Snowflake (NYSE:SNOW) Releases Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Snowflake (NYSE:SNOW) released its earnings results on Wednesday. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.45 by $0.17, FiscalAI reports. Snowflake had a negative net margin of 23.79% and a negative return on equity of 50.50%. The firm had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.48 billion. During the same quarter in the previous year, the firm earned $0.35 earnings per share. The company’s quarterly revenue was up 35.1% compared to the same quarter last year.

Here are the key takeaways from Snowflake’s conference call:

• Product revenue accelerated 37% year over year to $1.49 billion, marking the third consecutive quarter of growth acceleration and record sequential dollar growth. Management attributed the momentum to strength in the core data platform, migrations, and rapidly expanding AI workloads.
• Snowflake raised its FY2027 product revenue guidance to $6.07 billion, or 36% year-over-year growth, and lifted its non-GAAP operating margin outlook from 13.5% to 14.5%. Third-quarter product revenue is expected to grow 37%-38% year over year.
• AI adoption continued to broaden, with CoCo surpassing 9,100 accounts after adding more than 2,000 in the quarter, while CoWork reached 5,800 accounts. Management said AI adopters consume more of Snowflake’s core platform and that AI contributed roughly half of the recent growth acceleration.
• Customer expansion and engagement remained strong, including a 126% net revenue retention rate, 692 net new customers, 48 customers newly exceeding $1 million in trailing 12-month spend, and an 89% year-over-year increase in production use cases.
• Non-GAAP product gross margin guidance was reduced to 74% because fast-growing AI workloads currently carry lower contribution margins. Snowflake said it remains focused on improving economics over time while prioritizing product adoption and overall operating leverage.

Snowflake Price Performance

SNOW stock opened at $307.31 on Thursday. Snowflake has a 52 week low of $118.30 and a 52 week high of $341.95. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 1.18. The company has a fifty day simple moving average of $293.26 and a two-hundred day simple moving average of $218.27. The firm has a market capitalization of $106.51 billion, a P/E ratio of -87.30 and a beta of 1.33.

Wall Street Analyst Weigh In

A number of analysts have issued reports on SNOW shares. Oppenheimer lifted their price target on shares of Snowflake from $295.00 to $400.00 and gave the company an “outperform” rating in a report on Wednesday, August 12th. Sanford C. Bernstein increased their price objective on shares of Snowflake from $195.00 to $250.00 and gave the company a “market perform” rating in a report on Thursday, May 28th. The Goldman Sachs Group raised their price objective on Snowflake from $216.00 to $278.00 and gave the company a “buy” rating in a research report on Thursday, May 28th. Guggenheim reaffirmed a “neutral” rating on shares of Snowflake in a report on Monday, August 24th. Finally, Loop Capital boosted their target price on Snowflake from $290.00 to $320.00 and gave the stock a “buy” rating in a research report on Wednesday, June 3rd. Thirty-four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Snowflake presently has a consensus rating of “Moderate Buy” and an average target price of $338.35.

Insider Buying and Selling

In other Snowflake news, Director Frank Slootman sold 289,685 shares of the business’s stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $274.39, for a total transaction of $79,486,667.15. Following the sale, the director directly owned 28,535 shares of the company’s stock, valued at $7,829,718.65. The trade was a 91.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael L. Speiser sold 50,338 shares of the company’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $245.21, for a total value of $12,343,380.98. Following the sale, the director owned 27,716 shares in the company, valued at approximately $6,796,240.36. This trade represents a 64.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,156,901 shares of company stock worth $321,725,352. Corporate insiders own 4.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Kemnay Advisory Services Inc. bought a new stake in shares of Snowflake in the 4th quarter worth about $28,000. Greenline Wealth Management LLC bought a new stake in Snowflake in the fourth quarter worth about $29,000. JPL Wealth Management LLC bought a new stake in Snowflake in the third quarter worth about $39,000. Strive Financial Group LLC purchased a new position in shares of Snowflake during the fourth quarter valued at approximately $59,000. Finally, Geneos Wealth Management Inc. grew its stake in shares of Snowflake by 29.7% during the first quarter. Geneos Wealth Management Inc. now owns 319 shares of the company’s stock valued at $47,000 after buying an additional 73 shares during the last quarter. Institutional investors own 65.10% of the company’s stock.

Snowflake News Summary

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Quarterly results exceeded expectations: Snowflake reported adjusted EPS of $0.62 versus the $0.45 consensus estimate and revenue of $1.55 billion versus $1.48 billion expected. Revenue rose 35.1% year over year, while product revenue increased 37% to $1.49 billion. Snowflake lifts annual product revenue forecast
• Positive Sentiment: Raised guidance and improving profitability outlook: Management lifted its full-year product-revenue forecast and indicated fiscal 2027 product revenue of approximately $6.07 billion, alongside a 14.5% non-GAAP operating-margin target. The upgraded outlook suggests durable demand for Snowflake’s cloud data platform. Snowflake FY 2027 guidance
• Positive Sentiment: AI adoption is becoming a growth catalyst: Snowflake cited momentum in its AI coding agent CoCo and other offerings such as CoWork and Cortex. Analysts believe AI-driven workloads could continue to accelerate consumption and expand Snowflake’s competitive advantages. Wall Street analysts discuss Snowflake
• Positive Sentiment: Analyst support remains strong: Rosenblatt raised its price target to $345 and maintained a Buy rating. Other analysts see additional upside as Snowflake benefits from the AI trend. Rosenblatt price target
• Neutral Sentiment: Customer adoption provides validation: Sayari selected Snowflake to rebuild its commercial data model for AI, potentially reducing its data-infrastructure costs by more than 50%. However, the company has not quantified the revenue contribution from customers adopting AI. Sayari selects Snowflake
• Negative Sentiment: High valuation and ongoing losses remain concerns: Despite the earnings beat, Snowflake trades at an elevated valuation, has a negative GAAP net margin and return on equity, and faces criticism over stock-based compensation and dilution. High short interest could increase volatility if future growth or AI monetization disappoints.

About Snowflake

Snowflake Inc is a cloud-native data platform company that provides a suite of services for storing, processing and analyzing large volumes of data. Its core offering, often described as the Snowflake Data Cloud, combines data warehousing, data lake and data sharing capabilities in a single managed service delivered across major public cloud providers. The platform is designed to support analytics, data engineering, data science and application workloads with a focus on scalability, concurrency and simplified administration.

Key products and capabilities include a multi-cluster, shared-data architecture that separates compute from storage; continuous data ingestion and streaming; support for structured and semi-structured data formats; tools for data governance, security and compliance; and developer frameworks for building data applications.