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Snowflake
(NYSE:SNOW)
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Rating:64Neutral
Price Target:
$386.00
▲(21.76% Upside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by solid financial quality for a growth software company (strong free-cash-flow generation and healthy gross margins) and constructive technical momentum (price above all major moving averages with neutral RSI). These positives are partially offset by weak valuation metrics tied to ongoing GAAP losses (negative P/E) and balance-sheet/earnings risks (negative net margin and higher leverage). The latest earnings call adds support via raised guidance and improving non-GAAP margins, though margin pressure from AI mix and cloud costs remains a key risk.
Positive Factors
Strong Cash Generation
Snowflake is generating substantial operating and free cash flow despite continued GAAP losses, demonstrating strong cash conversion and disciplined cash management. This internally generated liquidity can support product investment, AI development, and strategic flexibility over the next several quarters.
Negative Factors
Persistent GAAP Losses
Snowflake remains meaningfully unprofitable under GAAP, limiting the earnings cushion available to absorb execution setbacks. Continued losses also reduce returns on the company’s capital base and make the planned path to GAAP profitability important to future financial quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Snowflake is generating substantial operating and free cash flow despite continued GAAP losses, demonstrating strong cash conversion and disciplined cash management. This internally generated liquidity can support product investment, AI development, and strategic flexibility over the next several quarters.
Read all positive factors
Snowflake Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks revenue down by region to reveal where Snowflake is winning and where growth is lagging. Geographic mix highlights exposure to local economic cycles, currency and regulatory risk, and opportunities for international expansion.
Breaks revenue down by region to reveal where Snowflake is winning and where growth is lagging. Geographic mix highlights exposure to local economic cycles, currency and regulatory risk, and opportunities for international expansion.
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The Fly
The FlySnowflake (SNOW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$113.86B
Dividend YieldN/A
Average Volume (3M)4.43M
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth32.04%
EPS Growth23.46%
CountryUS
Employees9,394
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-3.18
Shares Outstanding352,800,000
10 Day Avg. Volume5,127,516
30 Day Avg. Volume4,428,926
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 Cap0.90
Enterprise Value/Revenue18.92
Enterprise Value/Gross Profit28.23
Enterprise Value/Ebitda-126.44
Forecast
1Y Price Target
$438.39Price Target Upside38.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering36
EPS Forecast (FY)2.22
Revenue Forecast (FY)$6.32B
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 consumption-based access to its cloud data platform. Customers pay based on usage rather than a fixed license, with spending generally tied to (1) compute resources used to run workloads (e.g., quer...
Snowflake Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call was strongly positive, with accelerating 37% product revenue growth, more than 400 basis points of non-GAAP operating margin expansion, robust customer and AI-product adoption, higher full-year revenue guidance, and multiple examples of customer and internal productivity gains. The principal negatives were the lower 74% product gross margin outlook due to the current mix of lower-contribution-margin AI workloads, growing cloud costs, and Q4-weighted bookings. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Product Revenue Growth Accelerated
Q2 product revenue reached $1.49 billion, increasing 37% year over year. This was the third straight quarter of acceleration, followed a 7-point acceleration from the 30% year-over-year growth rate exiting two quarters earlier, and marked the second consecutive quarter of record sequential dollar growth.
Negative Updates
Product Gross Margin Outlook Reduced
Snowflake now expects fiscal 2027 non-GAAP product gross margin of 74%. Management said the revised outlook reflects a higher revenue mix from fast-growing AI workloads, which carry a lower contribution margin today.
Read all updates
Q2-2027 Updates
Positive
Negative
Product Revenue Growth Accelerated
Q2 product revenue reached $1.49 billion, increasing 37% year over year. This was the third straight quarter of acceleration, followed a 7-point acceleration from the 30% year-over-year growth rate exiting two quarters earlier, and marked the second consecutive quarter of record sequential dollar growth.
Read all positive updates
Company Guidance
For FY 2027, Snowflake now expects product revenue of $6.07 billion representing 36% year over year growth, including approximately 1 percentage point of growth from Observe; in Q3, it expects product revenue between $1.588 and $1.593 billion representing 37% to 38% year over year growth. For FY 2027, it now expects 74% non GAAP product gross margin, non GAAP operating margin of 14.5%, up from 13.5%, and reiterated its full year non GAAP adjusted free cash flow margin guide of 23%; for Q3, it expects non GAAP operating margin of 15.5%. Snowflake remains on track for GAAP profitability in Q4 fiscal 28, and expects approximately 54% of its $9 billion RPO to be recognized as revenue in the next 12 months, representing an approximately 42% year over year growth compared to its estimate in the same quarter last year.Snowflake Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.43B | 4.68B | 3.63B | 2.81B | 2.07B | 1.22B |
| Gross Profit | 3.64B | 3.15B | 2.41B | 1.91B | 1.35B | 760.89M |
| EBITDA | -813.42M | -1.08B | -1.10B | -729.32M | -752.46M | -655.46M |
| Net Income | -1.09B | -1.33B | -1.29B | -836.10M | -796.71M | -679.95M |
Balance Sheet | ||||||
| Total Assets | 8.69B | 9.13B | 9.03B | 8.22B | 7.72B | 6.65B |
| Cash, Cash Equivalents and Short-Term Investments | 2.34B | 4.03B | 4.64B | 3.85B | 4.01B | 3.85B |
| Total Debt | 2.76B | 2.74B | 2.69B | 287.98M | 251.66M | 206.30M |
| Total Liabilities | 6.54B | 7.21B | 6.03B | 3.03B | 2.25B | 1.60B |
| Stockholders Equity | 2.15B | 1.92B | 3.00B | 5.18B | 5.46B | 5.05B |
Cash Flow | ||||||
| Free Cash Flow | 1.20B | 1.12B | 913.49M | 778.90M | 496.50M | 81.19M |
| Operating Cash Flow | 1.25B | 1.22B | 959.76M | 848.12M | 545.64M | 110.18M |
| Investing Cash Flow | -286.45M | 312.24M | 190.65M | 832.26M | -597.88M | -20.80M |
| Financing Cash Flow | -1.18B | -1.39B | -226.52M | -854.10M | -92.62M | 178.20M |
Snowflake Technical Analysis
Neutral
317.02
Price Trends
332.27
Negative
298.98
Positive
235.43
Positive
Market Momentum
-2.00
Positive
45.33
Neutral
24.87
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 317.02 is below the 20-day moving average (MA) of 336.19, below the 50-day MA of 332.27, and above the 200-day MA of 235.43, indicating a neutral trend. The MACD of -2.00 indicates Positive momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 24.87 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 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $199.52B | 21.98 | 20.15% | 0.72% | 11.23% | 58.19% | |
79 Outperform | $99.92B | 14.21 | 62.88% | ― | 12.03% | 11.41% | |
79 Outperform | $10.47B | 27.34 | 35.31% | ― | 16.18% | ― | |
76 Outperform | $18.39B | 127.39 | 5.72% | 4.32% | 17.94% | -69.28% | |
69 Neutral | $92.08B | 549.26 | 4.57% | ― | 31.52% | 37.42% | |
64 Neutral | $113.86B | -101.49 | -53.56% | ― | 32.04% | 23.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
SNOW
Snowflake
322.73
69.74
27.57%
ADBE
Adobe
255.06
-99.06
-27.97%
CRM
Salesforce
241.78
-11.12
-4.40%
ESTC
Elastic
98.81
11.66
13.38%
DT
Dynatrace
64.78
14.84
29.72%
DDOG
Datadog
273.09
116.50
74.40%
Snowflake Corporate Events
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Snowflake Announces Major Convertible Notes Private Placement
Neutral
Oct 2, 2026
On September 28, 2026, Snowflake announced a proposed private placement of $3.5 billion in 0.00% convertible senior notes, split between $1.3 billion due 2029 and $2.2 billion due 2031, offered to qualified institutional buyers under Rule 144A. Th...
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...
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.