Snap Shares Fall Over 10% After Mixed Q3 Results
Direct answer: Snap, the company behind Snapchat, reported mixed results for the third quarter of 2026 on November 4. Revenue grew, and the company moved into profit, but daily users came in below forecasts. Shares fell more than 10% in after hours trading.
What happened
Snap reported revenue of $1.722 billion for the quarter ended September 30, 2026, up 14% from $1.507 billion a year earlier, according to its own results release, reported by BusinessWire. That was slightly below the $1.73 billion analysts had expected.
Net income was $56 million, compared with a net loss of $104 million in the same quarter a year earlier. Adjusted EBITDA, a measure of operating profit that leaves out some costs, was $383 million, up from $182 million a year earlier and above the $337 million analysts had expected.
Daily active users reached 495 million, below the 499 million forecast. Monthly active users were 977 million. Snap also said it will stop reporting daily users from the first quarter of 2027 and will focus on monthly users instead.
For the fourth quarter, Snap guided revenue of $1.95 billion to $1.99 billion, broadly in line with expectations. In after hours trading, shares fell about 10% to about $5.33, from a $5.92 close.
Why it matters for beginners
This result shows why one headline number is rarely the whole story. Revenue rose, profit improved, and costs grew only slowly, yet the market focused on user growth coming in short. For a social media company, users are the base that advertisers pay to reach, so a miss there can matter more than a small profit beat.
It also shows how fast shares can move after results. After hours trading happens outside normal market hours, and prices can swing sharply before the next regular session. A single quarter does not decide a company’s future, but it can change how investors view its near term growth.
For a reminder of how one company result fits into a wider plan, see our beginner guide to what risk means in investing.
What to watch next
Watch the regular trading session after the after hours fall, to see whether the drop holds or eases. Watch Snap’s fourth quarter revenue, to see whether it lands inside the $1.95 billion to $1.99 billion range. Also watch monthly user numbers in future reports, since Snap is changing how it reports users from early 2027.
FAQ
Question: Did Snap lose money in the quarter?
Answer: No. Snap reported net income of $56 million, after a $104 million loss a year earlier.
Question: Why did shares fall if profit improved?
Answer: Because revenue of $1.722 billion was slightly below the $1.73 billion expected, and daily users of 495 million missed the 499 million forecast. Investors weighed those misses more heavily than the profit improvement.
Question: What is adjusted EBITDA?
Answer: It is a profit measure that leaves out items such as interest, tax, depreciation, and some other costs. It can help compare operating performance, but it is not the same as net income, so read both figures together.
Question: Is this a buy or sell recommendation?
Answer: No. This article explains the news only. It does not recommend buying or selling any share.
Sources: Snap Inc., Snap Inc. Announces Third Quarter 2026 Financial Results, BusinessWire, November 4, 2026, linked here; CNBC coverage of Snap Q3 results via TechBooky, November 4, 2026, linked here
This article is for general information and education only. It is not legal or financial advice.
