Snap SNAP shares have dropped 41.3% in the year-to-date period, underperforming the Zacks Computer and Technology sector’s appreciation of 18.2%.
The company’s expanding portfolio is expected to boost its prospects. On June 16, 2026, Snap introduced SPECS, a new pair of standalone augmented reality glasses designed to bring digital information, entertainment and assistance into the user’s surroundings without pulling attention away from the real world. Unveiled at Augmented World Expo 2026, the glasses are built using Swiss TR90 polymer and come in two sizes, weighing 132 grams and 136 grams. SPECS feature a 51-degree field of view, support 16 million colors and include electrochromic lenses that can shift from clear to tinted. The device also supports prescription inserts and is designed for extended daily use.
SPECS are powered by two Snapdragon processors, enabling computer vision, hand tracking and responsive augmented reality experiences. The glasses offer up to four hours of mixed-use battery life, while the charging case extends usage to as much as 20 hours. Developers have already created hundreds of Lenses for the platform, and Snap has introduced new tools to support further development. SPECS are available for pre-order at $2,195 with a refundable $200 deposit and are expected to begin shipping this fall in the United States, U.K. and France.
Snap did not announce any acquisitions in the first quarter of 2026. The company concentrated on growing its business through new products, stronger advertising performance, subscription expansion and investments in augmented reality. Management cited Snapchat, Memories Storage, Lens, Sponsored Snaps and advertising products as key contributors to growth during the quarter.
Snap Inc. Price and Consensus
Snap Inc. price-consensus-chart | Snap Inc. Quote
This announcement relates to Snap’s Augmented Reality (“AR”) and Hardware segment, which focuses on its SPECS AR glasses. The product is designed to bring digital information, entertainment and assistance into the real world through wearable glasses. It is part of Snap’s wider AR ecosystem, which includes Snap OS, Lens Studio, computer vision technology and tools for developers. The launch also aligns with Snap’s efforts to expand its AR platform and support new applications built on its system. These developments highlight the company’s focus on combining hardware and software to build practical augmented reality experiences for everyday use.
SNAP’s Earnings Estimate Revision Shows Positive Trend
Snap expects a two-percentage-point acceleration in revenue growth at the midpoint of its second quarter guidance compared with the first quarter, primarily driven by improvements in the North American advertising business.
The Zacks Consensus Estimate for second-quarter 2026 net sales is pegged at $1.53 billion, indicating a year-over-year increase of 13.99%. The consensus mark for the second-quarter earnings is pinned at 7 cents per share, unchanged over the past 30 days, indicating a year-over-year jump of 800%.
The Zacks Consensus Estimate for fiscal 2026 net sales is pegged at $6.7 billion, indicating a year-over-year increase of 12.91%. The consensus mark for the fiscal 2026 earnings is pinned at 60 cents per share, up 1 cent over the past 30 days, indicating a year-over-year jump of 81.82%.
Zacks Rank & Stocks to Consider
Snap currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Alps Electric APELY, Dell Technologies DELL and Teradyne TER, which currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Alps Electric, Dell Technologies and Teradyne are currently pegged at 2.3%, 26.3% and 34.3%, respectively. Shares of Alps Electric, Dell Technologies and Teradyne increased 1.7%, 233.1%, 111.1%, respectively, over the year-to-date period.
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This article originally published on Zacks Investment Research (zacks.com).