- Snap also announced that its board of directors has authorized a stock repurchase program of up to $500 million of its Class A common stock.
- Snap’s Revenue from In-App Optimizations grew 89% year-over-year, supported by advances in foundational app models.
- The company estimates Q1’26 revenue to be between $1.50 billion to $1.53 billion.
Snap shares rallied on Wednesday after it posted a 10% jump in fourth quarter revenue helped by growth in In-App optimizations.
“Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth, translating into revenue diversification and meaningful margin expansion,” said Evan Spiegel, Snap CEO. “This progress reflects our commitment to building a more financially efficient and profitable business while continuing to invest in the future of augmented reality and the consumer launch of Specs.”
Snap also announced that its board of directors has authorized a stock repurchase program of up to $500 million of its Class A common stock.
Q4 Earnings
Snap’s fourth quarter revenue increased 10% year-over-year to $1.72 billion, beating analysts’ estimates of $1.7 billion, as per data from fiscal.ai.
Revenue from In-App Optimizations grew 89% year-over-year, supported by advances in foundational app models, broader adoption of the App Power Pack, and new immersive formats such as Playables.
Diluted net income per share attributable to common stockholders rose to $0.03 per share, compared to $0.01 it reported in the same quarter a year-ago. However the profit fell short of analyst expectations of $0.15 per share.
The company saw its global monthly active users (MAU) in Q4 reach 946 million, an increase of 51 million or 6% year-over-year.
Outlook
The company in prepared remarks ahead of its Q4 earnings call said, "For Q1 specifically, our guidance range for revenue is $1.50 billion to $1.53 billion,” It said the Q1 revenue guidance range excludes any potential revenue from the Perplexity integration as it is yet to mutually agree on a path to a broader roll out.”
The company estimates that Adjusted core profit will be between $170 million and $190 million in Q1.
“As we begin 2026, we are excited to execute on our pivot toward profitable growth and to make incremental progress toward our medium term goal of delivering meaningful Net Income profitability. The impacts of this strategic direction are already evident in our Q4 results, and we are incredibly proud of the work our team is doing to build on this momentum in Q1," it said.
The company said its full year cost structure guidance range for Infrastructure costs is $1.6 billion to $1.65 billion, which would represent flat year-over-year infrastructure costs at the low end.
How Did Stocktwits Users React?
Retail sentiment around SNAP trended in ‘extremely bullish’ territory amid ‘extremely high’ message volume.
One bullish user called its earnings results “positive”.
Another bullish user called the earnings “gold”.
Shares in the company have fallen 47% over the past year.
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