Evercore ISI retained its Mixed grade on Snap, lowering its 12-month price target from $13 to $9 in response to a cautious outlook on user growth and monetization. In contrast, B. Riley upgraded its rating on Snap to Buy following the company’s Q4 earnings beat, signaling confidence in management’s strategic pivot toward profitability. Currently, the consensus among 32 analysts is a Reduce recommendation, with five out of 32 assigning a Sell rating, 25 at Hold and two at Buy, and an average price target near $9.83.

In the fourth quarter, Snap reported adjusted earnings per share of $0.03, topping the consensus forecast for a $0.02 loss. Revenue climbed 10.2% year-over-year to $1.72 billion, surpassing the Zacks Consensus Estimate by 1%. Adjusted EBITDA rose 30% to $358 million, and net income expanded nearly 400% to $45 million. This performance underscores the effectiveness of the company’s focus on higher-margin offerings, including its subscription products, which contributed to a 62% year-over-year gain in Other Revenue to $232 million.

North America, which accounts for approximately 60% of total revenues, delivered 6% year-over-year growth to $1.03 billion in Q4, driven by improved ad targeting and the adoption of smart campaign solutions. European revenues, representing around 20% of the mix, surged 19% to $341 million on the back of dynamic product ads and expanded advertiser adoption. Asia Pacific revenues also contributed to topline gains, supported by a 5% increase in average revenue per user to $3.62.

To reinforce its commitment to capital efficiency, Snap’s board authorized a $500 million share repurchase program, to be executed opportunistically over the next 12 months. With $2.9 billion in cash, cash equivalents and marketable securities on the balance sheet as of December 31, 2025, management views the buyback as a means to offset dilution from employee awards and support per-share metrics while pursuing investments in augmented reality and product innovation.