Snap Inc exceeded Wall Street expectations for the second quarter of 2026 after stronger advertising revenue, fuelled in part by increased marketing spend during the FIFA World Cup, lifted quarterly sales above analysts’ forecasts.
The parent company of Snapchat reported second-quarter revenue of US$1.60 billion, surpassing analysts’ expectations of US$1.54 billion. The company posted a loss of 10 US cents per share, in line with market forecasts.
The stronger-than-expected results prompted investors to react positively, with Snap’s Class A shares rising 10.5 per cent in after-hours trading.
Advertising revenue, the company’s principal source of income, increased 9 per cent year-on-year to US$1.28 billion. Snap attributed the growth to stronger spending by major advertisers in North America, improved international performance and heightened advertising activity linked to the FIFA World Cup.
Co-founder and Chief Executive Officer Evan Spiegel said the company had benefited from sustained improvements to its advertising products and sales strategy.
”After several quarters of improving our ad products and go-to-market approach, we saw better momentum with large advertisers in North America and stronger revenue growth internationally. World Cup-related spending contributed during the quarter, alongside continued strength among small and medium-sized businesses,” Spiegel said.
The company also highlighted its long-term investment in augmented reality following the recent launch of SPECS, its premium smart glasses priced at US$2,195. Spiegel described the product as a new computing platform designed to integrate artificial intelligence into everyday experiences through transparent eyewear.
”Our largest long-term opportunity is SPECS, a new kind of computer built into see-through glasses. SPECS are designed for a future in which AI does more work on our behalf and people spend less time operating screens,” he said.
Beyond hardware, Snap continues to expand its augmented reality ecosystem through Lens Studio, a platform that enables developers, artists and creators to build AR experiences powered by generative artificial intelligence.
Despite the encouraging financial performance, investors remain focused on challenges facing the company, including widening sequential quarterly losses and relatively modest growth in user engagement across international markets.
Daily active users rose to 493 million during the second quarter, up from 483 million in the previous quarter, while monthly active users increased from 956 million to 971 million.
Looking ahead, Snap forecast third-quarter revenue of between US$1.70 billion and US$1.74 billion, largely exceeding analysts’ consensus estimate of US$1.70 billion. The company also expects adjusted EBITDA to range between US$300 million and US$350 million.
The latest earnings suggest Snap’s efforts to strengthen its advertising business are yielding results, while the company continues investing in artificial intelligence and augmented reality technologies as part of its long-term growth strategy.
