SNAP BEATS Q1 TARGETS, BUT STOCK DROPS ON PERPLEXITY DEAL END

INDUSTRY DESK■ 1 MIN READ

WED, MAY 6, 2026

■ AI-SUMMARIZED FROM 3 SOURCES ▸ TIMELINE

Snap reported first-quarter revenue of $1.53B, up 12% year-over-year and in line with expectations. The company also announced it ended its $400M partnership with AI search engine Perplexity, causing shares to fall over 4% in after-hours trading.

Snap's Q1 earnings met analyst forecasts, with revenue growth steady at 12% compared to the prior year. However, investors reacted negatively to news of the terminated Perplexity agreement. The deal, announced in November, would have integrated Perplexity's AI search capabilities directly into Snapchat. Snap described the ending as "amicable," though the company provided no further details on reasons for the split. The partnership termination suggests a shift in Snap's AI strategy, even as the broader tech industry races to integrate generative AI into consumer products. The stock's after-hours decline indicates market disappointment despite the solid earnings performance. Snap continues navigating competitive pressures in social media while balancing AI investments and profitability.

■ SOURCES

► Techmeme ► TechCrunch ► Techmeme

■ SUMMARY WRITTEN BY AI FROM THE LINKS ABOVE

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SNAP BEATS Q1 TARGETS, BUT STOCK DROPS ON PERPLEXITY DEAL END

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