Zacks Research Weighs in on Snap’s Q1 Earnings (NYSE:SNAP)

Snap Inc. (NYSE:SNAP) – Investment analysts at Zacks Research raised their Q1 2026 earnings estimates for Snap in a note issued to investors on Tuesday, February 24th. Zacks Research analyst Team now forecasts that the company will post earnings of ($0.09) per share for the quarter, up from their prior forecast of ($0.12). The consensus estimate for Snap’s current full-year earnings is ($0.30) per share. Zacks Research also issued estimates for Snap’s Q3 2026 earnings at ($0.05) EPS, Q4 2026 earnings at $0.00 EPS, FY2026 earnings at ($0.25) EPS, Q1 2027 earnings at ($0.06) EPS, Q2 2027 earnings at ($0.04) EPS, Q3 2027 earnings at ($0.02) EPS, Q4 2027 earnings at $0.00 EPS and FY2027 earnings at ($0.12) EPS.

A number of other analysts have also weighed in on the company. Mizuho lowered their target price on Snap from $9.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, February 5th. Evercore restated a “mixed” rating on shares of Snap in a research report on Thursday, February 5th. Citigroup dropped their target price on shares of Snap from $10.00 to $6.00 and set a “neutral” rating for the company in a research note on Thursday, February 12th. JPMorgan Chase & Co. decreased their price target on shares of Snap from $8.00 to $7.00 and set an “underweight” rating on the stock in a research note on Thursday, February 5th. Finally, BMO Capital Markets boosted their price objective on shares of Snap from $12.00 to $13.00 and gave the stock an “outperform” rating in a research report on Thursday, November 6th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, twenty have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $8.17.

Snap Trading Down 1.0%

Shares of SNAP opened at $5.21 on Friday. The company has a debt-to-equity ratio of 1.53, a quick ratio of 3.56 and a current ratio of 3.56. The company has a market cap of $8.79 billion, a price-to-earnings ratio of -19.28 and a beta of 0.83. The stock has a fifty day moving average price of $6.79 and a two-hundred day moving average price of $7.42. Snap has a 52-week low of $4.65 and a 52-week high of $10.41.

Snap (NYSE:SNAP) last posted its earnings results on Wednesday, February 4th. The company reported $0.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.12). The firm had revenue of $1.72 billion during the quarter, compared to the consensus estimate of $1.70 billion. Snap had a negative net margin of 7.76% and a negative return on equity of 20.72%. The business’s revenue was up 10.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.01 EPS.

Insider Buying and Selling at Snap

In other Snap news, CAO Rebecca Morrow sold 16,499 shares of the company’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total transaction of $77,545.30. Following the completion of the sale, the chief accounting officer owned 466,682 shares in the company, valued at approximately $2,193,405.40. The trade was a 3.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Ajit Mohan sold 119,339 shares of the stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $4.70, for a total value of $560,893.30. Following the completion of the transaction, the insider directly owned 5,158,477 shares in the company, valued at approximately $24,244,841.90. This trade represents a 2.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 2,526,487 shares of company stock valued at $13,435,587 over the last 90 days. Company insiders own 22.68% of the company’s stock.

Institutional Investors Weigh In On Snap

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Empowered Funds LLC boosted its holdings in Snap by 13.3% during the first quarter. Empowered Funds LLC now owns 40,393 shares of the company’s stock worth $352,000 after buying an additional 4,754 shares during the last quarter. Asset Management One Co. Ltd. raised its position in shares of Snap by 1.8% in the 2nd quarter. Asset Management One Co. Ltd. now owns 400,739 shares of the company’s stock valued at $3,482,000 after acquiring an additional 7,104 shares during the period. Envestnet Asset Management Inc. boosted its stake in Snap by 18.6% during the 2nd quarter. Envestnet Asset Management Inc. now owns 27,566 shares of the company’s stock worth $240,000 after acquiring an additional 4,332 shares during the last quarter. Y Intercept Hong Kong Ltd bought a new position in Snap during the 2nd quarter worth approximately $2,723,000. Finally, Teacher Retirement System of Texas grew its holdings in Snap by 5.2% during the second quarter. Teacher Retirement System of Texas now owns 164,086 shares of the company’s stock valued at $1,426,000 after purchasing an additional 8,178 shares during the period. Institutional investors own 47.52% of the company’s stock.

Key Headlines Impacting Snap

Here are the key news stories impacting Snap this week:

• Positive Sentiment: Zacks Research raised multiple quarterly and annual EPS forecasts for Snap across 2026–2027 (examples: FY2026 to -$0.25 from -$0.35; FY2027 to -$0.12 from -$0.26), reflecting expectations for gradual margin improvement and a path toward profitability. These upward revisions are bullish for future earnings expectations.
• Positive Sentiment: Zacks specifically lifted several quarterly outlooks (Q1–Q4 2026 and Q1–Q4 2027), including turning Q4 2026/2027 forecasts to ~$0.00 EPS in some cases — signaling analyst confidence that Snap’s revenue growth and cost discipline could drive break-even quarters. Snap Inc. (SNAP) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Media/market attention is increasing (Zacks highlighted SNAP as attracting interest), which can raise volume and volatility but does not by itself guarantee a directional move.
• Negative Sentiment: Fundamentals remain a concern: Snap missed EPS in its most recent quarterly report (Feb 4), still posts negative net margins and negative ROE, and consensus forecasts for the near term remain loss-making (analysts still model FY2026 around -$0.25 to -$0.30). Those factors limit upside and keep valuation risk elevated.
• Negative Sentiment: Technicals and balance-sheet context are mixed: SNAP is trading below its 50- and 200-day moving averages, has a debt-to-equity ratio above 1.5, and recently traded near its 52-week low — all of which can pressure the stock while it repairs profitability.

Snap Company Profile

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.