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Snowflake (SNOW)
NYSE:SNOW
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Snowflake
(NYSE:SNOW)
Rating:64Neutral
Price Target:
$205.00
▲(2.97% Upside)
Positive Factors
Leadership and Strategy
Under new CEO Sridhar Ramaswamy, Snowflake has become a better executing and faster innovating company.
Market Opportunity
Snowflake has found its identity and has settled on a strategy on how it will successfully capitalize on the $300+ billion market opportunity.
Product Innovation
Snowflake distinguished itself from the crowd, introducing an avalanche of new innovations at Snowflake Summit.
Negative Factors
AI Revenue Disclosure
Databricks disclosed nearly $300M in AI ARR, whereas Snowflake has not yet provided an official AI revenue or ARR disclosure.
Financial Performance
Databricks is nearly breakeven with its cash flow, while Snowflake's free cash flow margins are lower.
Revenue Growth
Databricks' revenue growth rate is significantly higher than Snowflake's projected growth rate.
Snowflake (SNOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.42B
Dividend YieldN/A
Average Volume (3M)3.80M
Price to Earnings (P/E)―
Beta (1Y)1.41
Revenue Growth27.50%
EPS Growth-49.96%
CountryUS
Employees7,834
SectorTechnology
Sector Strength89
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.24
Shares Outstanding333,658,000
10 Day Avg. Volume4,362,271
30 Day Avg. Volume3,798,987
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.78
Enterprise Value/Revenue13.50
Enterprise Value/Gross Profit20.34
Enterprise Value/Ebitda-41.82
Forecast
1Y Price Target
$232.50Price Target Upside16.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering40
Snowflake Business Overview & Revenue Model
Company DescriptionSnowflake Inc. is a cloud-based data-warehousing company that provides a platform for data storage, processing, and analytics. It operates primarily in the technology sector, offering a comprehensive solution that enables organizations to consolidate their data into a single source of truth. Snowflake's platform is designed to scale seamlessly and support a wide range of workloads, from data engineering and data lakes to data science and machine learning, making it a versatile tool for businesses looking to harness the power of their data.
How the Company Makes MoneySnowflake makes money primarily through a consumption-based revenue model, where customers pay for the amount of data storage and computing resources they use on the platform. This model is flexible, allowing customers to scale their usage according to their needs, which can result in increased spending as data requirements grow. Additionally, Snowflake generates revenue through its partnerships with major cloud service providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform, leveraging these platforms' infrastructure to deliver its services. These collaborations not only enhance Snowflake's service offerings but also expand its market reach. Furthermore, Snowflake offers a range of premium features and services, such as data sharing capabilities and advanced security options, which provide additional revenue streams.
Snowflake Key Performance Indicators (KPIs)
Any
Total Customers
Shows the total number of customers, reflecting market penetration and the company's ability to attract and retain clients.
Shows the total number of customers, reflecting market penetration and the company's ability to attract and retain clients.
Data provided by:
Main Street Data
Main Street DataSnowflake Earnings Call Summary
Earnings Call Date:May 21, 2025
(Q1-2026)
| % Change Since: 11.14%|
Next Earnings Date:Aug 27, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong start to the fiscal year with significant revenue growth, high customer retention, and strategic expansions. The company demonstrated robust product and AI innovation while maintaining operational efficiency. Despite a one-time increase in capital expenditure and a slight challenge in maintaining peak net revenue retention, the overall outlook remains positive with strong new customer acquisition and market expansion.Q1-2026 Updates
Positive Updates
Strong Product Revenue Growth
Product revenue for Q1 was $997 million, up 26% year-over-year, with a stable growth rate quarter-over-quarter, showing no deceleration.
High Net Revenue Retention
Net revenue retention was a very healthy 124%, indicating strong customer loyalty and expansion.
Significant Customer Wins
Two large customers signed $100 million-plus contracts in Q1, contributing to strong bookings.
Operational Efficiency
Non-GAAP operating margin was 9%, up 442 basis points year-over-year, and non-GAAP adjusted free cash flow margin was 20%.
AI and Product Innovations
Launched over 125 product capabilities this quarter, a 100% increase over Q1 of last year, with strong adoption of AI and machine learning products like Cortex AI.
Expansion into New Markets
Launched Snowflake Public Sector Inc. to deliver data and AI solutions to national security community, including the U.S. Department of Defense.
Strong New Customer Acquisition
Added 451 net new customers in Q1, growing 19% year-over-year.
Negative Updates
One-time High CapEx
Capital expenditure increased significantly due to new headquarters and office buildouts, which are not expected to be repeated in the next couple of years.
Challenges in Maintaining High NER
Net revenue retention at 124% was lower than historical peaks due to large customer growth not matching the previous year's performance.
Company Guidance
In the Snowflake Inc. Q1 Fiscal Year 2026 earnings call, the company highlighted its strong financial performance and optimistic outlook. Product revenue for the quarter reached $997 million, marking a 26% year-over-year increase, with a noted growth of 28% when adjusting for the leap year. The company's remaining performance obligations stood at $6.7 billion, reflecting a 34% year-over-year growth, and it maintained a healthy net revenue retention rate of 124%. Snowflake's guidance for Q2 anticipates product revenue between $1.035 billion and $1.04 billion, equating to 25% year-over-year growth. For the full fiscal year 2026, the company expects product revenue to hit $4.325 billion, also representing a 25% year-over-year increase. The company is targeting a non-GAAP operating margin of 8% for both Q2 and the full fiscal year, alongside a non-GAAP adjusted free cash flow margin of 25%. This robust performance is underpinned by the growing adoption of Snowflake's AI and data cloud solutions, with significant contributions from new product offerings like Snowpark and Dynamic Tables.Snowflake Financial Statement Overview
Summary
Snowflake shows strong revenue growth and effective cash flow management, crucial for its expansion strategy. However, challenges with profitability and leverage need attention to sustain growth.Income Statement
Snowflake demonstrates impressive revenue growth with a 36% increase from 2024 to 2025 TTM, showcasing strong market demand and expansion capabilities. However, the company faces challenges with profitability, as evidenced by negative EBIT and net profit margins, indicating that operational expenses and cost structures need optimization to achieve profitability.75
Positive
Balance Sheet
The balance sheet shows a solid equity base with an equity ratio of 29.5% in TTM, indicating a healthy capital structure. However, a high debt-to-equity ratio of 1.12 suggests potential leverage concerns, which could pose risks if revenue growth slows down. Continuous monitoring of debt levels is crucial to maintain financial stability.68
Positive
Cash Flow
Snowflake has a strong cash flow position, with positive operating and free cash flows indicating effective cash generation. The company achieved a free cash flow growth rate of -17.7% from 2024 to 2025 TTM, showing volatility but overall robustness in cash management. The operating cash flow to net income ratio of -0.6 highlights the ability to generate cash despite negative net income.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.84B | 3.63B | 2.81B | 2.07B | 1.22B | 592.05M |
| Gross Profit | 2.55B | 2.41B | 1.91B | 1.35B | 760.89M | 349.46M |
| EBITDA | -1.24B | -1.10B | -729.32M | -752.46M | -693.54M | -534.11M |
| Net Income | -1.40B | -1.29B | -836.10M | -796.71M | -679.95M | -539.10M |
Balance Sheet | ||||||
| Total Assets | 8.16B | 9.03B | 8.22B | 7.72B | 6.65B | 5.92B |
| Cash, Cash Equivalents and Short-Term Investments | 3.91B | 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 | 5.74B | 6.03B | 3.03B | 2.25B | 1.60B | 985.27M |
| Stockholders Equity | 2.41B | 3.00B | 5.18B | 5.46B | 5.05B | 4.94B |
Cash Flow | ||||||
| Free Cash Flow | 757.92M | 913.49M | 778.90M | 496.50M | 81.19M | -85.75M |
| Operating Cash Flow | 832.67M | 959.76M | 848.12M | 545.64M | 110.18M | -45.42M |
| Investing Cash Flow | 285.84M | 190.65M | 832.26M | -597.88M | -20.80M | -4.04B |
| Financing Cash Flow | -157.08M | -226.52M | -854.10M | -92.62M | 178.20M | 4.78B |
Snowflake Technical Analysis
Neutral
199.08
Price Trends
212.07
Negative
189.99
Positive
176.20
Positive
Market Momentum
-4.76
Positive
41.81
Neutral
34.34
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 199.08 is below the 20-day moving average (MA) of 207.12, below the 50-day MA of 212.07, and above the 200-day MA of 176.20, indicating a neutral trend. The MACD of -4.76 indicates Positive momentum. The RSI at 41.81 is Neutral, neither overbought nor oversold. The STOCH value of 34.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $61.34B | 61.44 | 42.36% | ― | 12.89% | 1.23% | |
73 Outperform | $60.37B | 124.84 | 5.70% | ― | 15.38% | -67.58% | |
69 Neutral | $44.38B | 367.67 | 4.45% | ― | 26.00% | -25.64% | |
67 Neutral | $43.96B | ― | -21.58% | ― | 19.66% | 15.17% | |
64 Neutral | $66.42B | ― | -40.16% | ― | 27.50% | -49.96% | |
62 Neutral | $23.15B | 7,452.21 | -0.65% | ― | 18.96% | 58.78% | |
61 Neutral | $36.03B | 6.77 | -7.27% | 2.00% | 8.65% | -7.61% |
* Technology Sector Average
Performance Comparison
SNOW
Snowflake
199.08
67.66
51.48%
ADSK
Autodesk
286.73
35.62
14.19%
WDAY
Workday
231.85
-0.78
-0.34%
HUBS
HubSpot
448.20
-49.06
-9.87%
TEAM
Atlassian
169.17
10.17
6.40%
DDOG
Datadog
129.07
11.86
10.12%
Snowflake Corporate Events
Executive/Board ChangesShareholder Meetings
Snowflake Stockholders Approve Key Governance Changes
Neutral
Jul 3, 2025
On July 2, 2025, Snowflake Inc. held its Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance structure. Stockholders approved the elimination of Class B common stock and the renaming of Class A common stock to ‘Common Stock,’ effective immediately after filing with the State of Delaware. Additionally, the election of Class II directors was confirmed, while a proposal to declassify the board was not approved. The meeting also saw the ratification of PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending January 31, 2026.
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.