Snowflake Surges on Strong Q4 Earnings and AI-Driven Growth Outlook

Snowflake surges 13% on earnings beat as company expands AI push

Snowflake shares popped more than 13% Thursday after the data analytics software company posted stronger-than-expected fourth-quarter results. The company reported adjusted earnings of 30 cents per share on $987 million in revenue, surpassing the 17 cents per share and $956 million in sales expected by analysts polled by LSEG. That reflected 27% year-over-year revenue growth. "We see tremendous opportunities ahead to support our customers throughout their end-to-end data lifecycle, and we are laser-focused on delivering on this vision," said CEO Sridhar Ramaswamy in a press release. He called Snowflake the "most consequential data and AI company in the world." Like its peers, Snowflake has pushed to offer new artificial intelligence tools to its customers as the race for advanced large language models and AI capabilities accelerates. It announced an expanded partnership with Microsoft Azure to offer access to OpenAI models on Wednesday. Product revenue also topped analyst estimates, growing 28% to $943 million. That came in ahead of the roughly $914 million LSEG estimate. The company also said it anticipates $4.28 billion in product revenue for the year, ahead of a $4.21 billion estimate.

Snowflake Beats Q4 Estimates, Lifts Full-Year Outlook: Analysts See AI Boosting Growth - Snowflake (NYSE:SNOW)

Shares of Snowflake Inc SNOW were climbing in early trading on Thursday, after the company reported upbeat fourth-quarter results. The results came in amid an exciting earnings season. Here are some key analyst takeaways. JPMorgan On Snowflake Analyst Mark Murphy reiterated an Overweight rating, while raising the price target from $185 to $210. Snowflake's fourth-quarter beat was lower in magnitude and less broad-based across bookings and consumption than the previous quarter's upside, Murphy said in the note. He added, however, that the results were strong, with total revenue up 27% year-on-year to $987 million, driven by Product revenue of $943 million, up 28%. Management's fiscal 2026 guidance calls for a growth rate that is around 2 percentage points higher than the guidance provided last year, the analyst stated. "We had also highlighted Snowflake's accelerated pace of product development and potential tailwinds emerging to its 2H26 growth glidepath around AI/ML, toward which we see ongoing progress today, as the company increasingly demonstrates that the data layer is gaining importance as the control point for AI and forecasts a step-up in 2H growth rates," he further wrote. Check out other analyst stock ratings. Needham On Snowflake Analyst Mike Cikos maintained a Buy rating, while raising the price target from $200 to $215. Snowflake guided to Product revenue growth of 21%-22% to a range of $955 million to $960 million for the first quarter and of $4.280 billion for the full year, Cikos said. The full-year guidance implies 24% growth and is significantly above consensus of $4.234 billion, he added. Data Engineering, Snowpark, and AI/ML are expected to drive the acceleration in year-on-year growth during the back half of the fiscal year, the analyst stated. "Several large customers have outpaced their Commitments and are On-Demand - i.e. these contracts are not currently in RPO and would represent a tailwind to Bookings," he further wrote. Rosenblatt Securities On Snowflake Analyst Blair Abernethy reaffirmed a Buy rating and price target of $205. Snowflake's revenue beat and operational efficiency improvements drove margins to around 9% in the fourth quarter, significantly above estimate of 4%, Abernethy said. Snowflake witnessed strong adoption of the new data engineering and AI features, he added. While the company's first-quarter guidance missed expectations, better consumption levels and new product launches are behind management's full-year guidance coming in higher than consensus, the analyst stated. "Importantly, Iceberg tables has turned out to not be a headwind, as the losses from data outflow have been more than offset by increased workloads, and storage remains 11% of total product revenue," he further wrote. SNOW Price Action: Shares of Snowflake had risen by 10% to $182.75 at the time of publication on Thursday. Read More: Snowflake Expands Microsoft, OpenAI Partnership: Will Include Other Prominent Models Like Anthropic's Claude, Meta's Llama, And DeepSeek Image created using artificial intelligence via Midjourney. SNOWSnowflake Inc$183.0410.1%OverviewMarket News and Data brought to you by Benzinga APIs

Snowflake's stock surges on earnings crush and revenue beat - SiliconANGLE

Cloud data warehouse company Snowflake Inc. crushed Wall Street's targets as it delivered its fiscal 2025 fourth-quarter financial results today, and its stock popped in after-hours trading. The company reported earnings before certain costs such as stock compensation of 30 cents per share on sales of $986.6 million, up 27% from a year earlier. The results were much better than expected, with analysts pinning down a profit of just 18 cents per share on lower sales of $957 million. In addition, Snowflake delivered product revenue, which is derived from its customers' consumption of compute, storage and data transfer bandwidth, of $943.3 million, up 28%. That was also well ahead of expectations, with analysts hoping for $914 million in product-based sales. As impressive as the results were, Snowflake was unable to make any progress in terms of profitability. Instead, it went backwards, with its net loss widening to $325.7 million, compared to a loss of $169.9 million in the year-ago period. Snowflake Chief Executive Sridhar Ramaswamy (pictured) told investors that the company put in "another strong quarter" that firmly establishes it as the "most consequential data and AI company in the world". "More than 11,000 customers are already betting their business on our easy-to-use, efficient, and trusted platform," he said. "We see tremendous opportunities ahead to support our customers throughout their end-to-end data lifecycle." Looking to the current quarter, Snowflake is forecasting product revenue of between $955 million and $960 million, which compares poorly with the Street's target of $961 million. However, its full-year forecast is better. Officials said they're shooting for product revenue of $4.28 billion in fiscal 2026, ahead of the Street's guidance of $4.23 billion. All in all, investors seemed pleased enough, and Snowflake's stock jumped 9% in extended trading, adding to a small gain made earlier during the regular trading session. Third Bridge analyst Jordan Berger noted the market's enthusiasm for the stock, but said the company's first-quarter guidance suggests it could be troubled by some near-term headwinds. "While our experts indicate Snowflake remains a leader in the rapidly growing data warehousing market, there is significant uncertainty surrounding the materiality of near-term AI tailwinds," he said. Snowflake has been fighting hard for a slice of the artificial intelligence pie, positioning its cloud data warehouse as an ideal platform for storing and serving up the massive amounts of information consumed by large language models. In recent months, the company has launched a wealth of AI development tools, including various enhancements to Cortex AI, a managed service that makes it easier for organizations to discover, analyze and develop AI applications. Last month saw the release of its first AI agents, which are more sophisticated AI models that can perform tasks autonomously on behalf of users with minimal supervision. That came just weeks after the company claimed a major breakthrough in AI inference, significantly reducing the cost and time it takes for large language models to perform computations. On a conference call with analysts today, Ramaswamy insisted that Snowflake Cortex "is showing significant adoption." That may be so, but there is still plenty of work left to be done. While Snowflake's stock has gained 7% in the year to date, it's down 28% over the last 12 months, due in part to a hefty valuation that has left many investors wondering if the company is overpriced. By traditional valuation metrics, Snowflake's stock is very expensive, trading at 161-times its expected earnings over the next 12 months.

Snowflake Beats Q4 Estimates, Expands Microsoft Partnership To Include OpenAI Models - Snowflake (NYSE:SNOW)

Snowflake, Inc. SNOW reported its fourth-quarter results after Wednesday's closing bell. Here's a look at the key figures from the report. The Details: Snowflake reported quarterly earnings of 30 cents per share, which beat the analyst consensus estimate of 17 cents. Quarterly revenue of $986.77 million beat the analyst consensus estimate of $955.93 million and is an increase over revenue of $774.7 million from the same period last year. Read Next: Tesla Competes Against Chinese Rivals 'With One Hand Tied Behind Its Back': Analyst For the fourth quarter, Snowflake reported: Product revenue of $943.3 million, representing 28% year-over-year growth Net revenue retention rate of 126% 580 customers with trailing 12-month product revenue greater than $1 million 745 Forbes Global 2000 customers Remaining performance obligations of $6.9 billion, representing 33% year-over-year growth Snowflake also announced an expanded partnership with Microsoft Corp. MSFT that integrates Microsoft OpenAI service, providing access to OpenAI's models. "We delivered another strong quarter, with product revenue of $943 million, up a strong 28% year-over-year, and remaining performance obligations totaling $6.9 billion," said Sridhar Ramaswamy, CEO of Snowflake. "Today, Snowflake is the most consequential data and AI company in the world. More than 11,000 customers are already betting their business on our easy-to-use, efficient, and trusted platform. We see tremendous opportunities ahead to support our customers throughout their end-to-end data lifecycle, and we are laser-focused on delivering on this vision," Ramaswamy added. Outlook: Snowflake sees first-quarter revenue in a range of $955 million to $960 million, versus the $1 billion estimate. The company sees fiscal 2026 revenue of $4.28 billion, versus the $4.41 billion estimate. SNOW Price Action: According to data from Benzinga Pro, Snowflake shares are up 9.27% after-hours at $181.60 on Wednesday. Read Next: Mortgage Rates Drop To Lowest Levels Since December, But Housing Market Remains 'Largely Stuck' Image: Shutterstock SNOWSnowflake Inc$181.5010.5%OverviewMSFTMicrosoft Corp$400.040.54%Market News and Data brought to you by Benzinga APIs

Snowflake Gives Strong Sales Outlook With Focus on AI Adoption

Snowflake Inc. projected better-than-expected revenue growth for the fiscal year, sending an optimistic signal about the adoption of its recently launched products for artificial intelligence. The shares jumped in extended trading. Product revenue, which makes up the bulk of Snowflake's business, will increase about 24% to $4.28 billion in the year ending January 2026, the company said Wednesday in a statement. Analysts, on average, estimated $4.23 billion, according to data compiled by Bloomberg.

Snowflake Earnings: Ready for AI Growth

Snowflake was expected to report a big decline in adjusted earnings for the final quarter of fiscal 2025 (ended Jan. 31, 2025). While adjusted EPS still declined by about 14%, that's a far better result than analysts were anticipating. Revenue also came in ahead of expectations as Snowflake maintained a healthy growth rate. Snowflake's net revenue retention rate, which measures how much existing customers are expanding spending, was a solid 126%, down a bit from the fourth quarter of 2024. Snowflake did particularly well with its largest customers. The company ended the quarter with 580 customers spending at least $1 million annually on its products, up 28% year over year. Snowflake's total customer count now tops 11,000. For the first quarter of fiscal 2026, Snowflake expects to grow product revenue by 21% to 22% and produce an adjusted operating margin of 5%. For fiscal 2026, the company sees product revenue rising by 24%. Immediate Market Reaction Shares of Snowflake were up about 10% in early after-hours trading following the fourth-quarter report. While the bottom line did decline, the company beat expectations across the board. While the stock has gained in recent months, it went into this earnings report trading down about 59% from its all-time high, which was set in late 2021. What to Watch Snowflake expects its product revenue growth rate to accelerate as fiscal 2026 goes on. AI will likely be a driver of this growth as customers adopt Snowflake's platform to support AI workloads. The company expects profit margins to improve this year as well, calling for an adjusted operating margin of 8%.

Cloud analytics firm Snowflake forecasts upbeat full-year product revenue

Snowflake forecast fiscal 2026 product revenue above analysts' estimates on Wednesday as the data analytics provider sees rising cloud service growth amid advancements in artificial intelligence, sending its shares up 11% in extended trading. The company also said it has integrated OpenAI's models directly in Snowflake Cortex AI, its fully managed AI service. Snowflake's data cloud has been seeing strong adoption from firms looking to use AI-powered services to organize swathes of data. The company said on Wednesday that Chief Financial Officer Michael Scarpelli will retire. He will remain in his role until a successor is found, and will then move into an advisory position. Snowflake forecast annual 2026 product revenue growth of 24% to $4.28 billion, compared with the average analyst estimate of $4.21 billion, according to data compiled by LSEG. Businesses are pushing their budgets as they migrate towards cloud-based solutions, ramping sales for businesses such as Snowflake. The company also forecast first-quarter product revenue between $955 million and $960 million, above estimates of $949.3 million. Total revenue for the fourth quarter was $986.8 million, beating estimates of $955.9 million.