Snap stock jumps 12% on earnings beat and strong sales forecast

Snap Inc. reported stronger-than-expected second-quarter revenue and earnings on August 3, 2026, pushing its shares up more than 10% in extended trading.

Revenue jumped 19% from a year earlier to $1.34 billion. The net loss narrowed to $164 million, or 16 cents per share, from $262.6 million a year ago. Adjusted earnings reached $250 million, exceeding the $192 million StreetAccount estimate.

For the third quarter, Snap projects sales between $1.7 billion and $1.74 billion, surpassing analyst expectations of $1.7 billion. Adjusted earnings guidance of $300 million to $350 million gives a midpoint of $325 million, slightly below StreetAccount’s $327 million projection. The company also raised its full-year infrastructure cost forecast by $50 million to between $1.65 billion and $1.7 billion, citing additional investment in artificial intelligence and machine learning.

Global daily active users grew 5% from the year-ago period. In North America, however, the figure dropped 7% to 92 million and was flat compared with the first quarter. Revenue from Snap’s other category, which includes the Snapchat+ subscription service, surged 85% to $316 million. In June 2026, the company unveiled Specs, its first augmented reality glasses for the general public, priced at $2,195 with a $200 deposit; they are expected to ship later this year.

CEO Evan Spiegel said in an investor letter that the results showed “improving momentum in our advertising business.” He noted better momentum with large advertisers in North America and stronger international revenue growth, partly boosted by spending tied to the World Cup. That marks a turnaround from May 2026, when Snap had described large North American advertisers as a headwind.

The earnings arrive amid a challenging stretch for online ad companies. Reddit reported second-quarter results on July 30, 2026 that beat estimates but flagged choppy search-referral traffic. In late July, Meta’s shares fell after it issued a weaker sales forecast and reported dwindling free cash flow from heavy AI investments.