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Snowflake (SNOW)
NYSE:SNOW
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Snowflake
(NYSE:SNOW)
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Rating:68Neutral
Price Target:
$255.00
▲(13.51% Upside)
Snowflake's overall stock score is driven by strong earnings call performance and positive technical indicators, despite challenges in profitability and valuation concerns. The company's strategic focus on AI and customer expansion supports a positive outlook, but profitability remains a key area for improvement.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for Snowflake's services, supporting long-term market expansion and competitive positioning.
AI Integration
AI integration enhances product offerings, driving customer acquisition and positioning Snowflake as a leader in enterprise AI solutions.
Strategic Partnerships
Strong partnerships with major cloud providers like Microsoft enhance distribution channels and customer reach, supporting sustained growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues could hinder Snowflake's ability to reinvest in growth and innovation, affecting long-term financial health.
Cash Flow Concerns
Weak cash flow generation limits Snowflake's financial flexibility, potentially impacting its ability to fund strategic initiatives and operations.
Operational Costs
Rising operational costs, particularly in hiring, may pressure margins and reduce operational efficiency, affecting long-term profitability.
Snowflake (SNOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$76.11B
Dividend YieldN/A
Average Volume (3M)6.60M
Price to Earnings (P/E)―
Beta (1Y)1.38
Revenue Growth28.37%
EPS Growth-35.49%
CountryUS
Employees7,834
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.35
Shares Outstanding338,800,000
10 Day Avg. Volume4,388,490
30 Day Avg. Volume6,596,715
Financial Highlights & Ratios
PEG Ratio-0.91
Price to Book (P/B)20.13
Price to Sales (P/S)16.65
P/FCF Ratio66.11
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue17.99
Enterprise Value/Gross Profit27.01
Enterprise Value/Ebitda-63.26
Forecast
1Y Price Target
$265.88Price Target Upside18.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering35
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. Established in 2012, Snowflake operates primarily in the technology sector, offering solutions that allow organizations to manage and analyze large volumes of data seamlessly across multiple clouds. Its core products include the Snowflake Data Cloud, which enables data collaboration and sharing, and a variety of tools that support data integration, security, and machine learning.
How the Company Makes MoneySnowflake 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 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:
Main Street Data
Main Street DataSnowflake Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in product revenue and AI adoption, complemented by strategic partnerships and a robust customer base expansion. Despite some challenges in Europe and increased hiring costs, the overall performance and outlook remain positive.Q2-2026 Updates
Positive Updates
Strong Product Revenue Growth
Product revenue for Q2 was $1.09 billion, up 32% year over year, demonstrating an acceleration in growth from last quarter.
Healthy Financial Metrics
Non-GAAP operating margin increased to 11%, and the non-GAAP product gross margin was 76.4%. Non-GAAP adjusted free cash flow margin was 6% in Q2.
Expansion in AI and New Features
AI influenced nearly 50% of new logos won in Q2, and 6,100 accounts were using Snowflake's AI weekly. Approximately 250 capabilities were launched to general availability in the first half of the year.
Strong Customer and Partner Growth
Added 533 customers, including 15 Global 2,000 companies, and net new customer adds in the quarter were up 21% year over year.
Strategic Partnerships and Integration
Azure was the fastest-growing cloud at 40% year over year, with strong alignment with Microsoft and partnerships with OpenAI and Anthropic.
Negative Updates
Challenges in Europe
While Europe is contributing to growth, it is still developing and lagging behind the U.S. in terms of customer acquisition and growth.
Operational and Hiring Costs
Added 529 heads, including 364 in sales and marketing, which could impact operating margins in the short term.
Company Guidance
During Snowflake's Q2 Fiscal 2026 earnings call, the company provided robust guidance for the upcoming quarters, highlighting several key metrics and achievements. Snowflake reported a 32% year-over-year increase in product revenue, reaching $1.09 billion, with remaining performance obligations totaling $6.9 billion, reflecting a 33% year-over-year growth. The net revenue retention rate stood at a healthy 125%, while the non-GAAP operating margin improved to 11%. For Q3, Snowflake expects product revenue between $1.125 billion and $1.13 billion, representing 25-26% year-over-year growth, and a non-GAAP operating margin of 9%. The full-year Fiscal 2026 product revenue guidance was increased to $4.395 billion, indicating 27% year-over-year growth, with expectations for a 75% non-GAAP product gross margin and a 9% non-GAAP operating margin. Additionally, Snowflake is targeting a non-GAAP adjusted free cash flow margin of 25% for the full year. The company emphasized its commitment to scaling efficiently, with strategic investments in growth, partnerships, and product innovation, particularly in AI, where 25% of new logos were influenced by AI capabilities, and 50% of new use cases involve AI, reinforcing Snowflake's position as a leader in the enterprise AI space.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.65
Positive
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.70
Positive
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.60
Neutral
| 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
Positive
224.64
Price Trends
213.82
Positive
209.21
Positive
186.69
Positive
Market Momentum
3.14
Positive
54.48
Neutral
48.96
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 224.64 is below the 20-day moving average (MA) of 225.34, above the 50-day MA of 213.82, and above the 200-day MA of 186.69, indicating a neutral trend. The MACD of 3.14 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $65.86B | 114.08 | 6.36% | ― | 14.21% | -62.56% | |
71 Outperform | $14.93B | 30.47 | 18.27% | ― | 18.70% | 214.47% | |
68 Neutral | $76.11B | ― | -42.45% | ― | 28.37% | -35.49% | |
68 Neutral | $48.50B | 401.82 | 3.90% | ― | 26.00% | -25.64% | |
58 Neutral | $43.72B | -169.70 | -19.08% | ― | 19.66% | 15.17% | |
47 Neutral | $87.63B | 27.21 | 9.51% | 0.10% | -3.81% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SNOW
Snowflake
224.64
109.78
95.58%
MSTR
Strategy
309.06
140.46
83.31%
WDAY
Workday
246.67
2.26
0.92%
TEAM
Atlassian
166.65
7.84
4.94%
DT
Dynatrace
49.51
-3.96
-7.41%
DDOG
Datadog
139.07
24.01
20.87%
Snowflake Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Snowflake Appoints New CFO Amid Strategic Shift
Positive
Sep 3, 2025
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.
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.