TLDR
- Snap stock fell about 11% in after-hours trading Wednesday after a small Q3 revenue miss.
- Revenue was $1.72 billion, up 14% from a year ago, and Snap posted $56 million in net income.
- Daily active users hit 495 million, below the roughly 499 million expected.
- Snap will make monthly active users its main audience metric starting in Q1 2027.
- Specs smart glasses start at $2,195 and are open for preorder.
Snap (SNAP) stock dropped about 11% in after-hours trading Wednesday, or roughly 65 cents. That came after the Snapchat parent reported third-quarter revenue just under Wall Street’s target.
Revenue came in at $1.72 billion, compared with $1.73 billion expected. Sales still rose 14% from a year earlier.
The bottom line moved the right way. Snap reported net income of $56 million, compared with a $104 million loss a year ago.
$SNAP Q3’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $1.72B (Est. $1.73B) 🔴; +14% YoY
🔹 EPS: $0.03 (Est. $0.00) 🟢
🔹 Adjusted EBITDA: $383M (Est. $337M) 🟢
🔹 Free Cash Flow: $164M (Est. $127M) 🟢Customers & Assets:
🔹 Daily Active Users: 495M (Est. 497.8M) 🔴
🔹 ARPU: $3.48 (Est.… pic.twitter.com/3rFy1yodpg— Wall St Engine (@wallstengine) November 4, 2026
Adjusted earnings of $383 million topped the $337 million analysts expected. For the fourth quarter, Snap guided adjusted earnings of $490 million to $525 million, against $498 million expected.
Daily Users Miss, and the Scoreboard Changes
Daily active users reached 495 million, short of the roughly 499 million analysts expected. Average revenue per user was $3.48, right in line with estimates.
Snap also said monthly active users will become its primary audience metric starting in the first quarter of 2027. The company reported 977 million monthly users for the third quarter.
The investor letter said Snap does not plan to optimize around daily use “at the expense of long-term value.” It added that a longer horizon fits its product and safety decisions better.
That announcement landed in the same report that showed the daily user miss. Snap gave no other reason for the timing.
Fourth-quarter revenue is guided to $1.95 billion to $1.99 billion. The $1.97 billion midpoint sits just above estimates of about $1.95 billion to $1.96 billion.
Ad Pressure and the Specs Bet
Chief commercial officer Ronan Harris said lower spending from consumer packaged goods companies hurt the quarter. He pointed to “macro pressures in the U.S. and also the Middle East.”
Harris said Snap is seeing positive growth in U.S. financial services. The plan is to look beyond CPG for traction.
CEO Evan Spiegel said advertising revenue growth “remains below our ambitions.” He added that advertisers are seeing the benefits of Snap’s performance improvements.
Snap’s Specs smart glasses start at $2,195 and are open for preorder. Shipping is expected to begin this fall.
The glasses come with an AI assistant called Specs Intelligence. It can connect to a user’s email and calendar to help with daily tasks.
Meta’s glasses lead the market, with a lighter design but no display. Snap stock was down 27% this year heading into the report.
It had gained 5.9% in regular trading Wednesday before the after-hours drop.
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