Snap shares sank more than 10% when the Snapchat parent reported third‑quarter results that fell short of analyst forecasts for revenue and global daily active users (DAU). Revenue came in at $1.72 billion versus the $1.73 billion expected, and DAU reached 495 million against the 499 million consensus. Adjusted earnings per share were $0.19, topping the $0.16 estimate, while average revenue per user matched expectations at $3.48.
Sales rose 14% year‑over‑year, and the company posted a net income of $56 million, reversing a $104 million loss from the prior year. Adjusted earnings for the quarter were $383 million, exceeding the $337 million analysts projected.
For the fourth quarter, Snap guided revenue between $1.95 billion and $1.99 billion, with the midpoint above Wall Street’s $1.95 billion estimate. Adjusted earnings were forecast at $490 million to $525 million, compared with the $498 million consensus. The firm announced that globally monthly active users (MAU) will become its primary audience metric starting in Q1 2027 and reported 977 MAU for the quarter, emphasizing a shift away from optimizing solely for daily engagement.
Chief commercial officer Ronan Harris said lower spending by unspecified consumer packaged goods companies, driven by macro pressures in the U.S. and the Middle East, weighed on Q3 sales. He noted positive growth signs in diversified verticals such as U.S. financial services, indicating a strategic focus beyond CPG. The available reporting does not provide further detail on how these factors may affect future performance.