Snowflake (SNOW) AI Stock Analysis

• Market Cap: $89.69B
• Dividend Yield: N/A
• Average Volume (3M): 4.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 28.37%
• EPS Growth: -35.49%
• Country: US
• Employees: 7,834
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.35
• Shares Outstanding: 338,800,000
• 10 Day Avg. Volume: 4,538,681
• 30 Day Avg. Volume: 4,462,234
• PEG Ratio: -0.91
• Price to Book (P/B): 20.13
• Price to Sales (P/S): 16.65
• P/FCF Ratio: 66.11
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 17.99
• Enterprise Value/Gross Profit: 27.01
• Enterprise Value/Ebitda: -63.26
• 1Y Price Target: $270.94
• Price Target Upside: 3.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 34
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $291.00 ▲(10.71% Upside)

Snowflake's overall stock score is driven by strong technical momentum and positive earnings call insights, highlighting robust revenue growth and strategic positioning in AI. However, the score is tempered by valuation concerns due to lack of profitability and cash flow challenges. Investors should be mindful of potential volatility given the high RSI and ongoing operational cost pressures.

Positive Factors

Revenue Growth

Snowflake's robust revenue growth indicates strong demand for its services, enhancing its market position and supporting long-term expansion.

AI and Partnership Expansion

The partnership with Palantir enhances Snowflake's AI capabilities, expanding its market reach and strengthening its competitive edge in data analytics.

Customer and Partner Growth

The increase in high-profile customers and partnerships indicates strong market acceptance and potential for sustained revenue growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues could limit Snowflake's ability to reinvest in growth, affecting long-term financial health and operational flexibility.

Cash Flow Efficiency

Declining cash flow growth raises concerns about Snowflake's ability to generate cash, impacting its capacity to fund operations and investments.

Operational and Hiring Costs

Increased hiring costs could pressure margins, potentially affecting profitability and operational efficiency in the medium term.

Snowflake Business Overview & Revenue Model

Company Description

Snowflake Inc. provides a cloud-based data platform in the United States and internationally. The company's platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data. Its platform is used by various organizations of sizes in a range of industries. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.

How the Company Makes Money

Snowflake generates revenue primarily through a consumption-based pricing model, where customers pay based on the amount of data they store and the compute resources they use for processing. This includes charges for data storage, data processing (compute usage), and data transfer. Additionally, Snowflake offers various subscription tiers that provide access to its services, with customers often entering multi-year contracts. Key revenue streams include enterprise accounts and partnerships with major cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, which enhance its distribution and customer reach. The company's ability to scale its services and cater to diverse industries further contributes to its revenue growth.

Snowflake Financial Statement Overview

Summary

Snowflake demonstrates strong revenue growth and a solid balance sheet, but faces challenges in achieving profitability and cash flow efficiency. The company needs to focus on improving operational margins and cash generation to enhance its financial health.

Income Statement

Snowflake shows strong revenue growth with a 7.19% increase in TTM, indicating robust demand for its services. However, profitability remains a challenge, with negative net profit and EBIT margins. The gross profit margin is healthy at 66.6%, but the company needs to improve operational efficiency to achieve profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 1.10 in TTM. However, the negative return on equity highlights ongoing profitability challenges. The equity ratio is strong, indicating a solid capital structure.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 87% in TTM, raising concerns about cash generation. The operating cash flow to net income ratio is low, suggesting limited cash conversion efficiency. However, the free cash flow to net income ratio is relatively strong, indicating some ability to generate cash despite losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.12B	3.63B	2.81B	2.07B	1.22B	592.05M
Gross Profit	2.74B	2.41B	1.91B	1.35B	760.89M	349.46M
EBITDA	-1.17B	-1.10B	-729.32M	-752.46M	-693.54M	-534.11M
Net Income	-1.38B	-1.29B	-836.10M	-796.71M	-679.95M	-539.10M
Balance Sheet
Total Assets	8.20B	9.03B	8.22B	7.72B	6.65B	5.92B
Cash, Cash Equivalents and Short-Term Investments	3.59B	4.64B	3.85B	4.01B	3.85B	3.91B
Total Debt	2.69B	2.69B	287.98M	251.66M	206.30M	204.54M
Total Liabilities	5.82B	6.03B	3.03B	2.25B	1.60B	985.27M
Stockholders Equity	2.37B	3.00B	5.18B	5.46B	5.05B	4.94B
Cash Flow
Free Cash Flow	751.33M	913.49M	778.90M	496.50M	81.19M	-85.75M
Operating Cash Flow	837.70M	959.76M	848.12M	545.64M	110.18M	-45.42M
Investing Cash Flow	-397.49M	190.65M	832.26M	-597.88M	-20.80M	-4.04B
Financing Cash Flow	199.43M	-226.52M	-854.10M	-92.62M	178.20M	4.78B

Snowflake Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 262.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNOW, the sentiment is Positive. The current price of 262.86 is above the 20-day moving average (MA) of 256.96, above the 50-day MA of 240.47, and above the 200-day MA of 199.40, indicating a bullish trend. The MACD of 8.75 indicates Positive momentum. The RSI at 58.55 is Neutral, neither overbought nor oversold. The STOCH value of 31.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNOW.

Snowflake Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DT	77 Outperform	$13.89B	28.33	20.57%	―	18.50%	207.45%
DDOG	72 Outperform	$66.55B	647.83	3.52%	―	26.63%	-46.13%
WDAY	72 Outperform	$59.94B	104.13	6.66%	―	14.21%	-62.56%
SNOW	69 Neutral	$89.69B	―	-42.45%	―	28.37%	-35.49%
TEAM	67 Neutral	$42.64B	―	-15.35%	―	19.51%	53.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MSTR	57 Neutral	$73.28B	11.03	25.59%	0.08%	1.65%	―

Snowflake Corporate Events

Snowflake Executive’s Unauthorized Interview Sparks Caution

On October 26, 2025, an unauthorized Instagram interview with a Snowflake Inc. executive led to statements about the company’s future results, which investors are advised not to rely on. Snowflake reaffirms its previously issued revenue guidance for Q3 and the full fiscal year 2026, maintaining its guidance philosophy and standard practices for financial result releases.

The most recent analyst rating on (SNOW) stock is a Buy with a $255.00 price target. To see the full list of analyst forecasts on Snowflake stock, see the SNOW Stock Forecast page.

Snowflake Appoints New CFO Amid Strategic Shift

On September 3, 2025, Snowflake announced the appointment of Brian Robins as the new Chief Financial Officer, effective September 22, 2025. Robins, who has extensive experience in financial leadership roles at technology companies like GitLab, Sisense, and Cylance, will succeed Mike Scarpelli, who is retiring but will remain temporarily to ensure a smooth transition. This leadership change is expected to support Snowflake’s growth and strategic direction in the AI and data industry, as Robins will be responsible for shaping the company’s financial strategies and leading its global finance organization.

The most recent analyst rating on (SNOW) stock is a Buy with a $275.00 price target. To see the full list of analyst forecasts on Snowflake stock, see the SNOW Stock Forecast page.

Snowflake’s Earnings Call Highlights Strong Growth and AI Focus

Snowflake, Inc. recently held its earnings call, revealing a positive outlook driven by strong product revenue growth and increased AI adoption. The company emphasized its strategic partnerships and expanding customer base, while acknowledging some challenges in Europe and rising hiring costs. Overall, the sentiment was optimistic, with a focus on future growth and innovation.

Snowflake, Inc. Reports Strong Q2 Fiscal 2026 Growth

Snowflake, Inc. is a leading company in the AI Data Cloud sector, providing a platform that enables enterprises to harness data and artificial intelligence for innovation and value creation.