Snap Inc. (NYSE: SNAP) reported its third-quarter fiscal 2026 results after Wednesday's closing bell, and the market's reaction was swift: the stock dropped 10.47% to $5.30 in extended trading, according to market data.

The Numbers

Snap posted quarterly earnings of three cents per share, which beat the consensus estimate of zero cents. That's a win, technically. But revenue of $1.72 billion missed the Street's consensus estimate of $1.73 billion. So the company made more money per share than expected while bringing in slightly less than hoped.

Daily Active Users (DAU) were 495 million, according to CNBC. But here's the twist: Snap said it will stop reporting DAUs and only report Monthly Active Users (MAU) in the future. Make of that what you will.

What Spiegel Said

CEO Evan Spiegel framed the quarter around profitability and AI. "In Q3, we generated positive net income as revenue grew 14% year-over-year to $1.72 billion, reflecting the progress we are making to build a more profitable business," he said.

"AI is becoming a significant advantage for our teams and advertising platform, and we continue to strengthen our business while investing in our long-term vision for augmented reality with the launch of SPECS," Spiegel added.

The company said it will address its fourth-quarter outlook on the earnings call to be held at 5 p.m. ET.