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Snowflake
(NYSE:SNOW)
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Rating:66Neutral
Price Target:
$332.00
▲(23.85% Upside)
Action:Reiterated
Date:07/17/26
SNOW scores highest on technical strength and a very constructive earnings-call outlook (raised guidance, margin progress, and improving retention), which outweighs weaker fundamentals in GAAP profitability and a more leveraged balance sheet. Valuation remains a notable drag due to losses (negative P/E) and no dividend support, keeping the overall score in the mid-60s rather than higher.
Positive Factors
Strong free cash flow generation
Sustained positive free cash flow (~$1.17B TTM) provides durable funding for R&D, AI investments, buybacks and working capital without relying solely on equity raises. Strong cash conversion versus GAAP losses improves financial optionality and reduces near-term refinancing risk.
Negative Factors
Rising financial leverage
Debt-to-equity rising above 1x marks a structural shift toward a more leveraged capital structure. With ongoing GAAP losses, higher leverage increases fixed obligations, constrains flexibility for opportunistic investments, and raises refinancing and covenant sensitivity over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained positive free cash flow (~$1.17B TTM) provides durable funding for R&D, AI investments, buybacks and working capital without relying solely on equity raises. Strong cash conversion versus GAAP losses improves financial optionality and reduces near-term refinancing risk.
Read all positive factors
Snowflake Key Performance Indicators (KPIs)
Any
Revenue by Geography
Regional revenue breakdown that highlights where Snowflake’s platform is gaining traction and where investment or sales effort may be needed; differences across regions can affect growth durability and exposure to local economic or regulatory changes.
Regional revenue breakdown that highlights where Snowflake’s platform is gaining traction and where investment or sales effort may be needed; differences across regions can affect growth durability and exposure to local economic or regulatory changes.
Data provided by:
The Fly
The FlySnowflake (SNOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$101.65B
Dividend YieldN/A
Average Volume (3M)5.53M
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth31.07%
EPS Growth16.46%
CountryUS
Employees9,060
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-3.52
Shares Outstanding346,600,000
10 Day Avg. Volume3,875,231
30 Day Avg. Volume5,534,683
Financial Highlights & Ratios
PEG Ratio-20.92
Price to Book (P/B)33.80
Price to Sales (P/S)13.88
P/FCF Ratio58.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$308.00Price Target Upside14.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering36
EPS Forecast (FY)1.93
Revenue Forecast (FY)$6.10B
Snowflake Business Overview & Revenue Model
Company Description
Snowflake Inc. delivers a cloud-centric data platform to customers across both the United States and international markets. The company's core offering, known as the Data Cloud, enables users to unify disparate data sources into a singular, reliab...
How the Company Makes Money
Snowflake primarily generates revenue by selling access to its cloud-based data platform under a consumption-oriented model. The company’s largest revenue stream is product revenue, which is earned as customers use Snowflake’s services (e.g., comp...
Snowflake Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 02, 2026
Earnings Call Sentiment Positive
The call presents a strong, growth-focused quarter driven by accelerated product revenue (34% YoY), meaningful AI product traction (CoCo and Snowflake Intelligence), improved net revenue retention (126%), margin expansion and raised FY'27 guidance (from 27% to 31% revenue growth). Strategic partnerships (notably a $6B AWS agreement), large-customer expansion, operational productivity gains from AI, a healthy cash position and active buybacks reinforce a positive momentum narrative. Principal risks highlighted include AI-related cost and gross-margin pressure, booking seasonality concentrated in Q4, potential customer throttling of consumption for cost control, and a modest acquisition-related margin headwind (~150 bps). Overall, positive fundamental growth and margin progress outweigh the manageable risks tied to rapid AI scaling and timing of bookings.Positive Updates
Record Product Revenue and Accelerating Growth
Product revenue of $1.334 billion, up 34% year-over-year (accelerating from 30% last quarter and 26% a year ago), delivering the strongest sequential dollar growth in company history.
Negative Updates
AI Product Gross-Margin and Cost Risk
Management acknowledged AI products (e.g., CoCo) have lower gross margins than the core platform. While the company expects to offset this (e.g., via lower bandwidth cost from the AWS deal and other efficiencies), scaling AI consumption poses a margin risk if offsets are insufficient.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Product Revenue and Accelerating Growth
Product revenue of $1.334 billion, up 34% year-over-year (accelerating from 30% last quarter and 26% a year ago), delivering the strongest sequential dollar growth in company history.
Read all positive updates
Company Guidance
Snowflake raised its FY‑27 product revenue guide to $5.84 billion (up to 31% year‑over‑year growth, from a prior ~27% outlook) and expects Q2 product revenue of $1.415–$1.42 billion (≈30% YoY); it reaffirmed a FY non‑GAAP product gross margin of 75%, raised full‑year non‑GAAP operating margin guidance to 13.5% (Q2 at 12.5%), and reiterated a non‑GAAP adjusted free‑cash‑flow margin target of 23%. The company said Observe contributed <1 percentage‑point to Q1 product revenue and is expected to add roughly 1 percentage‑point to full‑year product revenue growth while imposing an ~150 bp margin headwind that is already included in guidance; the outlook is based on observed acceleration (Q1 product revenue was $1.334 billion, +34% YoY) and no change to its forecasting methodology.Snowflake Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
45
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.03B | 4.68B | 3.63B | 2.81B | 2.07B | 1.22B |
| Gross Profit | 3.38B | 3.15B | 2.41B | 1.91B | 1.35B | 760.89M |
| EBITDA | -936.80M | -1.08B | -1.10B | -729.32M | -752.46M | -655.46M |
| Net Income | -1.20B | -1.33B | -1.29B | -836.10M | -796.71M | -679.95M |
Balance Sheet | ||||||
| Total Assets | 8.55B | 9.13B | 9.03B | 8.22B | 7.72B | 6.65B |
| Cash, Cash Equivalents and Short-Term Investments | 2.95B | 4.03B | 4.64B | 3.85B | 4.01B | 3.85B |
| Total Debt | 2.77B | 2.74B | 2.69B | 287.98M | 251.66M | 206.30M |
| Total Liabilities | 6.61B | 7.21B | 6.03B | 3.03B | 2.25B | 1.60B |
| Stockholders Equity | 1.94B | 1.92B | 3.00B | 5.18B | 5.46B | 5.05B |
Cash Flow | ||||||
| Free Cash Flow | 1.17B | 1.12B | 913.49M | 778.90M | 496.50M | 81.19M |
| Operating Cash Flow | 1.24B | 1.22B | 959.76M | 848.12M | 545.64M | 110.18M |
| Investing Cash Flow | -236.27M | 312.24M | 190.65M | 832.26M | -597.88M | -20.80M |
| Financing Cash Flow | -1.19B | -1.39B | -226.52M | -854.10M | -92.62M | 178.20M |
Snowflake Technical Analysis
Positive
268.06
Price Trends
253.40
Positive
203.27
Positive
211.23
Positive
Market Momentum
15.21
Negative
77.11
Negative
86.33
Negative
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 268.06 is below the 20-day moving average (MA) of 276.73, above the 50-day MA of 253.40, and above the 200-day MA of 211.23, indicating a bullish trend. The MACD of 15.21 indicates Negative momentum. The RSI at 77.11 is Negative, neither overbought nor oversold. The STOCH value of 86.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNOW.
Snowflake Risk Analysis
Snowflake disclosed 55 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $12.86B | 82.30 | 6.00% | ― | 18.82% | -66.60% | |
77 Outperform | $95.39B | 696.39 | 3.78% | ― | 29.54% | -21.11% | |
73 Outperform | $27.14B | -938.75 | -0.99% | ― | 23.64% | 68.36% | |
72 Outperform | $39.60B | 49.80 | 10.41% | ― | 13.70% | 76.27% | |
66 Neutral | $101.65B | -83.32 | -57.21% | ― | 31.07% | 16.46% | |
62 Neutral | $25.63B | -121.57 | -16.70% | ― | 24.74% | 49.81% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SNOW
Snowflake
316.84
106.30
50.49%
WDAY
Workday
170.64
-58.45
-25.51%
TEAM
Atlassian
113.32
-72.18
-38.91%
MDB
MongoDB
376.36
140.54
59.60%
DT
Dynatrace
50.86
0.33
0.65%
DDOG
Datadog
283.17
146.21
106.75%
Snowflake Corporate Events
Business Operations and StrategyExecutive/Board Changes
Snowflake Grants Major Performance-Based Equity to CEO
Positive
Jul 17, 2026
On July 15, 2026, Snowflake’s board compensation committee granted CEO Sridhar Ramaswamy a performance-based restricted stock unit award covering 1,000,000 shares, structured around ambitious share price milestones and extended service condi...
Executive/Board ChangesShareholder Meetings
Snowflake Shareholders Reject Executive Pay, Support Governance Changes
Negative
Jun 30, 2026
On June 29, 2026, Snowflake Inc. held its 2026 Annual Meeting of Stockholders virtually, with 346,602,915 common shares entitled to vote. Stockholders elected Class III directors Teresa Briggs, Mark D. McLaughlin, and Sridhar Ramaswamy to serve un...
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.