Q1 26 EPS
$-0.05
BEAT +29.38%
Est. $-0.07
Q1 26 Revenue
$1.53B
BEAT +0.08%
Est. $1.53B
vs S&P Since Q1 26
-26.3%
TRAILING MARKET
SNAP -23.5% vs S&P +2.8%
Market Reaction
Did SNAP Beat Earnings? Q1 2026 Results
Snap delivered a cleaner-than-expected first quarter for fiscal 2026, posting a loss of $0.05 per share against a consensus estimate of $0.07, a 29.38% beat, while revenue of $1.53 billion grew 12.2% year-over-year and edged just ahead of Wall Street… Read more Snap delivered a cleaner-than-expected first quarter for fiscal 2026, posting a loss of $0.05 per share against a consensus estimate of $0.07, a 29.38% beat, while revenue of $1.53 billion grew 12.2% year-over-year and edged just ahead of Wall Street's forecast. The most material driver behind the upside was a sharp acceleration in Snapchat+ subscriptions and adjacent offerings, which pushed the Other Revenue segment up 87% to $285 million and more than offset continued softness in advertising, where large North America brands and an estimated $20 to $25 million in geopolitical headwinds from the Middle East weighed on ad revenue growth. Adjusted EBITDA more than doubled to $233.33 million as free cash flow surged 150% to $286.01 million, signaling improving operating leverage. Still, North America daily active users fell 7% year-over-year to 92 million, a persistent concern that contributed to a notable after-hours stock decline. Looking ahead, Snap guided Q2 revenue of $1.52 billion to $1.55 billion and Adjusted EBITDA of $175 million to $200 million, with a restructuring expected to reduce annualized costs by more than $500 million in the second half of 2026.
Key Takeaways
- • Other Revenue surged 87% YoY to $285 million driven by Snapchat+ subscriptions, Memories Storage, and Lens+
- • Dynamic Product Ads revenue grew more than 30% year-over-year
- • SMBs grew spend by more than 30% YoY in North America and accounted for over 30% of global ad revenue
- • Adjusted EBITDA flow through of 75% on year-over-year revenue growth
- • Adjusted Gross Margin improved 3 percentage points YoY to 57%
- • App Purchases revenue grew 87% year-over-year
- • Goal-based bidding revenue grew 27% year-over-year
- • Nearly 70% of advertising spend uses at least one AI-powered automation solution
SNAP Forward Guidance & Outlook
For Q2 2026, Snap guided revenue of $1.52 billion to $1.55 billion and Adjusted EBITDA of $175 million to $200 million. The guidance assumes no contribution from Perplexity after amicably ending the relationship in Q1, and that the operating environment in the Middle East remains consistent with March/April headwinds. Infrastructure costs are expected to grow modestly year-over-year in Q2. The recently announced restructuring will have a partial period benefit in Q2, with full Adjusted Operating Expenses and SBC reductions more fully reflected in Q3 and beyond. Pre-tax restructuring charges of $95 million to $130 million are expected, primarily in Q2. The restructuring is expected to reduce annualized cost structure by more than $500 million in the second half of 2026. The company aims for Adjusted Gross Margin of 60% or better for fiscal 2026. The commercial launch of Specs is expected later in 2026.
SNAP YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
SNAP Revenue by Segment
With YoY comparisons, source: SEC Filings
SNAP Revenue by Geography
With YoY comparisons, source: SEC Filings
“In Q1, we returned to growth in daily active users, accelerated revenue growth, expanded margins, and generated strong free cash flow.”
— Evan Spiegel, Q1 2026 Earnings Press Release
SNAP Earnings Trends
SNAP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SNAP EPS Trend
Earnings per share: estimate vs actual
SNAP Revenue Trend
Quarterly revenue: estimate vs actual
SNAP Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $-0.07 | $-0.05 | +29.38% | $1.53B | +0.08% |
| Q4 25 BEAT FY | $-0.03 | $0.03 | +189.02% | $1.72B | +0.96% |
| FY Full Year | $-0.33 | $-0.27 | +19.28% | $5.93B | +0.26% |
| Q3 25 BEAT | $-0.12 | $-0.06 | +50.58% | $1.51B | +1.11% |
| Q2 25 MISS | $0.02 | $-0.16 | -1,132.26% | $1.34B | -0.05% |
| Q1 25 MISS | $0.04 | $-0.08 | -327.27% | $1.36B | +1.35% |