Snap Inc. (NYSE: SNAP) Stock Analysis: Revenue Growth and Narrower Loss

• Snap Inc. (NYSE: SNAP) reported second-quarter revenue of $1.60 billion, a 19% year-over-year increase that exceeded analyst expectations.
• Despite strong revenue growth, the company reported an adjusted loss of $0.10 per share, compared with the expected loss of $0.12 per share.
• The social media company also made progress toward profitability, narrowing its net loss to $164 million from $263 million in the prior year.

On August 4, 2026, Goldman Sachs maintained a Neutral rating on Snap Inc. The rating indicates that the firm sees a balanced risk-reward outlook for the stock. At the time of the rating, Snap shares were trading at approximately $5.05.

Snap’s revenue performance remained strong. For the second quarter, the company reported revenue of $1.60 billion, compared with $1.35 billion in the same quarter a year earlier. Revenue exceeded analyst expectations of approximately $1.54 billion.

However, Snap remained unprofitable. The company reported an adjusted loss of $0.10 per share, better than the expected loss of $0.12 per share. This result represents a positive earnings surprise rather than an earnings miss.

Snap also narrowed its net loss to $164 million from $263 million in the prior year. Adjusted EBITDA increased significantly to approximately $250 million from $41 million a year earlier, indicating improved operating leverage.

Looking ahead, Snap expects third-quarter revenue between $1.70 billion and $1.74 billion, with a midpoint of $1.72 billion. This is slightly above analysts’ estimate of approximately $1.70 billion.

CEO Evan Spiegel cited improving momentum in the company’s advertising business. Advertising revenue increased 9% year-over-year to $1.28 billion, while revenue from Snap’s other products, including Snapchat+ and Memories Storage, increased 85% to $316 million.

Snap’s stronger-than-expected results initially lifted the stock in premarket trading. However, investors will continue to monitor advertising growth, daily active users, and the company’s ability to achieve sustainable profitability.