Shares of Snap Inc. (NYSE: SNAP) surged 5.9% on Thursday, closing at $6.07, as investors cheered a pair of developments reinforcing the company’s improving financial health and long-term ambitions in augmented reality.
The biggest catalyst was Snap’s confirmation that it has acquired Illumix, an augmented reality startup founded in 2017 by CEO Kirin Sinha. While financial terms of the deal were not disclosed, Snap said it will retain most of Illumix’s staff and integrate its technology platform to accelerate development of Specs, its next-generation smart glasses. Snap formalized Specs as a standalone internal unit — “Specs Inc.” — in January 2026, and the company is expected to share further product updates at the Augmented World Expo in Long Beach, California on June 16.
Adding to the bullish sentiment was a credit rating upgrade from S&P Global Ratings, announced Tuesday, which lifted Snap’s issuer credit rating one notch to BB- from B+, with a positive outlook. S&P cited lower gross leverage, improved free cash flow generation, and Snap’s plan to deliver more than $500 million in annualized cost reductions in the second half of 2026 as key drivers of the decision.
“This upgrade reflects the progress we are making to strengthen Snap’s financial profile,” said CFO Doug Hott.
The twin developments come on the heels of a strong Q1 2026 earnings report, in which Snap posted revenue of $1.53 billion — up 12% year-over-year — and a 116% jump in adjusted EBITDA to $233 million.
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