Snowflake (SNOW) AI Stock Analysis

• Market Cap: $74.01B
• Dividend Yield: N/A
• Average Volume (3M): 5.32M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 28.48%
• EPS Growth: -19.12%
• Country: US
• Employees: 7,834
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.35
• Shares Outstanding: 342,200,000
• 10 Day Avg. Volume: 9,043,177
• 30 Day Avg. Volume: 5,317,395
• 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: 1.25
• Enterprise Value/Revenue: 21.13
• Enterprise Value/Gross Profit: 31.51
• Enterprise Value/Ebitda: -75.16
• 1Y Price Target: $286.42
• Price Target Upside: 32.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 34
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $239.00 ▲(10.50% Upside)

Snowflake's overall stock score is driven by strong earnings call performance and strategic advancements in AI and partnerships, which bolster future growth prospects. However, ongoing challenges with profitability, leverage, and valuation metrics weigh on the score. Technical analysis suggests potential short-term bearish momentum, but the stock may rebound given its oversold RSI.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Snowflake's services and suggests a solid market position, supporting long-term business expansion.

Strategic Partnerships

The partnership with AWS enhances Snowflake's distribution and customer reach, leveraging AWS's vast infrastructure to accelerate growth and innovation.

AI Adoption

Early achievement of AI revenue targets reflects strong adoption of Snowflake's AI capabilities, positioning the company as a leader in data-driven AI solutions.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder long-term financial stability and limit reinvestment opportunities, affecting growth potential.

Cash Flow Concerns

Declining free cash flow growth raises concerns about Snowflake's ability to generate cash, which is crucial for sustaining operations and funding future investments.

Operating Margin Pressure

Lower operating margin guidance suggests potential cost pressures or increased investment needs, which could impact profitability and financial health.

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 for the amount of data storage and processing they utilize on the Snowflake platform. Key revenue streams include charges for data storage, compute resources used for processing queries, and data transfer fees. Snowflake also offers subscription services that provide customers with access to additional features and capabilities. Partnerships with leading cloud service providers, such as AWS, Azure, and GCP, enhance its market presence and allow it to tap into their customer bases. Additionally, integrations with various data tools and platforms help drive usage and customer retention, contributing to Snowflake's overall growth and revenue generation.

Snowflake Financial Statement Overview

Summary

Snowflake demonstrates strong revenue growth and gross profit margins, but continues to face challenges with profitability and leverage. The company is making progress in cash flow management, yet needs to address operational inefficiencies to improve its financial health.

Income Statement

Snowflake's income statement shows a strong gross profit margin of 67.07% TTM, indicating efficient cost management. However, the company is still operating at a net loss with a net profit margin of -30.76% TTM. The revenue growth rate of 6.58% TTM is positive but has slowed compared to previous years. The negative EBIT and EBITDA margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.22 TTM, suggesting increased leverage. Return on equity is negative at -51.54% TTM, indicating inefficiencies in generating returns for shareholders. However, the equity ratio remains stable, showing a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a modest free cash flow growth rate of 3.37% TTM. The operating cash flow to net income ratio of 0.26 TTM suggests that cash generation is not yet sufficient to cover net losses. However, the free cash flow to net income ratio of 0.89 TTM indicates some improvement in cash flow management.

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

Snowflake Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 216.29
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 216.29 is below the 20-day moving average (MA) of 234.38, below the 50-day MA of 248.07, and above the 200-day MA of 207.91, indicating a neutral trend. The MACD of -9.52 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 31.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNOW.

Snowflake Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DT	77 Outperform	$13.24B	26.50	20.57%	―	18.50%	207.45%
MDB	75 Outperform	$33.56B	-482.09	-3.23%	―	20.93%	68.47%
WDAY	73 Outperform	$56.81B	91.56	7.34%	―	13.35%	-60.76%
DDOG	69 Neutral	$49.11B	463.11	3.52%	―	26.63%	-46.13%
TEAM	66 Neutral	$42.78B	-234.38	-15.35%	―	19.51%	53.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SNOW	54 Neutral	$74.01B	-54.84	-53.32%	―	28.48%	-19.12%

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.