Shares of Snowflake (NYSE:SNOW) surged in after-hours trading after the data warehousing giant’s guidance beat expectations. The company anticipates its product revenue to come in at $3.3 billion in Fiscal Year 2025 compared to the $3.26 billion expected by analysts. For the upcoming quarter, Snowflake expects its product revenue to range between $805 million and $810 million, which is also above the $787.5 million estimate.
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Nevertheless, Snowflake reported first-quarter results that were mixed. The company saw a 32.9% increase in revenue to $828.71 million, beating estimates of $785.9 million. On the other hand, adjusted earnings of $0.14 per share missed analysts’ consensus estimate of $0.18 per share. Still, its remaining performance obligations grew by 46% to $5 billion, with net revenue retention coming in at 128%.
The revenue growth was primarily driven by Snowflake’s AI products, which are generating strong customer demand, according to CEO Sridhar Ramaswamy.
Is SNOW a Good Buy Right Now?
After a 6% decline in SNOW shares over the past year, analysts have a Moderate Buy consensus rating on SNOW stock based on 27 Buys, 10 Holds, and two Sells with an average price target of $208 per share. However, it’s worth noting that estimates will likely change following today’s earnings report.
Is It Wise to Allocate $1,000 Toward SNOW Stock Right Now?
Before you hurry to invest in SNOW, think about the following:
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