Social network Snapchat (NYSE: SNAP) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
Snap met analysts’ revenue expectations last quarter, reporting revenues of $1.34 billion, up 8.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and revenue in line with analysts’ estimates. It reported 469 million daily active users, up 8.6% year on year.
Is Snap a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Snap’s revenue to grow 8.6% year on year to $1.49 billion, slowing from the 15.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Snap has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Snap’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 67.9%, beating analysts’ expectations by 6.3%, and Meta reported revenues up 26.2%, topping estimates by 3.4%. Reddit traded up 7.5% following the results while Meta was down 11.4%.
Read our full analysis of Reddit’s results here and Meta’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Snap is down 8.8% during the same time and is heading into earnings with an average analyst price target of $9.23 (compared to the current share price of $7.77).
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