Snap's Q3 Print Saw Advertising Revenue Growth Slowing as Upper-Funnel Brand Declined, UBS Says

02:56 PM EST, 11/05/2026 (MT Newswires) -- Snap's (SNAP) Q3 print saw advertising revenue growth slowing to 4% year-on-year from 9% in the previous quarter, as upper-funnel brand declined with consumer packaged goods-related spending pressured in the US and Middle East, UBS said in a Thursday note. While the company continues to invest in its advertising platform, improving advertiser outcomes have yet to translate into sustained advertising share gains for Snap, UBS said. Continued pressure in branding further shows the competitive intensity for budgets across the broader digital advertising ecosystem, according to the note. Snap's restructuring and leaner cost base are driving greater operating leverage than anticipated, UBS said. The company is also broadening its revenue opportunity with subscriptions and newer monetization across Chat, Spotlight, and Map, the analysts said. Meanwhile, the firm said the durability, timing as well as magnitude of advertising share gains remain unclear. UBS said it reduced its 2027 and 2028 ad revenue estimates by 2.3% and 3.8%, respectively. UBS lowered its price target to $6 from $7 and maintained its neutral rating. Price: 5.24, Change: -0.68, Percent Change: -11.49