Snap's stock jumps 10% on earnings beat and strong sales forecast

Evan Speigel, CEO of Snap, speaks with CNBC on June 16th, 2026.CNBCSnap reported better-than-expected revenue and earnings for the second quarter and issued a forecast for the current period that topped analysts' estimates. The stock jumped over 10% in extended trading. Here's how the company did compared with analysts' expectations:Loss per share: Loss of 10 cents. That figure is not comparable to analysts' estimates.Revenue: $1.6 billion vs. $1.54 billion expected, according to LSEGGlobal daily active users: 493 million vs. 487 million expected, according to StreetAccountGlobal average revenue per user (ARPU): $3.25 vs. $3.16 expected, according to StreetAccountRevenue in the second quarter rose 19% from $1.34 billion a year earlier, Snap said in a statement. The company's net loss narrowed to $164 million from $262.6 million, or 16 cents per share, a year ago.Adjusted earnings came in at $250 million, ahead of the $192 million estimate, according to StreetAccount.Snap said third-quarter sales should come in between $1.7 billion to $1.74 billion, topping analyst estimates of $1.7 billion. Adjusted earnings will be in the range between $300 million and $350 million. That figure's midpoint of $325 million trails StreetAccount's projections of $327 million.Snap CEO Evan Spiegel said in an investor letter that the company "saw improving momentum in our advertising business." "After several quarters of improving our ad products and go-to-market approach, we saw better momentum with large advertisers in North America and stronger revenue growth internationally," he said. Spiegel added the company got a boost from spending tied to the World Cup. During its last earnings report in May, Snap said "large advertisers in North America remained a headwind to advertising growth," but that it was "beginning to see encouraging signs that this part of the business is improving."While the number of global daily active users increased 5% from a year earlier, North American DAU declined 7% year-over-year to 92 million and was flat compared to the first quarter.Snap lifted its full-year infrastructure costs by $50 million to between $1.65 billion and $1.7 billion. The company said that figure accounts for "additional investment in the AI and machine learning infrastructure needed to support revenue growth."Snap's other revenue category, which includes the Snapchat+ subscription service, rose 85% year-over-year to $316 million in the second quarter.Snap revealed in June its first augmented reality glasses tailored for the broader public instead of developers. The AR glasses, dubbed Specs, will cost $2,195 with a $200 refundable deposit, and are expected to ship later this year.Wall Street was tough on Snap's fellow online ad companies last week. Reddit reported second-quarter earnings on Thursday that beat on the top and bottom lines, but noted in an investor letter search-referral traffic was "choppy," stroking Wall Street's concerns about user growth and sending shares tumbling.And Meta shares dropped after the social media giant issued a weaker-than-expected sales forecast and reported dwindling free-cash flow due to its hefty spending on AI-related expenditures.WATCH: Meta's stock pullback is justified.