Snap stock (NYSE: SNAP) rose sharply after the social media company reported second-quarter revenue above Wall Street expectations and issued a third-quarter sales forecast, with the upper end exceeding analysts’ projections.
Shares surged as much as 11% in after-hours trading Monday. Snap traded at $5.52 in the extended session, up 9.52% from the previous close, after gaining 7.46% to finish the regular session at $5.04.
Why Is SNAP Stock Rising?
The main catalyst was Snap’s stronger-than-expected second-quarter revenue.
Snap reported a second-quarter 2026 loss of 10 cents per share, matching analysts’ expectations. Revenue reached $1.60 billion, topping analysts’ consensus estimate of $1.54 billion.
The company’s third-quarter guidance also supported the stock. Snap expects revenue of $1.70 billion to $1.74 billion, compared with analysts’ estimate of $1.70 billion. Adjusted EBITDA is projected at between $300 million and $350 million.
Advertising Revenue Gains Momentum
Advertising revenue increased 9% year over year to $1.28 billion, supported in part by higher spending linked to the FIFA World Cup.
Chief Executive Evan Spiegel said Snap saw improved momentum among large advertisers in North America, stronger international revenue growth and continued demand from small and medium-sized businesses.
The improvement followed several quarters of work on Snap’s advertising products and go-to-market strategy.
Snap User Growth Continues
Snap’s daily active users (DAUs) increased to 493 million in the second quarter from 483 million in the first quarter. Monthly active users rose to 971 million from 956 million.
However, investors are still monitoring muted daily active-user growth, softer international engagement trends and widening sequential quarterly losses.
Those concerns remain important because advertising revenue from Snap’s flagship social media platform remains the company’s cash cow.
SPECS and Augmented Reality Remain Long-Term Bets
Snap is also continuing to invest in augmented reality (AR).
The company recently introduced SPECS, a pair of see-through augmented-reality glasses priced at $2,195. Spiegel described the product as Snap’s largest long-term opportunity and part of a future in which artificial intelligence performs more tasks on users’ behalf.
Snap also operates Lens Studio, which allows developers, artists and creators to build augmented-reality experiences for its products. The platform includes generative artificial-intelligence tools.
What Drove the SNAP Stock Rally?
The immediate rise in Snap stock (NYSE: SNAP) was driven primarily by three factors: quarterly revenue that exceeded expectations, stronger advertising momentum, and third-quarter guidance that left room for sales to come in above Wall Street’s forecast.
The rally reflects improved near-term business performance, although trends in user engagement, ongoing losses, and spending on Snap’s augmented reality ambitions remain key concerns for investors.
