Markets
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Claire Yubin Oh

Snap rises on surprise profit beat, despite falling global daily active users

Snap shares are up 7% in premarket trading on Thursday after the owner of the popular social media app reported better-than-expected sales and earnings in its Q4 results, released Wednesday evening.

For the quarter ended December 31, 2025, the company reported:

  • Revenue of $1.72 billion, marginally above analyst estimates of $1.702 billion (consensus compiled by Bloomberg).

  • Adjusted earnings per share of $0.183, topping expectations of $0.153 by 20%.

“Our Q4 results began to reflect the impact of our strategic pivot toward profitable growth, translating into revenue diversification and meaningful margin expansion,” CEO Evan Spiegel said in a press release.

Investors seem to be pleased about the increased focus on the bottom line, with top-line guidance actually coming in a little softer: Snap expects Q1 revenue to be between $1.5 billion and $1.53 billion, marginally below consensus forecasts for $1.526 billion at its midpoint.

However, the company also noted that the guidance excludes potential revenue from any deal with Perplexity AI’s answer engine in its app — a tie-up that would offer Snap $400 million a year in cash and equity — as the two parties are “yet to mutually agree on a path to a broader roll out.”

The bad news was that the company’s user base shrunk, with global daily active users, long a key metric for the social media company, dropping to 474 million from 477 million last quarter, lower than the previous quarter and analysts’ projections. In a letter to investors, the company addressed the slowdown as the result of a broader strategy change announced last year to focus on “profitable growth” that included plans to “substantially reduce our community growth marketing investments.” Snap also detailed its plans to invest in higher-margin ad products, like Sponsored Snaps, and double down on its subscription business to boost its bottom line.

Snap has also been expanding into wearables and augmented reality in recent years, including creating a stand-alone subsidiary dedicated for its Specs AR glasses in January.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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