Snowflake (NYSE:SNOW) Issues Earnings Results, Beats Expectations By $0.05 EPS

Snowflake (NYSE:SNOW) posted its quarterly earnings results on Wednesday. The company reported $0.32 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.05, Briefing.com reports. The firm had revenue of $1.28 billion during the quarter, compared to analyst estimates of $1.25 billion. Snowflake had a negative net margin of 28.43% and a negative return on equity of 48.50%. The company’s quarterly revenue was up 30.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.30 earnings per share.

Here are the key takeaways from Snowflake’s conference call:

• Strong FY26 finish and enterprise demand — product revenue grew 30% Y/Y to $1.23B, remaining performance obligations were $9.77B (+42% Y/Y), net revenue retention remained 125%, and the quarter included the largest deal in company history (> $400M) plus seven nine‑figure contracts.
• Rapid AI traction — Snowflake reports > 9,100 accounts using AI, with 2,500+ accounts on Snowflake Intelligence and 4,400+ customers using Cortex Code, which management says is driving faster deployments and higher platform usage.
• Confident FY27 guide and margin expansion — Q1 product revenue guide of $1.262–$1.267B (27% Y/Y) and FY27 product revenue ~$5.66B (27% Y/Y); management targets ~75% gross margin, 12.5% non‑GAAP operating margin, and 23% adjusted FCF margin (includes Observe acquisition contribution and ~150 bps FCF headwind); company repurchased ~$150M of stock and ended Q with ~$4.8B in liquidity.
• Consumption risk from AI agents — management acknowledged possible “sticker shock” as agents expand consumption and said it will add controls (per‑user/account caps) and pricing options to mitigate unpredictable usage and billing spikes.

Snowflake Trading Down 4.5%

NYSE:SNOW traded down $7.87 on Friday, hitting $165.19. 4,586,362 shares of the stock were exchanged, compared to its average volume of 6,535,604. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.37 and a current ratio of 1.37. The stock has a market capitalization of $56.53 billion, a price-to-earnings ratio of -41.79 and a beta of 1.14. The company’s 50-day moving average price is $200.03 and its 200 day moving average price is $222.74. Snowflake has a 52 week low of $120.10 and a 52 week high of $280.67.

Analyst Ratings Changes

A number of analysts have weighed in on SNOW shares. Wedbush reiterated an “outperform” rating and issued a $270.00 price target on shares of Snowflake in a research report on Thursday, December 4th. Cantor Fitzgerald restated an “overweight” rating and set a $250.00 price target on shares of Snowflake in a research report on Monday. Monness Crespi & Hardt lifted their price objective on Snowflake from $275.00 to $282.00 and gave the company a “buy” rating in a research report on Thursday. Sanford C. Bernstein reduced their price objective on Snowflake from $237.00 to $195.00 and set a “market perform” rating on the stock in a research note on Thursday. Finally, Macquarie Infrastructure increased their target price on Snowflake from $235.00 to $250.00 and gave the stock a “neutral” rating in a report on Thursday, December 4th. Two research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $248.58.

Key Headlines Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Q4 beat and upbeat FY‑27 product revenue outlook — Snowflake reported $1.28B revenue (+30% Y/Y) and EPS above estimates; management set FY‑27 product‑revenue guidance that exceeded consensus, reinforcing AI‑led demand for its data platform. Snowflake expects annual product revenue above estimates
• Positive Sentiment: AI momentum & commercial traction — Analysts and coverage note Snowflake’s positioning as an enterprise AI data platform (agentic capabilities, partnerships with LLM providers) and strong customer metrics (RPO growth, retention), which are constructive for medium‑term revenue expansion. Is Snowflake’s Stock Meltdown Over? Signs Point to a Bottom
• Neutral Sentiment: Institutional accumulation vs. recent selling — Data show institutions remain active buyers overall (supportive long‑term), but recent quarter saw both notable buys and large disposals among big holders, creating mixed flow dynamics for the stock near current levels. Snowflake institutional ownership
• Negative Sentiment: Widespread class‑action publicity and looming April 27 deadline — Multiple law firms have issued notices about securities lawsuits and the deadline to seek lead‑plaintiff status, increasing legal risk and headline volatility that can pressure the share price. SNOW SHAREHOLDER ACTION REMINDER
• Negative Sentiment: Analysts cut price targets despite buy/overweight ratings — Several firms trimmed targets after the print (UBS, Morgan Stanley, Piper, Canaccord and others), signaling analyst caution about the guide and near‑term growth cadence; these downgrades amplify selling pressure. These Analysts Slash Their Forecasts On Snowflake
• Negative Sentiment: Insider selling and headline‑sensitive market — Public filings and third‑party trackers show heavy insider sales in recent months; combined with a consumption‑based revenue model, this raises investor sensitivity to near‑term execution and guidance. Snowflake stock falls on Q4 2026 Earnings (Quiver)

Insider Buying and Selling at Snowflake

In other Snowflake news, Director Frank Slootman sold 200,000 shares of Snowflake stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $221.83, for a total transaction of $44,366,000.00. Following the completion of the sale, the director owned 50,329 shares of the company’s stock, valued at approximately $11,164,482.07. The trade was a 79.89% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Christian Kleinerman sold 10,000 shares of the firm’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $249.53, for a total value of $2,495,300.00. Following the completion of the transaction, the executive vice president owned 512,450 shares in the company, valued at $127,871,648.50. This represents a 1.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 713,681 shares of company stock valued at $148,264,518 in the last three months. Insiders own 6.80% of the company’s stock.

Institutional Investors Weigh In On Snowflake

A number of hedge funds have recently modified their holdings of the business. Kemnay Advisory Services Inc. bought a new position in Snowflake in the fourth quarter valued at $28,000. Greenline Wealth Management LLC bought a new position in shares of Snowflake in the 4th quarter valued at about $29,000. JPL Wealth Management LLC acquired a new stake in shares of Snowflake in the third quarter valued at about $39,000. Geneos Wealth Management Inc. raised its holdings in Snowflake by 29.7% during the first quarter. Geneos Wealth Management Inc. now owns 319 shares of the company’s stock worth $47,000 after acquiring an additional 73 shares in the last quarter. Finally, Strive Financial Group LLC bought a new stake in Snowflake during the fourth quarter worth about $59,000. Institutional investors and hedge funds own 65.10% of the company’s stock.

About Snowflake

Snowflake Inc is a cloud-native data platform company that provides a suite of services for storing, processing and analyzing large volumes of data. Its core offering, often described as the Snowflake Data Cloud, combines data warehousing, data lake and data sharing capabilities in a single managed service delivered across major public cloud providers. The platform is designed to support analytics, data engineering, data science and application workloads with a focus on scalability, concurrency and simplified administration.

Key products and capabilities include a multi-cluster, shared-data architecture that separates compute from storage; continuous data ingestion and streaming; support for structured and semi-structured data formats; tools for data governance, security and compliance; and developer frameworks for building data applications.