Snap’s Earnings Beat and AI Partnership Fuel After-Hours Surge

Snap Inc. delivered a robust third-quarter performance, surpassing analyst expectations with adjusted earnings of 10 cents per share against a projected 5 cents. Revenue climbed to $1.51 billion, outpacing the consensus estimate of $1.49 billion. The stock rallied 15% in extended trading as investors cheered both the results and a $400 million AI partnership with Perplexity.

The collaboration, set to integrate AI search into Snapchat by 2026, signals Snap's aggressive push into artificial intelligence. A $500 million share repurchase program further bolstered market sentiment. However, new age restrictions in markets like Australia may pressure user growth in the coming quarter.

Daily active users reached 477 million, while Snapchat+ revenue jumped 54% year-over-year. The company's adjusted EBITDA of $182 million crushed Wall Street's $125 million forecast. Snap's trajectory reflects the tech sector's broader pivot toward AI-driven monetization strategies.