Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing SNAP more generously than it does today.
Analysis OverviewHoldUpdated May 1, 2026
Snap Inc. (SNAP) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
72
analysts
29 bullish · 5 bearish · 72 covering SNAP
Strong Buy
0
Buy
29
Hold
38
Sell
5
Strong Sell
0
Consensus Target
$8
+28.7% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
72
Published analyst ratings
Valuation Context
—
Forward P/E · Market cap $10.4B
SNAP price targets
Three scenarios for where SNAP stock could go
Current
~$6
Confidence
58 / 100
Updated
May 1, 2026
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Snap Inc.
SNAP · NYSECommunication ServicesInternet Content & InformationDecember year-end
Snap Inc. is a social media company best known for its Snapchat app, which enables visual communication through ephemeral photos and videos. It generates nearly all its revenue from digital advertising — primarily through Snap Ads and AR advertising — with a small portion from hardware sales like Spectacles. Its competitive advantage lies in its strong engagement with younger demographics and its pioneering work in augmented reality features that competitors struggle to replicate.
Market Cap
$10.4B
Revenue TTM
$6.1B
Net Income TTM
-$410M
Net Margin
-6.7%
SNAP Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
+105.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$0.04/$-0.13
Revenue
$1.4B/$1.3B
Q3 2025
EPS
$-0.13/$-0.16
Revenue
$1.3B/$1.4B
Q4 2025
EPS
$0.06/$-0.12
Revenue
$1.5B/$1.5B
Q1 2026
EPS
$0.03/$-0.03
Revenue
$1.7B/$1.7B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.04/$-0.13 | +130.0% | $1.4B/$1.3B | +1.3% |
| Q3 2025 | $-0.13/$-0.16 | +18.8% | $1.3B/$1.4B | -0.4% |
| Q4 2025 | $0.06/$-0.12 | +149.2% | $1.5B/$1.5B | +1.1% |
| Q1 2026 | $0.03/$-0.03 | +197.0% | $1.7B/$1.7B | +1.0% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$6.7B
+12.5% YoY
FY2
$7.4B
+10.6% YoY
EPS Outlook
FY1
$-0.18
+31.2% YoY
FY2
$-0.16
+12.3% YoY
Trailing FCF (TTM)$609M
FCF Margin: 10.0%
Next Earnings
May 6, 2026
Expected EPS
$0.08
Expected Revenue
$1.5B
SNAP beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
SNAP Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $5.9B
Product Mix
Latest annual revenue by segment or product family
Advertising Revenue
87.4%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
58.6%
+7.3% YoY
Tap, hover, or focus a slice to inspect segment detail.
Advertising Revenue is the largest disclosed segment at 87.4% of FY 2025 revenue, with no year-over-year comparison yet.
North America is the largest reported region at 58.6%, up 7.3% YoY.
SNAP Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $25 — implies +297.4% from today's price.
Upside to Fair Value
297.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
SNAP
-22.7x
vs
S&P 500
25.2x
190% discount
vs Communication Services Trailing P/E
SNAP
-22.7x
vs
Communication Services
15.5x
246% discount
vs SNAP 5Y Avg P/E
Today
-22.7x
vs
5Y Average
—
Benchmark unavailable
Forward PE
—
S&P 500
19.1x
—
Communication Services
13.1x
—
5Y Avg
—
—
Trailing PE
-22.7x
S&P 500
25.2x
-190%
Communication Services
15.5x
-246%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.75x
—
Communication Services
0.66x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.3x
—
Communication Services
8.7x
—
5Y Avg
—
—
Price/FCF
23.7x
S&P 500
21.3x
+11%
Communication Services
11.6x
+105%
5Y Avg
56.7x
-58%
Price/Sales
1.7x
S&P 500
3.1x
-44%
Communication Services
1.0x
+66%
5Y Avg
6.5x
-73%
Dividend Yield
—
S&P 500
1.88%
—
Communication Services
3.38%
—
5Y Avg
—
—
| Metric | SNAP | S&P 500 | Communication Services | 5Y Avg SNAP |
|---|---|---|---|---|
| Forward PE | — | 19.1x | 13.1x | — |
| Trailing PE | -22.7x | 25.2x-190% | 15.5x-246% | — |
| PEG Ratio | — | 1.75x | 0.66x | — |
| EV/EBITDA | — | 15.3x | 8.7x | — |
| Price/FCF | 23.7x | 21.3x+11% | 11.6x+105% | 56.7x-58% |
| Price/Sales | 1.7x | 3.1x-44% | 1.0x+66% | 6.5x-73% |
| Dividend Yield | — | 1.88% | 3.38% | — |
SNAP trades above S&P 500 benchmarks on 1 of 3 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSNAP Financial Health
Verdict
Stressed
SNAP generates $609M in free cash flow at a 10.0% margin — returns 26.5% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$6.1B
Revenue Growth
TTM vs prior year
+10.3%
Gross Margin
Gross profit as a share of revenue
55.8%
Operating Margin
Operating income divided by revenue
-6.8%
Net Margin
Net income divided by revenue
-6.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-0.24
Free Cash Flow (TTM)
Cash generation after capex
$609M
FCF Margin
FCF as share of revenue — the primary cash quality signal
10.0%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-6.9%
ROA
Return on assets, trailing twelve months
-5.4%
Cash & Equivalents
Liquid assets on the balance sheet
$1.0B
Net Debt
Total debt minus cash
$3.7B
Debt Serviceability
Net debt as a multiple of annual free cash flow
6.0× FCF
~6.0 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
-18.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
26.5%
Dividend
—
Buyback
26.5%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$2.7B
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
1.7B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageSNAP Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Profitability Concerns
Snap has consistently posted net losses despite revenue growth, primarily due to high stock-based compensation expenses. This ongoing struggle with profitability significantly impacts its earnings before interest, taxes, depreciation, and amortization (EBITDA).
High Risk
Cash Burn and Dilution
The company's cash burn rate, particularly related to its Specs business, raises concerns about future share dilution. This, combined with substantial stock-based compensation, may necessitate potential restructuring to stabilize finances.
High Risk
Altman Z-Score
Snap's Altman Z-Score of -0.54 places it in the distress zone, indicating a heightened risk of bankruptcy within the next two years. This financial instability poses a significant threat to its long-term viability.
High Risk
Child Safety Investigations
Snap is under scrutiny from regulators in the UK and the European Commission regarding its child-safety practices. These investigations could lead to fines, mandated product changes, and increased compliance costs, impacting financial performance.
Medium
Intense Social Media Competition
Snap faces fierce competition from established players like Meta and emerging platforms like TikTok. This intense rivalry threatens Snap's market share and user engagement, particularly with Instagram's features directly challenging Snapchat.
Medium
Advertising Market Pressure
The digital advertising market is highly competitive, with Snap competing for ad spend against larger platforms with more extensive user ecosystems. This pressure could limit Snap's revenue growth and profitability.
Medium
User Growth and Engagement
While Snap continues to grow its user base, the growth rate of daily active users is showing signs of slowing. This trend may be attributed to competition from TikTok and YouTube Shorts, which could hinder Snap's long-term growth prospects.
Lower
Stock Volatility
Snap's stock exhibits high volatility, with a beta of 1.23, indicating sensitivity to market movements. This volatility can lead to unpredictable stock performance, affecting investor sentiment.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why SNAP Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
AR Leadership and Innovation
Snap has invested heavily in building a vertically integrated AR platform, positioning itself as a leader in this emerging technology. The company's AR-first philosophy and proprietary tools are seen as a significant long-term advantage, with plans to launch its AR glasses, 'Specs,' for consumers in 2026.
Growing Engagement and User Base
Despite competition, Snap continues to grow its monthly active users (MAUs), reaching 932 million as of Q2 2025. Engagement across key verticals like Snapchat+ subscribers, games, Spotlight, and video chat has also seen significant year-over-year increases.
Monetization and Subscription Growth
The company is demonstrating progress in monetizing its user base, with a rising annual revenue run-rate from Snapchat+ subscribers reaching $700 million. Snapchat+ subscribers grew 71% year-over-year to 24 million.
Cost Reductions and Profitability Focus
Snap has implemented significant cost-saving measures, including job cuts and restructuring, targeting over $500 million in annualized savings by the second half of 2026. These efforts are aimed at creating a clearer path to net income profitability.
New Ad Formats
The introduction of new ad formats, such as 'AI Sponsored Snaps,' is expected to drive margin improvement and revenue growth.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
SNAP Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$6.13
52W Range Position
35%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$3.81
+60.9% from the low
52-Week High
$10.41
-41.1% from the high
1 Month
+29.87%
3 Month
+17.43%
YTD
-24.6%
1 Year
-26.7%
3Y CAGR
-10.0%
5Y CAGR
-34.9%
10Y CAGR
-12.9%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
SNAP vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
—
vs 20.2x median
Peer median unavailable
Revenue Growth
+12.5%
vs +14.1% median
-11% below peer median
Net Margin
-6.7%
vs 28.6% median
-124% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
SNA SNAP Snap Inc. | $10.4B | — | +12.5% | -6.7% | Hold | +28.7% |
MET META Meta Platforms, Inc. | $1.55T | 20.2x | +16.1% | 32.8% | Buy | +34.1% |
PIN PINS Pinterest, Inc. | $14.1B | 11.6x | +13.2% | 7.6% | Buy | +19.8% |
RDD RDDT Reddit, Inc. | $31.9B | 40.6x | +30.7% | 28.6% | Buy | +37.0% |
BMB BMBL Bumble Inc. | $378M | 3.5x | -3.3% | -71.0% | Hold | +23.9% |
GOO GOOGL Alphabet Inc. | $4.81T | 29.6x | +14.1% | 37.9% | Buy | +2.1% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
SNAP Dividend and Capital Return
SNAP returns 7.2% annually — null% through dividends and 7.2% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
7.2%
Dividend + buyback return per year
Buyback Yield
7.2%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$2.7B
Estimated Shares Retired
448M
Approx. Share Reduction
26.5%
Shares Outstanding
Current diluted share count from the screening snapshot
1.7B
At 26.5%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
FAQ
7 questionsSNAP Investor Questions
Common questions answered from live analyst data and company financials.
01Is Snap Inc. (SNAP) stock a buy or sell in 2026?
Snap Inc. (SNAP) is rated Hold by Wall Street analysts as of 2026. Of 72 analysts covering the stock, 29 rate it Buy or Strong Buy, 38 rate it Hold, and 5 rate it Sell or Strong Sell. The consensus 12-month price target is $8, implying +28.7% from the current price of $6.
02What is the SNAP stock price target for 2026?
The Wall Street consensus price target for SNAP is $8 based on 72 analyst estimates. The high-end target is $15 (+144.7% from today), and the low-end target is $5 (-14.4%).
03Is Snap Inc. (SNAP) stock overvalued in 2026?
Forward earnings data for SNAP is not currently available. Review the valuation table above for trailing P/E, EV/EBITDA, and price-to-sales comparisons against market and sector benchmarks.
04What are the main risks for Snap Inc. (SNAP) stock in 2026?
The primary risks for SNAP in 2026 are: (1) Profitability Concerns — Snap has consistently posted net losses despite revenue growth, primarily due to high stock-based compensation expenses. (2) Cash Burn and Dilution — The company's cash burn rate, particularly related to its Specs business, raises concerns about future share dilution. (3) Altman Z-Score — Snap's Altman Z-Score of -0. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Snap Inc.'s revenue and earnings forecast?
Analyst consensus estimates SNAP will report consensus revenue of $6.7B (+12.5% year-over-year) and EPS of $-0.18 (+31.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $7.4B in revenue.
06When does Snap Inc. (SNAP) report its next earnings?
Snap Inc. is expected to report its next earnings on approximately 2026-05-06. Consensus expects EPS of $0.08 and revenue of $1.5B. Over recent quarters, SNAP has beaten EPS estimates 92% of the time.
07How much free cash flow does Snap Inc. generate?
Snap Inc. (SNAP) generated $609M in free cash flow over the trailing twelve months — a free cash flow margin of 10.0%. SNAP returns capital to shareholders through and share repurchases ($2.7B TTM).