen raised shares of Snap from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Two analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, twenty-three have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $7.65.

Snap Stock Performance

Snap stock opened at $5.41 on Thursday. The business has a 50 day moving average of $4.88 and a 200-day moving average of $5.13. The company has a market capitalization of $9.15 billion, a P/E ratio of -30.05 and a beta of 1.03. Snap has a 1 year low of $3.81 and a 1 year high of $9.28. The company has a debt-to-equity ratio of 1.75, a current ratio of 2.94 and a quick ratio of 2.94.

Snap (NYSE:SNAP) last announced its quarterly earnings results on Monday, August 3rd. The company reported ($0.10) EPS for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.02. The firm had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.54 billion. Snap had a negative return on equity of 14.61% and a negative net margin of 4.90%.The business’s revenue for the quarter was up 18.9% on a year-over-year basis. During the same period last year, the firm posted ($0.16) earnings per share.

Insider Transactions at Snap

In related news, CTO Robert C. Murphy sold 2,000,000 shares of Snap stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $5.55, for a total transaction of $11,100,000.00. Following the completion of the transaction, the chief technology officer owned 41,809,791 shares of the company’s stock, valued at $232,044,340.05. This trade represents a 4.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Ajit Mohan sold 54,608 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $5.20, for a total transaction of $283,961.60. Following the completion of the transaction, the insider owned 4,972,097 shares in the company, valued at approximately $25,854,904.40. The trade was a 1.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 2,770,698 shares of company stock worth $15,345,605. Company insiders own 22.68% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SNAP. Alyeska Investment Group L.P. acquired a new stake in shares of Snap in the 3rd quarter valued at about $176,697,000. AQR Capital Management LLC raised its stake in Snap by 874.3% during the 4th quarter. AQR Capital Management LLC now owns 10,066,852 shares of the company’s stock worth $81,239,000 after buying an additional 9,033,644 shares during the period. Empyrean Capital Partners LP acquired a new position in Snap during the 1st quarter worth approximately $25,300,000. California State Teachers Retirement System boosted its holdings in Snap by 268.8% in the second quarter. California State Teachers Retirement System now owns 5,623,318 shares of the company’s stock worth $24,968,000 after acquiring an additional 4,098,404 shares in the last quarter. Finally, Assenagon Asset Management S.A. grew its holdings in shares of Snap by 1,191.8% during the second quarter. Assenagon Asset Management S.A. now owns 3,903,141 shares of the company’s stock valued at $17,330,000 after buying an additional 3,601,002 shares during the last quarter. 47.52% of the stock is owned by institutional investors.

Snap News Roundup

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Zacks Research raised multiple earnings forecasts. Estimates were increased for Snap’s third-quarter 2026 EPS to $(0.03) from $(0.06), fiscal 2027 EPS to $0.02 from $(0.16), and fiscal 2028 EPS to $0.11 from $(0.07). The revisions suggest analysts see a potentially faster path toward profitability, although the firm still maintains a “Strong Sell” rating.
• Neutral Sentiment: Snap expanded its Saudi Arabia communications team. The appointment of Rowan Saghayroun as Head of Communications for Saudi Arabia underscores the company’s focus on regional engagement, regulatory outreach and international growth, but the move is unlikely to have an immediate financial impact. Does Snap Need a Saudi Communications Chief to Grow Its Middle East Story?
• Neutral Sentiment: Options activity showed increased bullish speculation. Traders purchased 155,956 call options Tuesday, about 83% above typical call volume. This may indicate speculative interest but does not establish a fundamental change in Snap’s outlook.
• Negative Sentiment: Pennsylvania sued Snap over alleged youth-safety and design practices. The attorney general alleges Snapchat misleads parents about mature content and uses features such as Snapstreaks and infinite scroll to encourage compulsive use among minors. Potential civil penalties, mandated product changes and restrictions on marketing or access could increase costs and threaten user engagement and advertising monetization. Youth Engagement Lawsuit Could Be a Game Changer for Snap’s Core Monetization Model

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.