Snowflake Q4 Earnings Beat Expectations but Guidance Falls Short
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SNOW?
Source: stocktwits
- Revenue Growth: Snowflake reported Q4 revenue of $1.23 billion, a 30% year-over-year increase, although it fell short of analyst expectations of $1.25 billion, indicating increasing market competition pressure.
- Earnings Per Share: The adjusted diluted earnings per share came in at $0.32, up from $0.30 in the same quarter last year, reflecting ongoing improvements in the company's profitability.
- Customer Growth: In Q4, Snowflake added 740 net new customers, indicating strong demand for its cloud data platform, despite overall revenue not fully meeting market expectations.
- Market Reaction: Despite exceeding Q4 expectations, the company's sales guidance failed to inspire investor confidence, leading to a 2% drop in after-hours trading, reflecting market caution regarding future growth.
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Analyst Views on SNOW
Wall Street analysts forecast SNOW stock price to rise
33 Analyst Rating
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 161.060
Low
237.00
Averages
278.19
High
312.00
Current: 161.060
Low
237.00
Averages
278.19
High
312.00
About SNOW
Snowflake Inc. is a data cloud and artificial intelligence company. Its platform is the technology that powers the AI Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful insights, apply artificial intelligence (AI) to solve business problems, build data applications, and share data and data products. It provides its platform through a customer-centric, and consumption-based business model. Its cloud-native architecture consists of three independently scalable but logically integrated layers across compute, storage, and cloud services. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data to create a unified data record. Its ClearQuery platform allows users to rapidly search, explore, and analyze their data using natural language queries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Per Share: The adjusted diluted earnings per share came in at $0.32, up from $0.30 in the same quarter last year, reflecting ongoing improvements in the company's profitability.
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- Snowflake Revenue Growth: Snowflake's stock surged 5.09% to $169.21, reporting fourth-quarter revenue of $1.28 billion, up 30% year-over-year and above estimates, showcasing strong performance in the cloud computing market with expectations for continued product revenue growth.
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- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential claims against Snowflake Inc., reminding investors to seek lead plaintiff status by April 27, 2026, indicating possible legal liabilities for the company.
- Financial Results Disclosure: On February 28, 2024, Snowflake disclosed financial results indicating that product efficiency gains and tiered storage pricing are expected to materially negatively impact consumption and revenues, leading to diminished investor confidence.
- Significant Stock Price Drop: Following the financial disclosure, Snowflake's Class A common stock plummeted from $230.00 to $188.28, a decline of 18.14%, reflecting market pessimism regarding the company's outlook.
- Executive Change Impact: On the same day, Snowflake announced the retirement of CEO Frank Slootman, further exacerbating market uncertainty about the company's future and potentially undermining investor confidence in corporate governance.
See More
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- Earnings Per Share: The adjusted diluted earnings per share came in at $0.32, up from $0.30 in the same quarter last year, reflecting ongoing improvements in the company's profitability.
- Customer Growth: In Q4, Snowflake added 740 net new customers, indicating strong demand for its cloud data platform, despite overall revenue not fully meeting market expectations.
- Market Reaction: Despite exceeding Q4 expectations, the company's sales guidance failed to inspire investor confidence, leading to a 2% drop in after-hours trading, reflecting market caution regarding future growth.
See More
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- Market Reaction: Following the earnings report, Nvidia shares rose by 2% in after-hours trading, showcasing investor optimism about the company's growth potential, despite mixed views on the threat AI poses to the software sector.
- Industry Warning: Investment manager Dan Niles cautioned that AI could automate workflows and lower prices, putting some software companies at risk of failure, while emphasizing that firms in the database and cybersecurity sectors are likely to be more resilient.
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See More
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- Significant Revenue Growth: Snowflake reported product revenue of $1.23 billion in Q4 FY2026, reflecting a 30% year-over-year increase, showcasing the potential for AI-driven business growth and solidifying its leadership in the data and AI market.
- Customer Base Expansion: The company added 740 net new customers, a 40% increase year-over-year, including 15 Global 2000 organizations, indicating success in attracting large enterprise clients and enhancing market competitiveness.
- AI Product Momentum: The number of accounts utilizing AI saw the largest sequential increase, reaching over 9,100, while Snowflake Intelligence's customer base nearly doubled to 2,500, demonstrating rapid adoption and strong market demand for AI products.
- Acquisition and Investment: Snowflake acquired Observe for approximately $600 million, expected to contribute 1% to revenue growth in FY2027, further strengthening its competitive position in the IT operations market, while the company plans to continue investing in product innovation and market expansion.
See More
