SNAP Gears Up to Report Q3 Earnings: What's in Store for the Stock?

Snap SNAP is scheduled to report its third-quarter 2025 results on Nov. 5.

The Zacks Consensus Estimate for Snap’s third-quarter revenues is currently pegged at $447.59 million, indicating a 0.24% increase from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at 17 cents per share, which has remained unchanged over the past 30 days, implying a 154% increase from the year-ago quarter’s loss of  31 cents.

SNAP surpassed the Zacks Consensus Estimate for earnings in three of the trailing four quarters, while missing it once, with an average positive surprise of 20.2%.

Snap Inc. Price and EPS Surprise

Snap Inc. price-eps-surprise | Snap Inc. Quote

Let us see how things are shaping up for the upcoming announcement.

Factors to Consider

Snap is expected to have entered the third quarter facing persistent challenges carried over from a difficult second quarter, when revenue growth slowed sharply to 9% year over year and advertising revenues rose modestly at 4%. The company is likely to have been still contending with the residual impact of an ad platform issue that caused campaigns to clear at discounted prices, depressing returns for advertisers and undermining auction dynamics, despite corrective measures implemented late in the prior quarter.

User trends in North America likely remained soft, with daily active users expected to have edged lower after a 2% year-over-year decline in the second quarter. The company’s ongoing shift from friend-based stories toward broader content sharing may have continued to weigh on engagement in its most monetizable market, limiting revenue recovery potential. Our model estimates, global daily active users at 476.46 million for the third quarter of 2025, implying modest sequential growth from 469 million in the prior quarter. North America DAUs are pegged at 98 million, down from 100 million a year ago, while Rest of World DAUs are estimated at 277.31 million, suggesting continued international strength.

Meanwhile, the rapid rollout of Sponsored Snaps likely added near-term strain to ad pricing, as expanded inventory outpaced advertiser demand. Snap’s platform-wide effective cost per thousand impressions (eCPM), which fell 10% year over year in the second quarter, likely remained under pressure. Strict frequency caps, though aimed at preserving user experience, may have further restrained short-term monetization, while tough year-over-year comparisons, including the absence of Olympic-related ad spending, added to the drag.

However, certain stabilising factors may have provided modest support to third-quarter results. Our model estimate for third-quarter 2025 total revenues is pegged at $1.48 billion, implying 5% year-over-year growth. Regionally, North America revenues are pegged at $900.18 million, Europe at $284.20 million, and Rest of World at $309.73 million, indicating broad-based but moderate momentum.

The small and medium business segment likely sustained its growth trajectory, aided by continued adoption of automated tools like Smart Bidding and improved performance attribution. Subscription offerings such as Snapchat+ are likely to have maintained their momentum, providing incremental revenue diversification. Additionally, user expansion in the Rest of World region is expected to have remained healthy, helping offset ongoing softness in North America and partially cushioning the company’s overall topline performance.

What Our Model Says for SNAP

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Snap currently has an Earnings ESP of -20.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat earnings in their upcoming releases:

Fair Issac FICO has an Earnings ESP of +0.46% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fair Issac is set to report its fourth-quarter 2025 results on Nov. 5. The Zacks Consensus Estimate for Fair Issac’s fourth-quarter earnings is pegged at $7.34 per share, down by two cents over the past 30 days, indicating an increase of 12.23% from the year-ago quarter’s reported figure. 

Norwegian Cruise Line NCLH has an Earnings ESP of +0.74% and sports a Zacks Rank #1 at present. 

Norwegian Cruise Line is set to report its third-quarter 2025 results on Nov. 4. The Zacks Consensus Estimate for Norwegian Cruise Line’s third-quarter earnings is pegged at $1.16  per share, down by a penny over the past 30 days, indicating an increase of 17.17% from the year-ago quarter’s reported figure.

Atmos Energy ATO has an Earnings ESP of +4.84% and carries a Zacks Rank #2 at present.

Atmos Energy Line is set to report its fourth-quarter 2025 results on Nov. 5. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 96 cents per share, up by two cents over the past 30 days, indicating an increase of 11.63% from the year-ago quarter’s reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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