Snowflake, Inc. (SNOW)
NYSE:SNOW
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Snowflake
(NYSE:SNOW)
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Rating:55Neutral
Price Target:
$124.00
▲(2.39% Upside)
Action:ReiteratedDate:04/11/26
The score is held back primarily by weak technicals (sharp downtrend across moving averages with negative MACD) and mixed fundamentals (persistent losses and rising leverage despite strong free cash flow). Offsetting factors include constructive earnings-call guidance and operating momentum (RPO acceleration, solid retention, and AI-driven product traction), but valuation remains constrained by unprofitability.
Positive Factors
Free Cash Flow Strength
Consistent and expanding free cash flow (~$1.12B in 2026) provides durable funding for R&D, M&A (Observe), and share repurchases without relying on equity issuance. Strong cash conversion cushions the business against accounting losses and increases optionality for strategic investments over the next 2–6 months.
Negative Factors
Rising Leverage
Leverage has increased materially, reducing financial flexibility while net losses persist. Higher debt-to-equity (~1.36) raises refinancing and covenant risk if growth or cash flows weaken, constraining the company's ability to invest opportunistically or absorb integration costs over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistent and expanding free cash flow (~$1.12B in 2026) provides durable funding for R&D, M&A (Observe), and share repurchases without relying on equity issuance. Strong cash conversion cushions the business against accounting losses and increases optionality for strategic investments over the next 2–6 months.
Read all positive factors
Snowflake (SNOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.87B
Dividend YieldN/A
Average Volume (3M)5.71M
Price to Earnings (P/E)―
Beta (1Y)1.17
Revenue Growth28.48%
EPS Growth-19.12%
CountryUS
Employees7,834
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.32
Shares Outstanding345,700,000
10 Day Avg. Volume7,728,265
30 Day Avg. Volume5,710,566
Financial Highlights & Ratios
PEG Ratio-20.95
Price to Book (P/B)33.80
Price to Sales (P/S)13.88
P/FCF Ratio58.05
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue8.92
Enterprise Value/Gross Profit13.28
Enterprise Value/Ebitda-33.28
Forecast
1Y Price Target
$235.00Price Target Upside94.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering34
EPS Forecast (FY)1.81
Revenue Forecast (FY)$5.92B
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...
How the Company Makes Money
Snowflake primarily makes money by selling access to its cloud data platform on a usage-based model. The company’s revenue is driven mainly by product revenue, which is typically tied to customers’ consumption of compute and other platform service...
Snowflake Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySnowflake Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The call presented multiple strong operating and financial highlights: robust revenue growth (30% YoY in Q4), accelerated RPO (+42% YoY), healthy net revenue retention (125%), material customer additions and expansion (notably more customers spending >$1M and >$10M TTM), rapid adoption of AI products (Snowflake Intelligence, Cortex Code), margin expansion in FY'26 and strong free cash flow. Guidance for FY'27 targets continued durable growth (~27% YoY) and further margin improvement (12.5% non-GAAP operating margin), while acknowledging manageable headwinds from the Observe acquisition, slightly lower gross margin guidance (~75%), and risks around AI consumption unpredictability and customer 'sticker shock.' Overall, the positives — including product traction, large deal momentum, and margin discipline — substantially outweigh the manageable near-term challenges.Positive Updates
Strong Q4 Product Revenue Growth
Product revenue in Q4 grew 30% year-over-year to $1.23 billion, driven by stable core growth and a step-up from AI workloads.
Negative Updates
Guidance Shows Moderate Deceleration
Q1 FY'27 product revenue guidance of $1.262–$1.267 billion and FY'27 product revenue guidance of ~$5.66 billion imply ~27% year-over-year growth — down from 30% reported in Q4 — signaling a modest deceleration in growth rate guided for next year.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Q4 Product Revenue Growth
Product revenue in Q4 grew 30% year-over-year to $1.23 billion, driven by stable core growth and a step-up from AI workloads.
Read all positive updates
Company Guidance
Snowflake guided Q1 FY'27 product revenue of $1.262–$1.267 billion (about 27% YoY) and full‑year FY'27 product revenue of ~$5.66 billion (about 27% YoY), saying the Observe acquisition should add roughly 1 percentage point of product revenue growth; they expect FY'27 non‑GAAP product gross margin of 75%, Q1 non‑GAAP operating margin of 9% and FY'27 non‑GAAP operating margin of 12.5%, and they forecast FY'27 non‑GAAP adjusted free cash flow margin of 23% (including an approximate 150 basis‑point headwind from Observe); hiring will be weighted to Q1 to absorb ~178 Observe employees, bookings are expected to remain fourth‑quarter weighted, and free‑cash‑flow seasonality is expected to mirror FY'26 (with the majority of cash collected in Q4).Snowflake Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
49
Neutral
Cash Flow
74
Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.68B | 3.63B | 2.81B | 2.07B | 1.22B |
| Gross Profit | 3.15B | 2.41B | 1.91B | 1.35B | 760.89M |
| EBITDA | -1.08B | -1.10B | -729.32M | -752.46M | -693.54M |
| Net Income | -1.33B | -1.29B | -836.10M | -796.71M | -679.95M |
Balance Sheet | |||||
| Total Assets | 9.13B | 9.03B | 8.22B | 7.72B | 6.65B |
| Cash, Cash Equivalents and Short-Term Investments | 4.03B | 4.64B | 3.85B | 4.01B | 3.85B |
| Total Debt | 2.74B | 2.69B | 287.98M | 251.66M | 206.30M |
| Total Liabilities | 7.21B | 6.03B | 3.03B | 2.25B | 1.60B |
| Stockholders Equity | 1.92B | 3.00B | 5.18B | 5.46B | 5.05B |
Cash Flow | |||||
| Free Cash Flow | 1.12B | 913.49M | 778.90M | 496.50M | 81.19M |
| Operating Cash Flow | 1.22B | 959.76M | 848.12M | 545.64M | 110.18M |
| Investing Cash Flow | 312.24M | 190.65M | 832.26M | -597.88M | -20.80M |
| Financing Cash Flow | -1.39B | -226.52M | -854.10M | -92.62M | 178.20M |
Snowflake Technical Analysis
Negative
121.11
Price Trends
168.35
Negative
197.86
Negative
212.76
Negative
Market Momentum
-10.69
Positive
21.17
Positive
11.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNOW, the sentiment is Negative. The current price of 121.11 is below the 20-day moving average (MA) of 158.35, below the 50-day MA of 168.35, and below the 200-day MA of 212.76, indicating a bearish trend. The MACD of -10.69 indicates Positive momentum. The RSI at 21.17 is Positive, neither overbought nor oversold. The STOCH value of 11.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNOW.
Snowflake Risk Analysis
Snowflake disclosed 54 risk factors in its most recent earnings report. Snowflake reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Snowflake Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $9.65B | 81.46 | 6.81% | ― | 18.50% | 207.45% | |
70 Outperform | $18.16B | -424.02 | -2.41% | ― | 20.93% | 68.47% | |
69 Neutral | $28.91B | 66.22 | 7.97% | ― | 13.35% | -60.76% | |
65 Neutral | $37.17B | 438.37 | 3.24% | ― | 26.63% | -46.13% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $15.13B | -250.38 | -13.32% | ― | 19.51% | 53.35% | |
55 Neutral | $41.87B | -48.84 | -60.27% | ― | 28.48% | -19.12% |
* Technology Sector Average
SNOW
Snowflake
121.11
-23.44
-16.22%
WDAY
Workday
112.50
-119.84
-51.58%
TEAM
Atlassian
57.15
-143.84
-71.57%
MDB
MongoDB
225.95
67.91
42.97%
DT
Dynatrace
32.36
-11.01
-25.39%
DDOG
Datadog
105.37
13.49
14.68%
Snowflake Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Snowflake Names New CRO, Reaffirms Fiscal 2027 Guidance
Positive
Mar 31, 2026
On March 31, 2026, Snowflake appointed long-time executive Jonathan “JB” Beaulier as Chief Revenue Officer, succeeding Mike Gannon, who is leaving for personal reasons. Beaulier, who has led U.S. Majors Sales since August 2024 and prev...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Snowflake director resigns following Observe acquisition completion
Neutral
Feb 2, 2026
On January 28, 2026, Snowflake Inc. announced that Jeremy Burton, a Class III director and member of the Board’s Cybersecurity Committee, had tendered his resignation from the Board and all its committees, effective January 30, 2026. Burton&...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.