Choosing between Salesforce (CRM -2.09%) and Snowflake (SNOW +1.71%) requires weighing steady profitability against explosive revenue growth. Both companies are essential players in the modern data economy but offer very different investment profiles.
Salesforce focuses on helping companies manage customer relationships through a suite of integrated software tools. Snowflake provides a cloud-native platform that allows organizations to consolidate and analyze vast amounts of data, often serving as the foundation for enterprise AI strategies.
The case for SalesforceSalesforce operates as a dominant force in the tech stocks landscape, providing software that manages sales, service, and marketing on a single platform. The company recently pivoted toward agentic AI through its Agentforce platform, which allows businesses to deploy autonomous digital workers. It serves a massive global customer base and has expanded its capabilities by acquiring data management firms like Informatica and integrating them into its core ecosystem.
In FY 2026, revenue reached nearly $41.5 billion, representing growth of approximately 9.6% over the prior year. The company demonstrated significant bottom-line improvement, reporting net income of close to $7.5 billion. This resulted in a net margin of roughly 18%, as Salesforce continues to focus on balancing expansion with disciplined expense management.
As of its January 2026 balance sheet, the debt-to-equity ratio was approximately 0.3x, which measures total debt relative to shareholder equity. The current ratio, comparing current assets to liabilities, was roughly 0.8x. Free cash flow, calculated as cash flow from operations minus capital expenditures, reached close to $14.4 billion. Note that stock-based compensation represented roughly 23.4% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for SnowflakeSnowflake provides the AI Data Cloud, a platform that enables organizations to store and process data across different cloud providers. Its consumption-based model means customers pay for the resources they actually use, which appeals to businesses looking for flexibility. By early 2026, the company served over 800 of the Forbes Global 2000, emphasizing its importance to large-scale enterprises that require high-performance data engineering and analytics.
In FY 2026, revenue reached approximately $4.7 billion, showing robust growth of roughly 29.2% compared to the previous year. Despite this rapid top-line expansion, the company reported a net loss of close to $1.3 billion. This produced a net margin of roughly -28.4%, illustrating that the business is still heavily prioritizing market share gains and research over immediate GAAP profitability.
According to its January 2026 balance sheet, the debt-to-equity ratio stood at approximately 1.4x. The current ratio was close to 1.3x, suggesting a comfortable buffer of short-term assets. Free cash flow for the period was roughly $1.1 billion. Note that stock-based compensation represented roughly 130.9% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.
Risk profile comparisonSalesforce faces intense competition from large cloud providers and AI-native start-ups that could disrupt its market share. The company is also a frequent target for sophisticated cyberattacks, and any major breach could lead to significant legal liabilities. Furthermore, the integration of large acquisitions like Braze (BRZE +0.06%) or Informatica carries risks of operational disruption and could dilute value if anticipated synergies fail to materialize.
Snowflake faces competitive pressure from major public cloud providers like Microsoft (MSFT +0.74%) and Amazon (AMZN -0.43%), which offer competing data products. Its consumption-based revenue model also creates less visibility than traditional subscriptions, as customer spending can fluctuate based on macroeconomic shifts. Additionally, any security incidents involving unauthorized access to customer data can cause lasting reputational damage and lead to regulatory investigations.
Valuation comparisonSalesforce currently trades at a much lower earnings multiple than Snowflake, reflecting its more mature business model and established profitability.
MetricSalesforceSnowflakeForward P/E14.9x141.5xP/S ratio4.7x20.4xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.
The P/S ratio measures a company's market value against its sales over the past twelve months. Salesforce appears more conservative on this metric, while Snowflake continues to command a premium for its higher growth rates.
Salesforce is not a business anyone should dismiss lightly, but at this stage of the AI build-out, I'd rather own the platform where data actually lives than the one that sells software on top of it. That's why my pick is Snowflake.
AI is expanding the volume of data enterprises need to store and query, and that goes directly through Snowflake's platform. The company reported its third consecutive quarter of accelerating growth in Q2 fiscal 2027, with product revenue up 37%. The momentum is looking good.
To its credit, Salesforce is profitable and returning significant cash to shareholders. It delivered a record Q2, with revenue up 11% year over year, free cash flow up 81%, and Agentforce adoption accelerating. But some of that earnings pop came from an investment windfall rather than what Salesforce actually sells.
Snowflake is still posting net losses, and patient investors need to be comfortable with that trade-off. But I'm still interested in this stock because AI is expanding its addressable market rather than threatening it. Every new model, every new agent, every new enterprise workflow means more data to store and query. For a long-term investor, owning the infrastructure that makes AI usable at scale feels like a durable position to be in.
Snowflake Inc. (SNOW - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned -6%, compared to the Zacks S&P 500 composite's -1.2% change. During this period, the Zacks Internet - Software industry, which Snowflake falls in, has lost 5.8%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Snowflake is expected to post earnings of $0.60 per share, indicating a change of +71.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $2.23 for the current fiscal year indicates a year-over-year change of +78.4%. This estimate has changed +1.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.95 indicates a change of +32.5% from what Snowflake is expected to report a year ago. Over the past month, the estimate has changed +3.9%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Snowflake.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Snowflake, the consensus sales estimate for the current quarter of $1.65 billion indicates a year-over-year change of +36.1%. For the current and next fiscal years, $6.3 billion and $8.04 billion estimates indicate +34.5% and +27.6% changes, respectively.
Last Reported Results and Surprise HistorySnowflake reported revenues of $1.55 billion in the last reported quarter, representing a year-over-year change of +35.1%. EPS of $0.62 for the same period compares with $0.35 a year ago.
Compared to the Zacks Consensus Estimate of $1.47 billion, the reported revenues represent a surprise of +4.91%. The EPS surprise was +37.78%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Snowflake is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snowflake. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Diversify Advisory Services LLC cut its position in shares of Snowflake Inc. (NYSE:SNOW – Free Report) by 26.1% during the third quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 90,707 shares of the company’s stock after selling 32,030 shares during the period. Diversify Advisory Services LLC’s holdings in Snowflake were worth $30,393,000 as of its most recent filing with the SEC.
A number of other hedge funds have also recently added to or reduced their stakes in SNOW. Prime Capital Investment Advisors LLC increased its holdings in Snowflake by 233.1% in the third quarter. Prime Capital Investment Advisors LLC now owns 5,739 shares of the company’s stock valued at $1,949,000 after buying an additional 4,016 shares in the last quarter. Prentice Wealth Management LLC raised its position in shares of Snowflake by 13.1% in the third quarter. Prentice Wealth Management LLC now owns 2,236 shares of the company’s stock worth $759,000 after acquiring an additional 259 shares during the period. Net Worth Advisory Group acquired a new position in shares of Snowflake in the third quarter worth about $220,000. Sumitomo Mitsui DS Asset Management Company Ltd raised its position in shares of Snowflake by 3.5% in the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 59,472 shares of the company’s stock worth $20,194,000 after acquiring an additional 1,987 shares during the period. Finally, Novem Group purchased a new stake in shares of Snowflake during the 3rd quarter worth about $254,000. 65.10% of the stock is owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades
SNOW has been the topic of a number of analyst reports. TD Cowen raised their target price on Snowflake from $370.00 to $450.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. Argus lifted their price target on Snowflake from $300.00 to $450.00 and gave the company a “buy” rating in a research note on Friday, September 4th. Truist Financial set a $425.00 price target on Snowflake and gave the company a “buy” rating in a research note on Thursday, September 3rd. UBS Group upped their price target on Snowflake from $425.00 to $500.00 and gave the stock a “buy” rating in a report on Thursday, September 3rd. Finally, KeyCorp increased their price target on Snowflake from $285.00 to $325.00 and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Thirty-six research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $413.87.
Check Out Our Latest Analysis on Snowflake
Trending Headlines about Snowflake
Here are the key news stories impacting Snowflake this week:
Positive Sentiment: Snowflake’s consumption-based cloud data platform continues to benefit from AI adoption. The company’s revenue recently grew 35% year over year to $1.55 billion, exceeding analyst expectations, while adjusted earnings also surpassed estimates. Its partnerships and collaborations around secure data movement, sovereign AI and government workloads could create additional demand for Snowflake’s platform. Snowflake Grows Revenue 35% and Still Loses Money on Every Dollar
Positive Sentiment: Broader optimism about the AI infrastructure spending cycle is supporting Snowflake’s investment narrative. Technology analyst Dan Ives argued that the AI buildout remains in its early stages, with Snowflake among the companies positioned to benefit as enterprises direct more spending toward data, computing and AI applications. The AI Buildout Is Only 15% Complete
Neutral Sentiment: Recent commentary highlights Snowflake’s strong market performance and the possibility of further gains ahead of its next earnings report. However, these are largely market outlooks and price predictions rather than new company fundamentals. Price Prediction: Snowflake Will Hit $400 on This Date
Negative Sentiment: Investors remain concerned that Snowflake still loses money despite rapid revenue growth. The company has a negative net margin and negative return on equity, while its elevated valuation leaves less room for disappointing consumption trends, weaker AI spending or cautious corporate budgets. Comparisons with more profitable technology companies also expose Snowflake’s ongoing path to sustained earnings as a risk. UiPath vs. Snowflake: Which Technology Stock Is a Better Buy?
Insider Activity at Snowflake
In related news, Director Frank Slootman sold 251,010 shares of Snowflake stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $325.53, for a total value of $81,711,285.30. Following the sale, the director directly owned 28,535 shares in the company, valued at approximately $9,288,998.55. The trade was a 89.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christian Kleinerman sold 25,000 shares of Snowflake stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $325.00, for a total value of $8,125,000.00. Following the completion of the sale, the executive vice president owned 340,379 shares in the company, valued at approximately $110,623,175. The trade was a 6.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 946,429 shares of company stock worth $313,903,628 in the last quarter. Company insiders own 4.80% of the company’s stock.
Snowflake Stock Performance
NYSE:SNOW opened at $319.56 on Wednesday. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94. The stock has a market capitalization of $112.74 billion, a PE ratio of -100.49 and a beta of 1.35. Snowflake Inc. has a fifty-two week low of $118.30 and a fifty-two week high of $384.56. The company has a fifty day moving average of $332.54 and a two-hundred day moving average of $257.95.
Snowflake (NYSE:SNOW – Get Free Report) last announced its earnings results on Wednesday, September 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.17. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. The business had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same quarter last year, the business earned $0.35 earnings per share. The company’s revenue for the quarter was up 35.1% compared to the same quarter last year. As a group, research analysts forecast that Snowflake Inc. will post -1.44 earnings per share for the current fiscal year.
About Snowflake
(Free Report)
Snowflake Inc is a cloud-based data platform company that helps organizations store, process, analyze and share data across public cloud environments. Its platform is designed to support data warehousing, data lakes, data engineering, data applications and analytics without requiring customers to manage the underlying hardware or software infrastructure.
Snowflake offers services for data sharing and collaboration, allowing organizations to securely exchange data with internal teams, customers, partners and third-party providers.
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In the latest trading session, Snowflake Inc. (SNOW - Free Report) closed at $315.35, marking a +2.77% move from the previous day. This change outpaced the S&P 500's 0.41% gain on the day. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.11%.
Heading into today, shares of the company had lost 7.7% over the past month, lagging the Computer and Technology sector's loss of 0.92% and the S&P 500's gain of 1.46%.
The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is forecasted to report an EPS of $0.6, showcasing a 71.43% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 36.08% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.23 per share and a revenue of $6.3 billion, signifying shifts of +78.4% and +34.52%, respectively, from the last year.
Any recent changes to analyst estimates for Snowflake Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.48% upward. Snowflake Inc. presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Snowflake Inc. is currently being traded at a Forward P/E ratio of 137.68. This represents a premium compared to its industry average Forward P/E of 20.63.
Investors should also note that SNOW has a PEG ratio of 4.57 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.22 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
IFP Advisors Inc reduced its holdings in shares of Snowflake Inc. (NYSE:SNOW – Free Report) by 17.2% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 16,551 shares of the company’s stock after selling 3,427 shares during the quarter. IFP Advisors Inc’s holdings in Snowflake were worth $5,620,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors also recently modified their holdings of the company. Nvwm LLC increased its holdings in Snowflake by 0.6% in the 3rd quarter. Nvwm LLC now owns 6,215 shares of the company’s stock worth $2,110,000 after purchasing an additional 37 shares in the last quarter. Myecfo LLC boosted its stake in shares of Snowflake by 4.1% during the third quarter. Myecfo LLC now owns 968 shares of the company’s stock valued at $329,000 after purchasing an additional 38 shares in the last quarter. Fermata Advisors LLC grew its holdings in shares of Snowflake by 4.9% during the third quarter. Fermata Advisors LLC now owns 893 shares of the company’s stock worth $303,000 after purchasing an additional 42 shares during the last quarter. Parkside Financial Bank & Trust grew its holdings in shares of Snowflake by 15.6% during the second quarter. Parkside Financial Bank & Trust now owns 334 shares of the company’s stock worth $85,000 after purchasing an additional 45 shares during the last quarter. Finally, Tsfg LLC increased its stake in shares of Snowflake by 27.8% in the second quarter. Tsfg LLC now owns 230 shares of the company’s stock valued at $59,000 after buying an additional 50 shares during the period. 65.10% of the stock is owned by hedge funds and other institutional investors.
Analyst Ratings Changes A number of research analysts recently issued reports on the stock. Guggenheim reiterated a “neutral” rating on shares of Snowflake in a report on Thursday, September 3rd. Evercore reissued an “outperform” rating and set a $430.00 target price on shares of Snowflake in a report on Thursday, September 3rd. Needham & Company LLC restated a “buy” rating and issued a $450.00 price target on shares of Snowflake in a research report on Monday, October 12th. Morgan Stanley raised their price target on shares of Snowflake from $300.00 to $470.00 and gave the company an “overweight” rating in a research note on Thursday, September 3rd. Finally, JPMorgan Chase & Co. raised their price target on shares of Snowflake from $285.00 to $426.00 and gave the company an “overweight” rating in a research note on Thursday, September 3rd. Thirty-five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $414.24.
View Our Latest Stock Report on SNOW Snowflake Trading Down 0.1% NYSE:SNOW opened at $306.50 on Monday. Snowflake Inc. has a 52 week low of $118.30 and a 52 week high of $384.56. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94. The firm’s fifty day moving average is $333.25 and its 200-day moving average is $255.61. The firm has a market cap of $108.13 billion, a P/E ratio of -96.38 and a beta of 1.35.
Snowflake (NYSE:SNOW – Get Free Report) last announced its earnings results on Wednesday, September 2nd. The company reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.17. The business had revenue of $1.55 billion during the quarter, compared to the consensus estimate of $1.48 billion. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. Snowflake’s quarterly revenue was up 35.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.35 earnings per share. Equities analysts expect that Snowflake Inc. will post -1.44 earnings per share for the current year.
Insider Buying and Selling at Snowflake In other Snowflake news, CAO Emily Ho sold 768 shares of the stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $332.93, for a total transaction of $255,690.24. Following the completion of the sale, the chief accounting officer directly owned 39,958 shares in the company, valued at approximately $13,303,216.94. This trade represents a 1.89% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Frank Slootman sold 102,791 shares of the stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $335.22, for a total value of $34,457,599.02. Following the sale, the director owned 19,024 shares of the company’s stock, valued at approximately $6,377,225.28. The trade was a 84.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 956,744 shares of company stock valued at $316,741,285. 4.80% of the stock is owned by corporate insiders.
Snowflake Company Profile (Free Report)
Snowflake Inc is a cloud-based data platform company that helps organizations store, process, analyze and share data across public cloud environments. Its platform is designed to support data warehousing, data lakes, data engineering, data applications and analytics without requiring customers to manage the underlying hardware or software infrastructure.
Snowflake offers services for data sharing and collaboration, allowing organizations to securely exchange data with internal teams, customers, partners and third-party providers.
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Snowflake's latest earnings report lands on a specific date that could push shares to a level the stock has never closed above, and the setup heading into that session looks unlike anything in the past two years.
Snowflake (NYSE:SNOW | SNOW Price Prediction) will trade at or above $400 per share before December 31, 2026. The trigger is its Q3 fiscal 2027 earnings report, expected December 2, 2026.
At $325.94 today, the stock needs a 22.7% gain to get there. The stock has traded within 4% of the target before: shares hit an intraday high of $384.56 during the session that followed its last report.
Key Numbers to Watch on December 2
Snowflake hasn’t confirmed the date yet, so keep an eye out for its announcement. When results arrive, start with product revenue, which management guided to $1,588M–$1,593M, or 37–38% growth.
Next, check the non-GAAP operating margin against the 15.5% target. Analysts expect EPS of $0.5999. Finally, look for another increase to full-year guidance.
Reason One: Growth Keeps Speeding Up
In Q2, product revenue rose 37% to $1.49B. That was the third consecutive quarter of faster growth. Management raised its full-year product revenue forecast to $6,070M from $5,840M. It also said its outlook is built on “observed behavior up until the call,” which tends to produce conservative guidance.
Market participants put an 84% probability on Q3 product revenue exceeding $1.62 billion, which is above the high end of guidance. That market is thinly traded, though. Snowflake has beaten EPS estimates five quarters in a row. Q2 came in at $0.62 against a $0.447 consensus.
Reason Two: Backlog and Retention Point to Another Guidance Raise
Remaining performance obligations (signed contracts not yet booked as revenue) totaled $9B, up 30%. About 54% of that should be recognized within 12 months. Net revenue retention was 126%, meaning existing customers spent more than a year earlier.
Customers paying over $1 million a year grew 27% to 828. Management credited AI products with “approximately half of the acceleration,” and CoCo, its AI coding agent, passed 9,100 accounts.
Reason Three: Analysts Keep Raising Estimates
The Q3 EPS consensus has increased to $0.5999 from $0.5150 90 days ago. Over the past 30 days, analysts made 39 upward revisions and only 1 downward.
Of the analysts covering the stock, 45 rate it a buy and 1 rates it a sell, with an average price target of $425.14. After past earnings beats, the stock has moved an average of 6.63% on the reaction day.
Retirement investors should also track margins. The non-GAAP operating margin expanded to 15.3% from 11% a year earlier.
Management is guiding to a 23% adjusted free cash flow margin for the year and says it’s on track for GAAP profitability in Q4 fiscal 28. Until then, the GAAP figures remain a drag: Q2 brought a $191.7M net loss and $456M in stock-based compensation.
What Happens If the Call Is Wrong
Snowflake’s pattern of fading after strong reports is the main risk: the week after Q2, shares fell 7.71%. Even so, a fourth straight quarter of faster growth plus another guidance raise puts $400 within reach by December 31.
Contact [email protected] for any questions or corrections.
Snowflake Inc. (NYSE:SNOW – Get Free Report)’s share price traded down 5.6% during trading on Friday. The company traded as low as $320.97 and last traded at $316.3650. 514,456 shares were traded during mid-day trading, a decline of 92% from the average session volume of 6,460,110 shares. The stock had previously closed at $335.07.
Analyst Upgrades and Downgrades SNOW has been the subject of several recent research reports. Argus boosted their target price on shares of Snowflake from $300.00 to $450.00 and gave the company a “buy” rating in a research note on Friday, September 4th. Monness Crespi & Hardt raised their price target on shares of Snowflake from $380.00 to $450.00 and gave the stock a “buy” rating in a research report on Thursday, September 3rd. Phillip Securities lowered shares of Snowflake from a “strong-buy” rating to a “moderate buy” rating in a report on Monday, October 12th. Wells Fargo & Company lifted their price target on shares of Snowflake from $500.00 to $525.00 and gave the company an “overweight” rating in a report on Thursday, September 3rd. Finally, The Goldman Sachs Group boosted their price objective on shares of Snowflake from $300.00 to $436.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. Thirty-five equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Snowflake presently has a consensus rating of “Moderate Buy” and an average price target of $414.24.
Read Our Latest Stock Analysis on SNOW
Snowflake Trading Down 8.5% The firm has a market cap of $108.13 billion, a P/E ratio of -96.38 and a beta of 1.35. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94. The firm has a fifty day moving average of $333.25 and a 200-day moving average of $254.90. Snowflake (NYSE:SNOW – Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.17. Snowflake had a negative return on equity of 46.32% and a negative net margin of 20.07%. The business had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.48 billion. During the same quarter in the previous year, the firm posted $0.35 EPS. The business’s revenue for the quarter was up 35.1% compared to the same quarter last year. Equities research analysts forecast that Snowflake Inc. will post -1.44 earnings per share for the current year.
Insider Buying and Selling In other news, CAO Emily Ho sold 768 shares of the company’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $332.93, for a total transaction of $255,690.24. Following the completion of the transaction, the chief accounting officer owned 39,958 shares in the company, valued at approximately $13,303,216.94. This represents a 1.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Christian Kleinerman sold 15,000 shares of the stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $341.57, for a total transaction of $5,123,550.00. Following the completion of the sale, the executive vice president directly owned 313,738 shares in the company, valued at approximately $107,163,488.66. This trade represents a 4.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,246,429 shares of company stock valued at $396,227,952 in the last three months. 4.80% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Nvwm LLC increased its stake in shares of Snowflake by 0.6% in the third quarter. Nvwm LLC now owns 6,215 shares of the company’s stock valued at $2,110,000 after purchasing an additional 37 shares during the period. Myecfo LLC boosted its position in shares of Snowflake by 4.1% during the third quarter. Myecfo LLC now owns 968 shares of the company’s stock worth $329,000 after buying an additional 38 shares during the period. Fermata Advisors LLC boosted its position in shares of Snowflake by 4.9% during the third quarter. Fermata Advisors LLC now owns 893 shares of the company’s stock worth $303,000 after buying an additional 42 shares during the period. Parkside Financial Bank & Trust boosted its position in shares of Snowflake by 15.6% during the second quarter. Parkside Financial Bank & Trust now owns 334 shares of the company’s stock worth $85,000 after buying an additional 45 shares during the period. Finally, Tsfg LLC grew its holdings in Snowflake by 27.8% in the 2nd quarter. Tsfg LLC now owns 230 shares of the company’s stock worth $59,000 after buying an additional 50 shares in the last quarter. 65.10% of the stock is owned by institutional investors and hedge funds.
Snowflake Company Profile (Get Free Report)
Snowflake Inc is a cloud-based data platform company that helps organizations store, process, analyze and share data across public cloud environments. Its platform is designed to support data warehousing, data lakes, data engineering, data applications and analytics without requiring customers to manage the underlying hardware or software infrastructure.
Snowflake offers services for data sharing and collaboration, allowing organizations to securely exchange data with internal teams, customers, partners and third-party providers.
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First Citizens Bank & Trust Co. purchased a new position in shares of Snowflake Inc. (NYSE:SNOW – Free Report) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 4,606 shares of the company’s stock, valued at approximately $1,564,000.
Other hedge funds also recently made changes to their positions in the company. Basecamp Wealth Advisors LLC increased its position in Snowflake by 140.5% in the first quarter. Basecamp Wealth Advisors LLC now owns 202 shares of the company’s stock worth $30,000 after purchasing an additional 118 shares during the last quarter. Emerald Advisers LLC lifted its position in Snowflake by 95.2% during the first quarter. Emerald Advisers LLC now owns 205 shares of the company’s stock valued at $31,000 after purchasing an additional 100 shares during the last quarter. MV Capital Management Inc. bought a new position in Snowflake during the fourth quarter valued at $32,000. Copos Capital S.a r.l. bought a new position in Snowflake during the fourth quarter valued at $35,000. Finally, Global Assets Advisory LLC purchased a new position in shares of Snowflake in the 1st quarter worth $37,000. 65.10% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In A number of research firms have recently weighed in on SNOW. Oppenheimer boosted their target price on shares of Snowflake from $400.00 to $475.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Benchmark increased their price target on shares of Snowflake from $290.00 to $360.00 and gave the company a “buy” rating in a report on Tuesday, August 25th. Bank of America increased their price target on shares of Snowflake from $330.00 to $395.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Citigroup lifted their price target on Snowflake from $395.00 to $490.00 and gave the stock a “buy” rating in a research report on Thursday, September 3rd. Finally, Deutsche Bank Aktiengesellschaft set a $400.00 price objective on Snowflake in a research note on Thursday, September 3rd. Thirty-five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Snowflake has a consensus rating of “Moderate Buy” and a consensus target price of $414.24.
Check Out Our Latest Analysis on SNOW Insider Activity In other Snowflake news, EVP Christian Kleinerman sold 15,000 shares of the company’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $341.57, for a total value of $5,123,550.00. Following the transaction, the executive vice president owned 313,738 shares of the company’s stock, valued at $107,163,488.66. This represents a 4.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael L. Speiser sold 403 shares of the company’s stock in a transaction on Friday, October 2nd. The shares were sold at an average price of $344.00, for a total value of $138,632.00. Following the completion of the transaction, the director directly owned 21,767 shares in the company, valued at $7,487,848. This trade represents a 1.82% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,246,429 shares of company stock worth $396,227,952 in the last three months. Corporate insiders own 4.80% of the company’s stock.
Snowflake Price Performance SNOW stock opened at $335.81 on Friday. The stock has a market cap of $118.47 billion, a PE ratio of -105.60 and a beta of 1.35. Snowflake Inc. has a 12 month low of $118.30 and a 12 month high of $384.56. The company has a 50-day moving average price of $333.72 and a 200 day moving average price of $254.53. The company has a current ratio of 0.94, a quick ratio of 0.94 and a debt-to-equity ratio of 1.06.
Snowflake (NYSE:SNOW – Get Free Report) last posted its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 earnings per share for the quarter, topping analysts’ consensus estimates of $0.45 by $0.17. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. The company had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same period in the prior year, the company posted $0.35 EPS. The firm’s revenue for the quarter was up 35.1% on a year-over-year basis. Equities research analysts anticipate that Snowflake Inc. will post -1.44 earnings per share for the current year.
About Snowflake (Free Report)
Snowflake Inc (NYSE: SNOW) provides a cloud-based data platform that enables organizations to store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and artificial intelligence workloads in a single environment.
Snowflake’s services include cloud data storage and computing, data sharing and collaboration tools, governance and security capabilities, and access to third-party data through the Snowflake Marketplace.
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DENVER--(BUSINESS WIRE)--Today, Lumen Technologies (Nasdaq: LUMN) and Snowflake (NYSE: SNOW), the AI Data Cloud company, announced their intent to collaborate on helping enterprises simplify how they move, control, and secure data across modern enterprise environments. The companies look to combine Lumen's programmable networking capabilities with Snowflake's AI Data Cloud to help customers streamline how data is connected, governed, and activated across analytics, applications, and AI use case.
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- #IDC--Treasure AI, the agentic experience platform for enterprise brands, today announced its successful qualification by Snowflake, the AI Data Cloud company, as a Snowflake Ready Technology Validation partner. Achieving this validation confirms that Treasure AI's Snowflake integrations adhere to the platform's best practices around performance, reliability and security. “Enterprise brands have already built their customer data foundation inside Snowflake,” sa.
In the latest trading session, Snowflake Inc. (SNOW - Free Report) closed at $360.37, marking a -2.31% move from the previous day. This move lagged the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
Heading into today, shares of the company had gained 12.13% over the past month, outpacing the Computer and Technology sector's gain of 4.85% and the S&P 500's gain of 2.36%.
Market participants will be closely following the financial results of Snowflake Inc. in its upcoming release. The company is expected to report EPS of $0.6, up 71.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, up 36.11% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.21 per share and a revenue of $6.3 billion, representing changes of +76.8% and +34.53%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Snowflake Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.52% increase. Snowflake Inc. is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Snowflake Inc. is currently exchanging hands at a Forward P/E ratio of 167.03. This signifies a premium in comparison to the average Forward P/E of 20.96 for its industry.
It's also important to note that SNOW currently trades at a PEG ratio of 5.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SNOW's industry had an average PEG ratio of 1.21 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Pioneer Jeff Naughton, One of the Most Influential Database Scientists of This Generation, Joins Snowflake to Advance Data Systems for the Agentic Enterprise Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced that Jeff Naughton, one of the most influential database scientists of his generation, has joined the company as Technical Fellow.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20261012823431/en/
Award-winning database visionary joins Snowflake as Technical Fellow to bridge foundational research and enterprise AI
The rise of AI agents is placing entirely new demands on enterprise data infrastructure: systems must be faster, more adaptive, and built for workloads that are changing in real time. Naughton will work at the center of that challenge, partnering with Snowflake's engineering teams to translate decades of systems research into platform capabilities that keep pace with AI's advance.
"We are delighted to welcome Jeff to Snowflake. He helped write the playbook for how data systems scale, and I am thrilled he’s here to help us write the next one for AI," said S. "Murali" Muralidhar, Chief Technology Officer, Snowflake. "As AI demands fundamentally new things from data infrastructure, we couldn't ask for a better mind to help connect frontier research with the engineering that ships it. We're building something extraordinary at Snowflake, and Jeff's arrival makes that ambition unmistakable."
“I’m excited to join Snowflake because the caliber of engineering here is extraordinary," said Jeff Naughton. “The opportunity to strengthen the flow of ideas between academia and industry while helping build the next generation of data infrastructure is exactly why I’m here. I’ve spent my career at the intersection of database research and systems that ship. AI is now rewriting the fundamental assumptions behind both, making this a pivotal moment for the field and Snowflake is the right place to meet it.”
Naughton will work alongside Snowflake’s Anupam Datta, Principal Research Scientist and AI Research Lead, and Aditya Parameswaran, AI x Data Research Lead, to ensure that advances in AI research translate directly into platform capabilities Snowflake customers can use. He will also deepen Snowflake's connections to the academic research community and its role in the forums where the field's most important work is shaped.
"Few people have shaped the field of database systems the way Jeff has, both through his groundbreaking research and the generations of researchers he mentored at UW–Madison," said Remzi Arpaci-Dusseau, founding dean of the College of Computing & Artificial Intelligence at the University of Wisconsin–Madison. "Jeff's career reflects the powerful connections between academic research and industry innovation. We're excited to see him take on this new role at Snowflake and look forward to building on those connections through opportunities for research collaboration."
Naughton’s work on the Gamma team illustrates the connection between research and working systems. Developed at UW-Madison by David DeWitt, Gamma pioneered techniques for distributing data and executing queries across clusters of commodity computers using a shared-nothing architecture. Gamma received the 2008 ACM Software System Award. Naughton was named an ACM Fellow in 2002.
Most recently, Naughton served as Senior Vice President and Fellow at Celonis. Previously, he spent six years as a Distinguished Scientist at Google, where he worked on Google's scalable data management systems and also led its Madison engineering office. Before Google, he spent over two decades at UW-Madison, where he held the John P. Morgridge Professorship, following an earlier appointment as an Assistant Professor at Princeton University.
Learn More:
Explore Snowflake’s recent academic research publications.Stay on top of the latest news and announcements from Snowflake on LinkedIn and X.About Snowflake
Snowflake is the platform for the AI era, making it easy for enterprises to innovate faster and get more value from data. More than 14,500 customers around the globe, including hundreds of the world’s largest companies, use Snowflake’s AI Data Cloud to build, use and share data, applications and AI. With Snowflake, data and AI are transformative for everyone. Learn more at snowflake.com (NYSE: SNOW).
View source version on businesswire.com: https://www.businesswire.com/news/home/20261012823431/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
MENLO PARK, Calif.--(BUSINESS WIRE)--Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced that Jeff Naughton, one of the most influential database scientists of his generation, has joined the company as Technical Fellow. The rise of AI agents is placing entirely new demands on enterprise data infrastructure: systems must be faster, more adaptive, and built for workloads that are changing in real time. Naughton will work at the center of that challenge, partnering with Snowflake's.
Snowflake Inc. (SNOW - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned +12.1%, compared to the Zacks S&P 500 composite's +2.4% change. During this period, the Zacks Internet - Software industry, which Snowflake falls in, has gained 9.2%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Snowflake is expected to post earnings of $0.60 per share for the current quarter, representing a year-over-year change of +71.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $2.21 for the current fiscal year indicates a year-over-year change of +76.8%. This estimate has changed +2.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.86 indicates a change of +29.5% from what Snowflake is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Snowflake.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Snowflake, the consensus sales estimate for the current quarter of $1.65 billion indicates a year-over-year change of +36.1%. For the current and next fiscal years, $6.3 billion and $8.04 billion estimates indicate +34.5% and +27.6% changes, respectively.
Last Reported Results and Surprise HistorySnowflake reported revenues of $1.55 billion in the last reported quarter, representing a year-over-year change of +35.1%. EPS of $0.62 for the same period compares with $0.35 a year ago.
Compared to the Zacks Consensus Estimate of $1.47 billion, the reported revenues represent a surprise of +4.91%. The EPS surprise was +37.78%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Snowflake is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snowflake. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
What happened Snowflake Inc. (NYSE: SNOW) director Benoit Dageville sold 50,000 shares of common stock on 2026-10-07 at $333.42 each. The filing values that sale at about $16.67 million. It also reports a 16,668-share gift on the same date at $0. The filing records the sale under transaction code S and the gift under transaction code G. After the sale, Dageville held 2,384,879 shares. After the gift, Dageville held 2,368,211 shares.
The Form 4 says both trades were made under a Rule 10b5-1 trading plan adopted on April 3, 2026. The report identifies Dageville as a director and was signed on 2026-10-08.
Key numbers Metric Latest Change Source Shares sold 50,000 shares SEC Form 4 Price per share $333.42 SEC Form 4 Total sale value about $16.67 million SEC Form 4 Shares held after sale 2,384,879 shares SEC Form 4 Shares gifted 16,668 shares SEC Form 4 Shares held after gift 2,368,211 shares SEC Form 4 Read more: Snowflake (SNOW) stock analysis and investment case Why it matters OptimistFi's case is that Snowflake has to keep expanding usage while turning that into durable cash flow rather than perpetual GAAP losses. This Form 4 is mixed for that view, because it shows an insider reducing stock exposure while still keeping a very large position. It does not change the operating test. Snowflake still has to prove usage growth can turn into cash. The 50,000-share sale was about 2.1% of Dageville's pre-trade holding of 2,434,879 shares.
The trade leaves 2,384,879 shares after the sale, and the later gift line leaves 2,368,211 shares after the reported transactions. The prearranged Rule 10b5-1 plan weakens any claim that the filing itself signals a new view on Snowflake. It also means the filing should be read as a mechanical ownership update, not as a judgment on the business. For investors, the key point is that the director remains a substantial holder even after trimming and gifting shares.
That keeps the filing relevant, but only as a snapshot of ownership.
Browse: stock research on every company OptimistFi covers
What's next Snowflake's next quarterly report is the next scheduled check on the thesis. A report showing usage growth turning into stronger cash flow would strengthen OptimistFi's case. A report that still leaves GAAP losses and cash generation under pressure would leave this filing's signal mostly unchanged.
More from OptimistFi SNOW stock: the Snowflake thesis, its status and the next test to watch Dividendology Explains Hess Midstream LP (NYSE: HESM)'s EBITDA Reset Viatris Inc. (NASDAQ: VTRS) Buys Pacira for $1.65 Billion Richardson Electronics, Ltd. (NASDAQ: RELL) Margin Gains Need Context Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC Form 4 — Form 4 for Benoit Dageville, filed 2026-10-08. Read the full OptimistFi thesis on Snowflake Inc.: https://optimistfi.com/stocks/SNOW
See what would break the Snowflake Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.
Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.
The full Snowflake Inc. investment case, its status and the next test to watch live on the Snowflake Inc. thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
GE Vernova (GEV), the S&P 500 supplier of gas turbines and nuclear reactors, and data infrastructure play Snowflake (SNOW) lead this weekend's watchlist of five stocks near buy points. All five are enjoying a revenue growth acceleration as demand surges for AI-enabled capabilities and the technology and infrastructure that power them. For semiconductor packaging leader ASE Technology (ASX), that acceleration is brand new, showing up only in quarterly forecasts based on recently monthly updates.
Zebra Technologies (ZBRA), whose product tracking technology and machine vision cameras enable physical AI, and Xometry (XMTR), an AI-enabled marketplace for custom products that don't yet exist, round out the list.
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Big tech and major financials are about to kick off earnings season! On this episode, we preview key upcoming reports from Taiwan Semiconductor (TSM), ASML (ASML), and JPMorgan Chase (JPM), highlighting what investors need to watch regarding AI growth, capital expenditure plans and financial sector sentiment.
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IBD Stock Research
Snowflake is a new position of SwingTrader, which adapts the IBD Methodology to capitalize on short-term market trends. Check here for the newest additions to IBD stock lists.
Zebra has a superlative IBD Composite Rating of 99 out of a possible 99, according to IBD Stock Checkup. The single rating combines both fundamental and technical factors. SNOW and ASX have Composite Ratings of 98, while Xometry's is a still-excellent 95. GEV stock has a strong 84 Composite Rating, which partly reflects the drag from wind turbines that will quickly be forgotten as other segments surge.
MarketSurge shows that all the stocks on this weekend's watch list have reasonable 21-day average true range values, ranging from around 3% for ZBRA to 4% for GEV, ASX and SNOW to a still-moderate 5.25% for XMTR. Current market conditions are conducive for investors to keep the bulk of their portfolio in stocks with an ATR of up to 8%. Exposure to the higher-octane stocks more prone to shakeouts should be more limited.
S&P 500 Rally
The S&P 500 took a stride forward over the past week, setting a new record closing high on Tuesday and finishing the week up 1.15%.
The week ended with some encouraging action as markets got help from modest pullbacks in the 10-year Treasury yield and crude oil prices. How long that relief will last isn't clear amid fluid developments in the Middle East, but market conditions are providing investors an opening to ride the bull.
Investor's Business Daily is advising that investor trading funds can be 80% to 100% fully invested, but that's subject to change. Be sure to read IBD's The Big Picture column after each trading day to get the latest on the prevailing stock market trend and what it means for your trading decisions.
Futures: 6 Stocks Near Buy Points. Two Have Earnings Due.
GE Vernova
GE Vernova sales growth accelerated to 22% growth in Q2 from 16% in Q1 and last year's 9% pace. At a Sept. 16 Morgan Stanley conference, CEO Scott Strazik said the company's $176 billion backlog is likely headed to $200 billion very early in 2027 and signaled rising profit margins.
Beyond the equipment backlog, he added that GEV will cross the $100 billion mark in future contracted services revenue by the end of 2027.
GEV stock rose 1.6% to 1,004.73 last week, breaking clear of its 50-day moving average on Tuesday, which was the week's high-water mark. A move past Tuesday's intraday high of 1,052.78 would flash an early entry buy signal for aggressive investors.
GE Vernova's chart has the appearance of a double-bottom base with a 1,099.66 buy point.
Snowflake
Snowflake was featured as IBD Stock Of The Day on Friday as the stock broke out on the strength of new agentic AI products that are driving faster sales growth.
Sales growth accelerated to 35.1% in Q2 from 33.5%, 30.1% and 28.7% in the prior three quarters, FactSet data shows.
SNOW surged 7.4% to 368.89 on Friday. Shares tested the 10-week moving average earlier in the week and last week before jolting into gear with a move that began on Thursday.
Friday's move past recent resistance around 349 flashed a buying opportunity for aggressive investors. Shares have moved nearly 12% above the 50-day moving average, which suggests limiting additional exposure.
The SwingTrader portfolio seized on Friday's move to add a full position at 355.59, then booked a profit, selling one-fourth of its position at 367.57.
ASE Technology
Taiwan-based ASE Technology was featured in IBD's The New America on Oct. 2. The company is positioned to benefit from the increased importance of the packaging of integrated circuits as chip designers cram more capabilities into smaller spaces for faster performance. Packaging involves putting individual chips into protected houses and connecting them.
ASE Technology reported 19% sales growth in Q1 and 16.5% in Q2. However, FactSet shows forecasts for over 30% growth in Q3 and Q4. That follows the company's reports of 30.6% revenue growth in July and 41% in August.
ASX stock rose 2.6% to 46.43 on Friday, reclaiming a 45.52 buy point from a 12-week cup base.
Zebra Technologies
Zebra has been expanding beyond its bar-code and radio frequency identification, or RFID, with some fairly recent acquisitions. Its $1.3 billion cash acquisition of Elo Touch Solutions in August 2025 complimented Zebra's strengths with consumer-facing kiosks, payment and touch-screen systems. Zebra announced the acquisition of Photoneo, a manufacturer of 3D machine vision systems, in December 2024.
What physical AI and intelligent automation "ultimately require is accurate real-time information to help guide those systems," CFO Nathan Winters explained at a Sept. 9 Citi investor conference. "That's exactly what our portfolio of solutions performs today."
Photoneo machine vision can be "the eyes to a vision-guided robotic picker," he said. Elo, he said, provided an immediate boost to earnings and "has really been performing well."
Zebra revenue growth accelerated to 20% in Q2 from 14%, 11% and 5% in prior quarters. Price increases to recoup memory costs partly explain the faster growth.
ZBRA rose 1.3% to 387.18 on Friday to edge past a 386.23 buy point. The eight-week flat-base consolidation followed a big rally sparked by the Q2 earnings report on Aug. 4.
Xometry
Xometry was featured in The New America on Friday, which saw shares power up within a buy zone. Xometry's online marketplace connects around 90,000 manufacturers that need a new custom part produced to about 5,000 different suppliers.
Thanks to a decade of transactions and millions of files, the AI-enabled marketplace can determine a price for parts that have never been produced and connect manufacturers with the right supplier for the job.
In Q2, Xometry revenue growth accelerated to 41% from 36%, 29.5% and 27.5% in prior quarters.
XMTR stock began its big surge this year on May 7, on an earnings beat and news that Siemens will integrate Xometry's online tools within Designcenter, a computer-aided design system with millions of global users. Siemens also took a small equity stake in XMTR.
Xometry rose 4.3% to 111.07 on Friday, climbing within a buy range above a 106.08 buy point. The buy zone from a nine-week consolidation runs through 111.38.
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Snowflake stock SNOW rose 6% on Friday after the company introduced Agentic Marketplace Discovery in public preview, expanding its tools for AI-driven workflows as software stocks continued to rebound.
The feature allows users to find and compare relevant listings on Snowflake’s Marketplace by querying the company’s AI tool, CoCo.
It is available directly through the Marketplace Discover page in Snowsight, according to Snowflake’s official release notes.
The launch comes as investors assess whether growing demand for artificial intelligence will support software companies’ revenue growth and offset concerns that AI could disrupt traditional application software businesses.
Snowflake provides data infrastructure that businesses use to store, process, analyse and share information.
The company says AI is bringing new workloads onto its platform as enterprises seek governed data and business context to make AI applications useful.
The latest marketplace feature adds to Snowflake’s efforts to support AI-related workflows by helping users identify and compare listings through natural-language queries to CoCo.
The company’s recent financial results also point to stronger growth.
Snowflake generated $1.49 billion in product revenue in the second quarter of fiscal 2027, an increase of 37% from the same period a year earlier.
Product revenue growth has accelerated for three consecutive quarters.
Management attributed the increase to contributions from the core data platform and a meaningful step-up in AI revenue.
JPMorgan expects the recent recovery in software stocks to continue as third-quarter earnings provide more evidence of AI-related demand for infrastructure software and help ease concerns about disruption to application software.
The bank favours Microsoft, ServiceNow, Snowflake and Cloudflare heading into earnings season.
JPMorgan analyst Samik Chatterjee said application software shares could benefit from higher valuation multiples if company fundamentals prove more resilient than investors currently expect.
“We expect the broader recovery in the software sector index to continue, with upsides to Application Software company share prices more likely to be driven by re-rating of valuation multiples as fundamentals prove to be more resilient than priced in by low investor expectations on account of AI disruption threats,” Chatterjee said.
For infrastructure software companies, the analyst expects share-price gains to be supported by upward revisions to earnings estimates as AI demand contributes to revenue growth, despite already elevated valuations.
JPMorgan expects Snowflake to benefit from faster customer migrations and rising AI-related revenue.
The bank also expects Cloudflare’s revenue growth to accelerate into the high-30% range, supported by demand for security and network performance from AI-focused companies.
Snowflake has also received a more positive assessment from Citi. In September, analyst Tyler Radke raised his price target to $490 from $395 while maintaining a Buy rating.
Radke said Snowflake’s second-quarter fiscal 2027 results supported the “AI-driven flywheel thesis.”
Its latest marketplace launch adds another feature aimed at helping customers discover and use data-related offerings.
Meanwhile, its accelerating product revenue growth provides evidence of stronger demand for its platform.
Investors will be watching upcoming earnings for further indications of whether AI-related workloads can sustain growth across the software sector.
For Snowflake, the key factors highlighted by analysts include customer migrations, AI revenue, and continued demand for its core data platform.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Snowflake Inc. (SNOW - Free Report) .
Snowflake currently has an average brokerage recommendation (ABR) of 1.36, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 47 brokerage firms. An ABR of 1.36 approximates between Strong Buy and Buy.
Of the 47 recommendations that derive the current ABR, 38 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 80.9% and 6.4% of all recommendations.
Brokerage Recommendation Trends for SNOW
Check price target & stock forecast for Snowflake here>>>
The ABR suggests buying Snowflake, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in SNOW?Looking at the earnings estimate revisions for Snowflake, the Zacks Consensus Estimate for the current year has increased 2.5% over the past month to $2.21.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Snowflake. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Snowflake may serve as a useful guide for investors.
The data firm mentioned in the ASOS hacking message has said the breach was not caused by a flaw in its system.
Customers received a push notification on Tuesday, apparently addressed to the firm's IT managers, saying the "Snowflake" had been "fully compromised".
The fashion app said some personal data had been accessed, such as name and contact details, but that payment information and passwords were safe.
Snowflake - the American data storage business that services ASOS - said on Friday the hack was not its fault.
"We can confirm this issue did not in any way result from a vulnerability, weakness, flaw, or misconfiguration with the Snowflake service, platform, or internal environments, and was not caused by Snowflake," said a spokeswoman.
"No remediation is required for Snowflake customers. We continue to encourage adherence to our security best practices."
ASOS said on Thursday the incident was caused by an "unauthorised party gained access to an ASOS employee account by impersonating a trusted contact to obtain log-in credentials".
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It added: "Those credentials were then used to access information on certain third-party platforms used by ASOS.
"The affected platforms were immediately locked down, ensuring that no further information could be accessed and a full investigation was launched with the support of both internal and external cyber experts.
"We are also working with the relevant law enforcement and regulatory authorities."
The company - one of the best-known names in fast fashion - insisted its website and app remained safe and customers did not need to take any action.
However, it warned people to be "cautious of unexpected messages or calls claiming to be from ASOS".
"We will never ask you to share passwords, security codes or payment details through an unsolicited message or call," it added.
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It said customers would be contacted again when the full investigation is concluded and "additional steps" to improve security had already been implemented.
The firm's shares fell as much as 15% in the hours after the incident, but as of Friday morning had recovered slightly to stand 5.8% down over the last five days.
Toth Financial Advisory Corp purchased a new stake in Snowflake Inc. (NYSE:SNOW – Free Report) during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 2,200 shares of the company’s stock, valued at approximately $747,000.
Several other hedge funds have also recently bought and sold shares of SNOW. Congress Asset Management Co. boosted its stake in shares of Snowflake by 13.4% in the 3rd quarter. Congress Asset Management Co. now owns 35,643 shares of the company’s stock valued at $12,103,000 after purchasing an additional 4,223 shares in the last quarter. Polaris Financial Partners bought a new position in Snowflake during the 3rd quarter valued at about $51,000. Versant Capital Management Inc lifted its holdings in Snowflake by 104.4% during the 3rd quarter. Versant Capital Management Inc now owns 511 shares of the company’s stock valued at $174,000 after purchasing an additional 261 shares during the last quarter. Burkett Financial Services LLC acquired a new position in Snowflake in the third quarter valued at about $82,000. Finally, QRG Capital Management Inc. grew its stake in Snowflake by 67.9% during the second quarter. QRG Capital Management Inc. now owns 82,137 shares of the company’s stock worth $20,904,000 after buying an additional 33,218 shares during the last quarter. 65.10% of the stock is currently owned by institutional investors and hedge funds.
Insider Transactions at Snowflake In related news, Director Michael Speiser sold 50,338 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $324.06, for a total value of $16,312,532.28. Following the transaction, the director owned 26,036 shares in the company, valued at $8,437,226.16. This trade represents a 65.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Frank Slootman sold 289,685 shares of Snowflake stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $274.39, for a total value of $79,486,667.15. Following the completion of the sale, the director owned 28,535 shares of the company’s stock, valued at approximately $7,829,718.65. The trade was a 91.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 1,246,429 shares of company stock worth $396,227,952. 4.80% of the stock is owned by insiders.
Snowflake Stock Up 3.3% NYSE:SNOW opened at $343.90 on Friday. The stock’s fifty day moving average price is $329.72 and its two-hundred day moving average price is $247.89. Snowflake Inc. has a 52-week low of $118.30 and a 52-week high of $384.56. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94. The company has a market cap of $121.33 billion, a price-to-earnings ratio of -108.14 and a beta of 1.35. Snowflake (NYSE:SNOW – Get Free Report) last announced its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 EPS for the quarter, beating analysts’ consensus estimates of $0.45 by $0.17. The firm had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.48 billion. Snowflake had a negative return on equity of 46.32% and a negative net margin of 20.07%.The business’s quarterly revenue was up 35.1% compared to the same quarter last year. During the same period last year, the company earned $0.35 EPS. On average, analysts anticipate that Snowflake Inc. will post -1.46 EPS for the current year.
Wall Street Analysts Forecast Growth A number of research firms recently commented on SNOW. Canaccord Genuity Group increased their price target on Snowflake from $325.00 to $450.00 and gave the stock a “buy” rating in a research report on Thursday, September 3rd. Citizens Jmp lifted their price objective on Snowflake from $408.00 to $488.00 and gave the company a “market outperform” rating in a research report on Thursday, September 3rd. Wells Fargo & Company boosted their price objective on Snowflake from $500.00 to $525.00 and gave the stock an “overweight” rating in a research note on Thursday, September 3rd. Bank of America lifted their price target on Snowflake from $330.00 to $395.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Finally, Citigroup upped their price target on shares of Snowflake from $395.00 to $490.00 and gave the stock a “buy” rating in a research report on Thursday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $414.24.
Get Our Latest Analysis on Snowflake
Snowflake Profile (Free Report)
Snowflake Inc (NYSE: SNOW) provides a cloud-based data platform that enables organizations to store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and artificial intelligence workloads in a single environment.
Snowflake’s services include cloud data storage and computing, data sharing and collaboration tools, governance and security capabilities, and access to third-party data through the Snowflake Marketplace.
Featured Stories Five stocks we like better than Snowflake Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push Want to see what other hedge funds are holding SNOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Snowflake Inc. (NYSE:SNOW – Free Report).
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Venture Visionary Partners LLC trimmed its position in Snowflake Inc. (NYSE:SNOW – Free Report) by 26.9% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,677 shares of the company’s stock after selling 1,718 shares during the quarter. Venture Visionary Partners LLC’s holdings in Snowflake were worth $1,588,000 at the end of the most recent quarter.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Nuveen LLC lifted its holdings in Snowflake by 2.3% during the fourth quarter. Nuveen LLC now owns 5,277,851 shares of the company’s stock valued at $1,157,749,000 after purchasing an additional 116,521 shares in the last quarter. Janus Henderson Group PLC increased its stake in shares of Snowflake by 22.2% in the first quarter. Janus Henderson Group PLC now owns 2,997,385 shares of the company’s stock worth $452,014,000 after purchasing an additional 544,960 shares in the last quarter. Pictet Asset Management Holding SA raised its position in shares of Snowflake by 44.7% during the 1st quarter. Pictet Asset Management Holding SA now owns 2,600,571 shares of the company’s stock valued at $392,259,000 after purchasing an additional 803,110 shares during the period. Swedbank AB raised its position in shares of Snowflake by 24.0% during the 1st quarter. Swedbank AB now owns 1,649,771 shares of the company’s stock valued at $248,818,000 after purchasing an additional 319,356 shares during the period. Finally, Jericho Capital Asset Management L.P. purchased a new position in shares of Snowflake during the 4th quarter valued at $345,619,000. Institutional investors own 65.10% of the company’s stock.
Analysts Set New Price Targets Several research analysts recently weighed in on the stock. Monness Crespi & Hardt upped their target price on shares of Snowflake from $380.00 to $450.00 and gave the stock a “buy” rating in a report on Thursday, September 3rd. Needham & Company LLC raised their price target on Snowflake from $330.00 to $450.00 and gave the company a “buy” rating in a report on Thursday, September 3rd. Cantor Fitzgerald boosted their price objective on Snowflake from $405.00 to $430.00 and gave the company an “overweight” rating in a research report on Thursday, September 3rd. Canaccord Genuity Group upped their price objective on Snowflake from $325.00 to $450.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. Finally, Phillip Securities upgraded Snowflake to a “strong-buy” rating in a research report on Sunday, September 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $414.24.
Check Out Our Latest Research Report on SNOW Insider Transactions at Snowflake In related news, EVP Christian Kleinerman sold 25,000 shares of the business’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $325.00, for a total value of $8,125,000.00. Following the sale, the executive vice president directly owned 340,379 shares in the company, valued at approximately $110,623,175. The trade was a 6.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Garrett sold 50,000 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $350.00, for a total value of $17,500,000.00. Following the transaction, the director directly owned 10,074 shares of the company’s stock, valued at approximately $3,525,900. The trade was a 83.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 1,246,429 shares of company stock worth $396,227,952. 4.80% of the stock is currently owned by company insiders.
More Snowflake News Here are the key news stories impacting Snowflake this week:
Positive Sentiment: Snowflake’s shares have gained 34% over the past year, supported by surging AI adoption, 37% product-revenue growth and an increased fiscal 2027 outlook. The growth narrative strengthens the case for continued demand for Snowflake’s cloud data and AI platform, although the stock’s premium valuation raises the bar for future execution. Snowflake Stock Rallies 34% in a Year: Should You Buy, Sell, or Hold? Positive Sentiment: Wall Street’s average price target implies roughly 25.6% upside, and upward earnings-estimate revisions provide additional support for the bullish view. However, analysts’ targets are not guarantees and may already reflect much of Snowflake’s AI opportunity. Wall Street Analysts See a 25.64% Upside in Snowflake Neutral Sentiment: A senior Snowflake data-sharing and collaboration executive, Sanjay Srivastava, joined Bedrock Data as vice president of product. The move highlights competition for data-governance talent but does not, by itself, indicate a material change to Snowflake’s operations. Bedrock Data Names AWS and Snowflake Data Governance Veteran Negative Sentiment: Snowflake faced selling pressure after an unverified message distributed through ASOS’s mobile app claimed attackers had compromised the retailer’s Snowflake instance and threatened to release customer data. The claim has not been confirmed, but it revived concerns about customer security, reputational risk and potential liability. The broader coverage was largely focused on explaining Snowflake instances and the alleged incident rather than reporting a confirmed Snowflake breach. Snowflake Shares Fall After Unverified Breach Claim Appears in Asos App Snowflake Price Performance Shares of NYSE:SNOW opened at $333.61 on Thursday. The firm has a market cap of $117.70 billion, a price-to-earnings ratio of -104.91 and a beta of 1.35. The firm has a fifty day moving average price of $328.81 and a 200 day moving average price of $246.65. Snowflake Inc. has a fifty-two week low of $118.30 and a fifty-two week high of $384.56. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94.
Snowflake (NYSE:SNOW – Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.45 by $0.17. The company had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.48 billion. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. Snowflake’s revenue for the quarter was up 35.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.35 EPS. As a group, sell-side analysts expect that Snowflake Inc. will post -1.46 earnings per share for the current fiscal year.
Snowflake Company Profile (Free Report)
Snowflake Inc (NYSE: SNOW) provides a cloud-based data platform that enables organizations to store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and artificial intelligence workloads in a single environment.
Snowflake’s services include cloud data storage and computing, data sharing and collaboration tools, governance and security capabilities, and access to third-party data through the Snowflake Marketplace.
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Shares of Snowflake Inc. (SNOW - Free Report) have gained 0.5% over the past four weeks to close the last trading session at $338.99, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $425.91 indicates a potential upside of 25.6%.
The mean estimate comprises 45 short-term price targets with a standard deviation of $68.24. While the lowest estimate of $110.00 indicates a 67.6% decline from the current price level, the most optimistic analyst expects the stock to surge 54.9% to reach $525.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for SNOW, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in SNOWThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 2.5%.
Moreover, SNOW currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SNOW could gain, the direction of price movement it implies does appear to be a good guide.
No-Headquarters/BOZEMAN, Mont.--(BUSINESS WIRE)-- #SnowflakeExpedition--Snowflake (NYSE: SNOW), the AI Data Cloud company, today announced that it will host Snowflake Expedition 2026, its flagship virtual global event streaming Nov. 3-5, 2026 in the Americas and Nov. 4-6, 2026 across global regions. The event's Day One Luminary fireside chat will feature a conversation between Snowflake CEO Sridhar Ramaswamy and Microsoft Chairman and CEO Satya Nadella, exploring how enterprises can bridge the gap between AI experime.
What happened Snowflake Inc. (NYSE: SNOW) EVP, Product Management Christian Kleinerman sold 15,000 shares on 2026-10-01 at $341.57 apiece for about $5.12 million.
After the sale, Kleinerman held 313,738 shares, and the filing says the trade was made under a Rule 10b5-1 trading plan adopted on December 26, 2025.
The form also lists indirect common-stock holdings through Kleinerman 2020 Dynasty LLC, Kleinerman 2020 Nonexempt LLC, and the Christian Kleinerman 2024, 2025 and 2026 Grantor Retained Annuity Trusts. It shows 18,568 indirect shares in Kleinerman 2020 Dynasty LLC and 11,238 in Kleinerman 2020 Nonexempt LLC. The filing was submitted on 2026-10-02, and Table II reported no derivative securities. Kleinerman is identified as an officer, not a director or 10% owner. The shares were common stock. Key numbers Metric Latest Change Source Shares sold 15,000 shares SEC Form 4 Sale price $341.57 SEC Form 4 Total value about $5.12 million SEC Form 4 Shares held after sale 313,738 shares SEC Form 4 Read more: Snowflake (SNOW) stock analysis and investment case
Why it matters OptimistFi's case is that Snowflake works if it remains the cloud data-and-AI platform customers expand usage on, while proving that consumption growth can become durable cash flow rather than GAAP losses.
This filing is mixed for that view.
The 15,000-share sale was about 4.6% of the 328,738 shares held before the trade, and Kleinerman still held 313,738 shares afterward.
The post-sale position leaves Kleinerman with continued exposure to Snowflake's stock price.
That size makes the sale notable, but the Rule 10b5-1 language keeps the signal muted.
The strongest caveat is that the filing says the sale followed a Rule 10b5-1 trading plan adopted on December 26, 2025, so it can read as a preplanned liquidity event.
That leaves the ownership signal mixed, not decisive.
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What's next Snowflake's next quarterly report is the next scheduled test of whether usage growth keeps translating into cash flow.
A report that shows that pattern continuing would strengthen the case.
A report that shows slower usage growth or weaker cash flow would weaken it.
That report is the clearest future check the filing points to.
That report comes next.
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See what would break the Snowflake Inc. thesis and track it live on the OptimistFi Thesis-Break Engine.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
A month has gone by since the last earnings report for Snowflake Inc. (SNOW - Free Report) . Shares have lost about 4.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Snowflake due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Snowflake Q2 Earnings Beat on Product Revenues and AI StrengthSnowflake reported second-quarter fiscal 2027 non-GAAP earnings of 62 cents per share, up 77.1% year over year and surpassed the Zacks Consensus Estimate by 37.78%.
Revenues of $1.55 billion increased 35.1% and beat the consensus mark by 4.91%. Growth was driven by strength in the core data platform and a meaningful step-up in AI revenue.
SNOW Top-line DetailsSNOW’s fiscal second-quarter performance was driven by consumption across its core platform, with product revenues representing the majority of results. Product revenues rose 37% to $1.49 billion and accounted for 96% of total revenues in the fiscal second quarter. Professional services and other revenues were $54.9 million, representing the remaining 4% of revenues and increasing 0.8% year over year.
Geographically, the Americas contributed 77% of revenues, while EMEA accounted for 17% and APJ contributed 6%. Management said that product revenue growth accelerated for the third consecutive quarter, supported by the core data platform and AI demand.
Snowflake’s AI Products Broaden Platform UsageCoCo surpassed 9,100 accounts, adding more than 2,000 during the quarter. CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Management said that AI products, including CoCo, CoWork, AI functions and AI Gateway, contributed roughly half of the acceleration in growth.
Snowflake launched more than 330 product capabilities to general availability in the first half of fiscal 2027, up 35% year over year. New offerings included Cortex Sense and Cortex AI Gateway, which integrates Natoma to extend AI from insight to action.
Customer use cases deployed on the platform increased 89% year over year, while use cases won per account executive rose 43%. Management also said that accounts using CoCo consumed more of the core platform, while gross retention remained relatively flat across recent quarters.
SNOW Expands Customer Scale and CommitmentsSNOW ended the quarter with 14,554 total customers after adding 692 net new customers, a 32% year-over-year increase in net additions. The company added 14 Forbes Global 2000 customers, taking that total to 829.
Large-customer momentum remained strong, with 828 customers generating more than $1 million in trailing 12-month product revenues, up 27% year over year. Another 65 customers exceeded $10 million in trailing product revenues.
Retention remained a key support for the consumption model. Net revenue retention rate was 126%, reflecting healthy expansion within the existing customer base.
Contracted demand also remained solid, with remaining performance obligations (RPO) of $9.00 billion, up 30% year over year. Snowflake expects roughly 54% of RPO to be recognized as revenue over the next 12 months. As of July 31, 43% of customers had at least one stable data-sharing edge, while Marketplace listings reached 4,105, up 21%.
Snowflake’s Expense Discipline Lifts Operating MarginThe non-GAAP gross margin contracted 120 basis points (bps) year over year to 71.8%. Non-GAAP product gross margin was 74.7%.
Non-GAAP sales and marketing expense represented 32% of revenues, down from 34% a year ago, while research and development fell to 20% from 22%, and general and administrative expense declined to 5% from 6%.
Non-GAAP operating income reached $237.0 million, producing a 15.3% operating margin. The year-ago non-GAAP operating margin was 11.1%. Management attributed the improvement to strong revenue growth and disciplined headcount management.
Year to date, Snowflake added 334 employees, including 173 from Observe, compared with 935 additions in the year-ago period.
SNOW’s Cash Flow and Liquidity DetailsAs of July 31, 2026, cash, cash equivalents, and short- and long-term investments were $4.3 billion compared with $4.39 billion as of April 30.
In the reported quarter, net cash provided by operating activities was $91.4 million. Free cash flow totaled $83.8 million, while adjusted free cash flow was $92.3 million.
For the first six months of fiscal 2027, operating cash flow increased to $334.6 million from $303.3 million a year earlier, while adjusted free cash flow rose to $357.8 million from $274.0 million.
Snowflake Raises Fiscal 2027 Product Revenue OutlookFor the third quarter of fiscal 2027, Snowflake expects product revenues between $1.588 billion and $1.593 billion, implying 37% to 38% year-over-year growth. The company expects a non-GAAP operating margin of 15.5%.
For fiscal 2027, product revenues are projected to be $6.07 billion, representing 36% growth, up from the prior guidance of $5.84 billion and 31% growth. Snowflake also raised its non-GAAP operating margin outlook to 14.5% from 13.5%, expects a 74% non-GAAP product gross margin, and reiterated a 23% adjusted free cash flow margin.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 26.29% due to these changes.
VGM ScoresAt this time, Snowflake has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Snowflake has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerSnowflake is part of the Zacks Internet - Software industry. Over the past month, GitLab Inc. (GTLB - Free Report) , a stock from the same industry, has gained 1.3%. The company reported its results for the quarter ended July 2026 more than a month ago.
Gitlab reported revenues of $286.25 million in the last reported quarter, representing a year-over-year change of +21.3%. EPS of $0.24 for the same period compares with $0.24 a year ago.
For the current quarter, Gitlab is expected to post earnings of $0.20 per share, indicating a change of -20% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Gitlab. Also, the stock has a VGM Score of F.
Snowflake Inc. (SNOW - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned -1% over the past month versus the Zacks S&P 500 composite's +1% change. The Zacks Internet - Software industry, to which Snowflake belongs, has gained 6.3% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Snowflake is expected to post earnings of $0.60 per share, indicating a change of +71.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +26.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.2 points to a change of +76% from the prior year. Over the last 30 days, this estimate has changed +19.3%.
For the next fiscal year, the consensus earnings estimate of $2.87 indicates a change of +30.4% from what Snowflake is expected to report a year ago. Over the past month, the estimate has changed +9.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Snowflake is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Snowflake, the consensus sales estimate for the current quarter of $1.65 billion indicates a year-over-year change of +36.1%. For the current and next fiscal years, $6.3 billion and $8.04 billion estimates indicate +34.5% and +27.6% changes, respectively.
Last Reported Results and Surprise HistorySnowflake reported revenues of $1.55 billion in the last reported quarter, representing a year-over-year change of +35.1%. EPS of $0.62 for the same period compares with $0.35 a year ago.
Compared to the Zacks Consensus Estimate of $1.47 billion, the reported revenues represent a surprise of +4.91%. The EPS surprise was +37.78%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Snowflake is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snowflake. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Snowflake Inc. (NYSE: SNOW) (âSnowflakeâ), the AI Data Cloud Company, today announced the pricing of $2.0 billion aggregate principal amount of its 0.00% Co
MENLO PARK, Calif.--(BUSINESS WIRE)--Snowflake Inc. (NYSE: SNOW) (“Snowflake”), the AI Data Cloud Company, today announced the pricing of $2.0 billion aggregate principal amount of its 0.00% Convertible Senior Notes due 2029 (the “2029 notes”) and $1.75 billion aggregate principal amount of its 0.00% Convertible Senior Notes due 2031 (the “2031 notes,” and together with the 2029 notes, the “notes”) in a private placement (the “offering”) to persons reasonably believed to be qualified institutio.
Snowflake's massive convertible note proposal is rattling cloud stocks across the board, but the deal's unusual structure raises a question worth answering before assuming the worst about dilution.
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A $3.5 billion convertible note plan from Snowflake (NYSE:SNOW | SNOW Price Prediction) weighs on Snowflake stock. Even so, the data cloud company structured the deal specifically to limit the dilution sellers appear to be pricing in. Snowflake stock is at $321.65, down 4%, but still up 47.59% year to date.
Selling is spreading across other highly valued cloud names that have no offering of their own. Oracle (NYSE:ORCL) stock trades at $132.45, down 3%, which places the database giant inside the same pullback. Similarly, Datadog (NASDAQ:DDOG) stock is at $257.85, down 4%, a drop roughly as steep as Snowflake’s slide.
The First Trust Cloud Computing ETF (NASDAQ:SKYY) is slipping 0.9%, a far softer decline than any of those three stocks. Large-cap tech is holding up slightly better, with the Invesco QQQ Trust (NASDAQ:QQQ) down 0.8%. That spread points to selling concentrated in high-multiple cloud names, with Snowflake’s financing news adding a company-specific push.
Convertible Notes Designed to Cap Dilution Under the proposal, Snowflake intends to offer the convertible senior notes in a private placement to qualified institutional buyers, subject to market conditions. The offering from Snowflake comes in two tranches maturing later this decade, and the notes carry no regular interest.
Snowflake expects to use its net proceeds for capped call transactions. It will also buy back a portion of its existing convertible notes and allocate funds for general corporate purposes, which may include share buybacks and acquisitions or strategic investments. Those capped calls are privately negotiated and are generally expected to reduce potential dilution to Snowflake common stock when the notes convert, subject to a ceiling.
Weighing Dilution Against Balance Sheet Strength Dilution risk is the first worry for Snowflake bears, since a convertible offering expands the potential share count. Convertible arbitrage desks also routinely short Snowflake stock while buying the notes, which adds mechanical selling pressure. That overhang lands on a company already leaning heavily on equity pay, with Snowflake recording $456 million in stock-based compensation in its most recent quarter.
A more constructive read on Snowflake centers on the deal’s structure. Notes that carry no regular interest push Snowflake’s existing maturities further out and leave the company with cash for buybacks and acquisitions, so its balance sheet could end up stronger than it started. Snowflake has already shown an appetite for returning capital, buy back $300 million of common stock during the six months ended July 31.
Operating momentum at Snowflake gives that view some weight. During the second quarter of fiscal 2027, the company grew its sales 35.1% year over year to $1.55 billion and lifted its full-year product revenue guidance to $6.07 billion. However, Snowflake still posted a net loss of $191.72 million for the period, which helps explain why fresh convertible paper draws scrutiny.
Cloud Peers Sink in Sympathy Oracle and Datadog shares are falling hard even without company financing news, which frames Snowflake’s decline as one piece of a wider cloud pullback. These cloud infrastructure names belong to the same cohort. Their valuations lean heavily on growth expectations (riding a high-multiple move is fine as long as the exit is planned, and our free handbook covers both sides: here).
Datadog stock is still up 95.47% year to date, so the pullback cuts a large gain for one of the group’s strongest performers. By contrast, Oracle stock is down 31.46% year to date, and the latest drop compounds an already rough stretch.
Snowflake stands apart as the only one of the three with a company-specific financing catalyst, and convertible hedging can amplify moves in Snowflake shares, so that mix of sector drag and deal-related hedging could keep Snowflake stock more volatile than its cloud peers until the deal is finalized.
Balancing Risk and Opportunity in Snowflake Investors may want to keep an eye on Snowflake stock once the offering prices, since the final terms and the capped call ceiling shape how much hedging pressure remains. Snowflake’s liquidity also matters, and the company finished the period with $4.3 billion in cash and investments.
Given the offering overhang, anyone considering Snowflake should keep their position moderate and add to it gradually. Shareholders who already own SNOW stock should weigh their exposure to other cloud names too, since Oracle and Datadog are slipping alongside Snowflake. Pairing their Snowflake stake with their broader cloud exposure through the First Trust Cloud Computing ETF could cushion the hit from single-company financing news.
Traders could watch for signs that Oracle and Datadog stock stabilize, since a firmer peer group could help separate Snowflake’s deal-driven selling from the wider cloud drag. Solid growth gives Snowflake’s bull case real ground, and the final pricing of the offering could shape the next leg for SNOW stock.
Contact [email protected] for any questions or corrections.
Snowflake Inc (NYSE:SNOW) plans to offer $3.5 billion of convertible senior notes alongside planned transactions to reduce potential dilution.
The company said Monday its planned private placement to qualified institutional buyers comprises $1.3 billion of notes due in 2029 and $2.2 billion due in 2031.
Initial purchasers will receive options to buy up to an additional $200 million of the 2029 notes and up to $300 million of the 2031 notes.
Both series will bear no regular interest, and their principal amounts will not accrete, Snowflake said.
Snowflake plans to use part of the proceeds for capped-call transactions designed to reduce potential dilution from conversion of the new notes.
The company also expects to use proceeds to repurchase a portion of its outstanding 0% convertible senior notes due in 2027 and for general corporate purposes.
The initial conversion rate and other terms of each series will be determined when the company prices the offering.
Shares of Snowflake were down around 2.8% on Monday morning in New York.
MENLO PARK, Calif.--(BUSINESS WIRE)--Snowflake Inc. (NYSE: SNOW) (“Snowflake”), the AI Data Cloud Company, today announced that it intends to offer, subject to market conditions and other factors, $1.3 billion aggregate principal amount of its 0.00% Convertible Senior Notes due 2029 (the “2029 notes”) and $2.2 billion aggregate principal amount of its 0.00% Convertible Senior Notes due 2031 (the “2031 notes,” and together with the 2029 notes, the “notes”) in a private placement (the “offering”).
Snowflake Inc. (NYSE: SNOW) (âSnowflakeâ), the AI Data Cloud Company, today announced that it intends to offer, subject to market conditions and other facto
Oracle is selling off hard while the cloud sector barely flinches, and its own AI infrastructure rivals are sitting nearly flat. Something specific is hitting this stock, and the capital math behind Oracle's record growth tells a complicated story.
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Oracle (NYSE:ORCL | ORCL Price Prediction) stock is down 6% to $136.73 in morning trading, a sharp move that has the company decoupling from the rest of the cloud complex. Meanwhile, CoreWeave (NASDAQ:CRWV) stock is practically unchanged at $86.85 in morning trading, a striking calm given how often CoreWeave and Oracle get grouped together as artificial intelligence (AI) cloud infrastructure plays. Snowflake (NYSE:SNOW) stock is down 1% to $331.23, a modest slip that keeps it far from Oracle’s larger loss. Both peers frame Oracle’s session as a company-level repricing.
The First Trust Cloud Computing ETF (NASDAQ:SKYY) is practically unchanged at $167.54 in morning trading, telling investors the cloud group as a whole is holding its ground. The Invesco QQQ Trust (NASDAQ:QQQ) is down 0.86% to $734.82, a notable but relatively mild pullback in large-cap tech that stops well short of Oracle’s move. Against both benchmarks, Oracle stands apart.
Oracle Stock Moves Apart From Its Sector That read is straightforward. The cloud fund is flat and the broad tech benchmark shows only a mild pullback, which leaves the sector backdrop intact for the session. Oracle is producing this loss on its own, and the size of the gap between Oracle and the cloud fund is what makes today unusual.
Snowflake and CoreWeave both sit close to flat, and that comparison is the tell. Both compete in adjacent corners of the cloud and AI infrastructure market that Oracle has been chasing hardest through its Oracle Cloud Infrastructure buildout. Their calm sessions frame Oracle’s decline as a company-level repricing.
The setup also cuts against the reflex that says a big cloud name selling off signals rotation. Rotation would show up as broad weakness across CoreWeave, Snowflake and other cloud infrastructure names, and the SKYY tape shows none of that. That leaves Oracle as the story on its own terms today.
Putting Oracle Stock’s Move in Perspective Oracle stock is down 29% year to date (YTD), so today’s drop extends a slide that has been running all year rather than opening a new one. The company recently reported Q1 FY2027 revenue up 29.6% year over year (YoY), with cloud infrastructure growth of 121% and more than $30 billion of new AI contracts booked in the quarter. Yet, the stock has kept sliding.
The friction between the growth story and the price action sits in the capital math. Oracle reported capital expenditures of $28.499 billion in the quarter against negative free cash flow of $5.396 billion, with interest expense up 55% to $1.4 billion. Investors have been weighing that build-out against the pace at which it converts into cash, and the answer keeps coming back skeptical.
Some of that picture is offset by cash generation few software companies could match. The company reported operating cash flow of $23.103 billion in the quarter, and GPU utilization sat at 97.9%, so the hardware Oracle is buying is being put to work at close to full capacity. The gap between the operating engine and the free cash line is what keeps the debate on Oracle live.
What to Watch Next Oracle’s earnings report set a full-year target of at least $90 billion in revenue and $8.10 in non-GAAP EPS. Oracle’s $664 billion in remaining performance obligations is the figure that has to convert into billed revenue for the bull case on Oracle to hold. Traders may want to keep an eye on the stock through the close, since a session move this large without a named driver often sets up either a bounce or a follow-through in the next day.
Investors sizing their exposure to Oracle stock should weigh the split personality of this name. The bull case rests on unmatched cloud growth, a booked backlog few peers can match, and a data center delivery pace that already produced 850 megawatts of AI capacity in a single quarter. The bear case rests on capital intensity, negative cash flow and a share price that has punished the story all year.
That contrast is why a modest allocation in Oracle stock makes sense here. Holders get exposure to the AI cloud growth narrative that Oracle has more of than almost any incumbent, while capping their downside to a stock the tape has kept re-rating lower month after month. The Q2 FY2027 numbers, due later in the fiscal year, will offer the next hard checkpoint on whether Oracle’s growth continues to outrun its capital burden.
Contact [email protected] for any questions or corrections.
Snowflake Inc. (SNOW - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Snowflake is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Snowflake imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for SnowflakeFor the fiscal year ending January 2027, this company is expected to earn $2.19 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Snowflake. Over the past three months, the Zacks Consensus Estimate for the company has increased 14.5%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Snowflake to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Snowflake Inc. (SNOW - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Snowflake currently has an average brokerage recommendation (ABR) of 1.37, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 46 brokerage firms. An ABR of 1.37 approximates between Strong Buy and Buy.
Of the 46 recommendations that derive the current ABR, 37 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 80.4% and 6.5% of all recommendations.
Brokerage Recommendation Trends for SNOW
Check price target & stock forecast for Snowflake here>>>
The ABR suggests buying Snowflake, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is SNOW Worth Investing In?In terms of earnings estimate revisions for Snowflake, the Zacks Consensus Estimate for the current year has increased 13.5% over the past month to $2.19.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Snowflake. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Snowflake may serve as a useful guide for investors.
Snowflake Inc. (NYSE:SNOW – Get Free Report) Director Frank Slootman sold 102,791 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $335.22, for a total value of $34,457,599.02. Following the completion of the sale, the director owned 19,024 shares of the company’s stock, valued at approximately $6,377,225.28. This trade represents a 84.38% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Frank Slootman also recently made the following trade(s):
On Friday, September 18th, Frank Slootman sold 197,209 shares of Snowflake stock. The stock was sold at an average price of $334.10, for a total value of $65,887,526.90. On Wednesday, September 16th, Frank Slootman sold 8,191 shares of Snowflake stock. The shares were sold at an average price of $318.51, for a total transaction of $2,608,915.41. On Wednesday, August 19th, Frank Slootman sold 48,990 shares of Snowflake stock. The stock was sold at an average price of $320.78, for a total transaction of $15,715,012.20. On Tuesday, August 18th, Frank Slootman sold 251,010 shares of Snowflake stock. The shares were sold at an average price of $325.53, for a total transaction of $81,711,285.30. On Tuesday, July 21st, Frank Slootman sold 10,315 shares of Snowflake stock. The shares were sold at an average price of $275.10, for a total transaction of $2,837,656.50. On Monday, July 20th, Frank Slootman sold 289,685 shares of Snowflake stock. The stock was sold at an average price of $274.39, for a total transaction of $79,486,667.15. On Monday, June 29th, Frank Slootman sold 99,900 shares of Snowflake stock. The stock was sold at an average price of $251.73, for a total transaction of $25,147,827.00. On Friday, June 26th, Frank Slootman sold 100 shares of Snowflake stock. The shares were sold at an average price of $250.00, for a total transaction of $25,000.00. Snowflake Stock Down 1.0% Shares of Snowflake stock opened at $336.14 on Wednesday. The business has a 50-day moving average of $314.56 and a 200-day moving average of $234.34. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.94 and a quick ratio of 0.94. The company has a market capitalization of $118.59 billion, a PE ratio of -105.70 and a beta of 1.33. Snowflake Inc. has a 1-year low of $118.30 and a 1-year high of $384.56.
Snowflake (NYSE:SNOW – Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.45 by $0.17. The business had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.48 billion. Snowflake had a negative return on equity of 46.32% and a negative net margin of 20.07%.The company’s revenue was up 35.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.35 earnings per share. As a group, equities analysts forecast that Snowflake Inc. will post -1.57 EPS for the current fiscal year. Key Stories Impacting Snowflake Here are the key news stories impacting Snowflake this week:
Positive Sentiment: Jim Cramer said Snowflake has “caught fire in recent months” after meeting with the company, reinforcing the bullish view that its data platform is benefiting from increased enterprise software and AI demand. Jim Cramer Notes Snowflake Positive Sentiment: A recent investment analysis argued that Snowflake’s recovery and long-term growth potential may still justify further upside, citing a roughly $425 Street target compared with a current price near $332. This is an analyst-style opinion rather than new company guidance. Snowflake Stock Is Up 45 Percent in a Year Neutral Sentiment: Former Snowflake CFO Mike Scarpelli joined ClickHouse’s board as that company’s run-rate revenue surpassed $350 million. The appointment highlights competition in the data-platform market but does not directly change Snowflake’s fundamentals. ClickHouse Appoints Mike Scarpelli Negative Sentiment: Director Frank Slootman sold a combined 300,000 shares for approximately $100.3 million across September 18 and 21, reducing his direct ownership by more than 84% to 19,024 shares. Although the sales were made under a pre-arranged trading plan, their size may encourage profit-taking concerns. SEC insider transaction filing Negative Sentiment: Executive Vice President Christian Kleinerman sold 2,622 shares worth about $903,000 to cover tax withholding tied to vested equity awards. Because the transaction was tax-related and represented only a 0.79% reduction in his holdings, it is a relatively weak bearish signal. SEC insider transaction filing Negative Sentiment: A report describes an autonomous AI security agent identifying and exploiting a vulnerability in Snowflake’s GitHub repository. The potential security and reputational implications may concern investors, though the report does not indicate a customer-data breach or operational disruption. Snowflake GitHub vulnerability report Wall Street Analysts Forecast Growth A number of brokerages recently issued reports on SNOW. Truist Financial set a $425.00 price target on shares of Snowflake and gave the stock a “buy” rating in a research note on Thursday, September 3rd. Deutsche Bank Aktiengesellschaft set a $400.00 target price on shares of Snowflake in a research note on Thursday, September 3rd. Mizuho set a $425.00 price target on Snowflake in a research note on Thursday, September 3rd. KeyCorp boosted their price objective on Snowflake from $285.00 to $325.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. Finally, Bank of America increased their target price on Snowflake from $330.00 to $395.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Thirty-four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $414.24.
Get Our Latest Stock Report on Snowflake
Institutional Inflows and Outflows A number of institutional investors have recently added to or reduced their stakes in the stock. Silicon Valley Capital Partners lifted its stake in Snowflake by 15.2% in the second quarter. Silicon Valley Capital Partners now owns 62,087 shares of the company’s stock valued at $15,801,000 after buying an additional 8,208 shares during the last quarter. Wellington Altus USA Inc. bought a new position in shares of Snowflake during the second quarter worth about $102,000. Anchor Investment Management LLC acquired a new stake in shares of Snowflake in the 2nd quarter worth about $76,000. Sequoia Financial Advisors LLC increased its holdings in shares of Snowflake by 14.2% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 39,598 shares of the company’s stock worth $10,078,000 after acquiring an additional 4,927 shares during the period. Finally, MCF Advisors LLC lifted its position in Snowflake by 1,557.9% in the 2nd quarter. MCF Advisors LLC now owns 315 shares of the company’s stock valued at $80,000 after purchasing an additional 296 shares during the last quarter. 65.10% of the stock is currently owned by institutional investors.
Snowflake Company Profile (Get Free Report)
Snowflake Inc (NYSE: SNOW) is a cloud-based data platform company that helps organizations store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and business intelligence across public cloud environments.
Snowflake’s Data Cloud enables customers to consolidate and access structured, semi-structured and unstructured data while supporting secure data sharing and collaboration. Its offerings include Snowflake Cortex, which provides artificial intelligence and machine-learning capabilities, as well as tools for developing data applications and using data from Snowflake’s marketplace and partner ecosystem.
Founded in 2012, Snowflake serves businesses, government organizations and other institutions globally through cloud infrastructure provided by major public-cloud platforms.
See Also Five stocks we like better than Snowflake Meta’s Muse Highlights Arm’s Growing Role in AI Infrastructure Oura’s $15.6 Billion IPO Is Betting Investors See More Than a Smart Ring AMD Chips Away at NVIDIA’s AI Throne Is the Fed Playing Chess With Rates—Or Just Behind the Curve Again?
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Snowflake Inc. (NYSE:SNOW – Get Free Report) Director Frank Slootman sold 197,209 shares of the firm’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $334.10, for a total transaction of $65,887,526.90. Following the transaction, the director directly owned 19,024 shares of the company’s stock, valued at $6,355,918.40. The trade was a 91.20% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Frank Slootman also recently made the following trade(s):
On Monday, September 21st, Frank Slootman sold 102,791 shares of Snowflake stock. The stock was sold at an average price of $335.22, for a total transaction of $34,457,599.02. On Wednesday, September 16th, Frank Slootman sold 8,191 shares of Snowflake stock. The shares were sold at an average price of $318.51, for a total value of $2,608,915.41. On Wednesday, August 19th, Frank Slootman sold 48,990 shares of Snowflake stock. The stock was sold at an average price of $320.78, for a total value of $15,715,012.20. On Tuesday, August 18th, Frank Slootman sold 251,010 shares of Snowflake stock. The stock was sold at an average price of $325.53, for a total value of $81,711,285.30. On Tuesday, July 21st, Frank Slootman sold 10,315 shares of Snowflake stock. The shares were sold at an average price of $275.10, for a total value of $2,837,656.50. On Monday, July 20th, Frank Slootman sold 289,685 shares of Snowflake stock. The shares were sold at an average price of $274.39, for a total value of $79,486,667.15. On Monday, June 29th, Frank Slootman sold 99,900 shares of Snowflake stock. The stock was sold at an average price of $251.73, for a total value of $25,147,827.00. On Friday, June 26th, Frank Slootman sold 100 shares of Snowflake stock. The stock was sold at an average price of $250.00, for a total value of $25,000.00. Snowflake Stock Performance Shares of SNOW stock opened at $336.14 on Wednesday. The stock has a market capitalization of $118.59 billion, a PE ratio of -105.70 and a beta of 1.33. The business’s 50 day simple moving average is $314.56 and its 200 day simple moving average is $234.34. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.94 and a quick ratio of 0.94. Snowflake Inc. has a one year low of $118.30 and a one year high of $384.56.
Snowflake (NYSE:SNOW – Get Free Report) last released its quarterly earnings results on Wednesday, September 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.17. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. The firm had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.48 billion. During the same quarter last year, the business earned $0.35 EPS. The company’s revenue was up 35.1% compared to the same quarter last year. As a group, research analysts forecast that Snowflake Inc. will post -1.57 earnings per share for the current year. Snowflake News Roundup Here are the key news stories impacting Snowflake this week:
Positive Sentiment: Jim Cramer said Snowflake has “caught fire in recent months” after meeting with the company, reinforcing the bullish view that its data platform is benefiting from increased enterprise software and AI demand. Jim Cramer Notes Snowflake Positive Sentiment: A recent investment analysis argued that Snowflake’s recovery and long-term growth potential may still justify further upside, citing a roughly $425 Street target compared with a current price near $332. This is an analyst-style opinion rather than new company guidance. Snowflake Stock Is Up 45 Percent in a Year Neutral Sentiment: Former Snowflake CFO Mike Scarpelli joined ClickHouse’s board as that company’s run-rate revenue surpassed $350 million. The appointment highlights competition in the data-platform market but does not directly change Snowflake’s fundamentals. ClickHouse Appoints Mike Scarpelli Negative Sentiment: Director Frank Slootman sold a combined 300,000 shares for approximately $100.3 million across September 18 and 21, reducing his direct ownership by more than 84% to 19,024 shares. Although the sales were made under a pre-arranged trading plan, their size may encourage profit-taking concerns. SEC insider transaction filing Negative Sentiment: Executive Vice President Christian Kleinerman sold 2,622 shares worth about $903,000 to cover tax withholding tied to vested equity awards. Because the transaction was tax-related and represented only a 0.79% reduction in his holdings, it is a relatively weak bearish signal. SEC insider transaction filing Negative Sentiment: A report describes an autonomous AI security agent identifying and exploiting a vulnerability in Snowflake’s GitHub repository. The potential security and reputational implications may concern investors, though the report does not indicate a customer-data breach or operational disruption. Snowflake GitHub vulnerability report Analyst Ratings Changes A number of analysts have commented on SNOW shares. Citizens Jmp upped their price target on shares of Snowflake from $408.00 to $488.00 and gave the company a “market outperform” rating in a research report on Thursday, September 3rd. Cantor Fitzgerald lifted their target price on Snowflake from $405.00 to $430.00 and gave the stock an “overweight” rating in a report on Thursday, September 3rd. Sanford C. Bernstein increased their price target on Snowflake from $195.00 to $250.00 and gave the stock a “market perform” rating in a report on Thursday, May 28th. Truist Financial set a $425.00 price objective on shares of Snowflake and gave the company a “buy” rating in a research note on Thursday, September 3rd. Finally, Mizuho set a $425.00 target price on shares of Snowflake in a research note on Thursday, September 3rd. Thirty-four equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Snowflake presently has a consensus rating of “Moderate Buy” and a consensus target price of $414.24.
Read Our Latest Report on SNOW
Institutional Trading of Snowflake Several institutional investors and hedge funds have recently modified their holdings of the stock. Silicon Valley Capital Partners boosted its position in shares of Snowflake by 15.2% during the second quarter. Silicon Valley Capital Partners now owns 62,087 shares of the company’s stock valued at $15,801,000 after buying an additional 8,208 shares during the last quarter. Wellington Altus USA Inc. purchased a new stake in Snowflake in the 2nd quarter valued at $102,000. Anchor Investment Management LLC purchased a new stake in Snowflake in the 2nd quarter valued at $76,000. Sequoia Financial Advisors LLC lifted its stake in Snowflake by 14.2% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 39,598 shares of the company’s stock valued at $10,078,000 after acquiring an additional 4,927 shares in the last quarter. Finally, MCF Advisors LLC lifted its stake in Snowflake by 1,557.9% during the 2nd quarter. MCF Advisors LLC now owns 315 shares of the company’s stock valued at $80,000 after acquiring an additional 296 shares in the last quarter. 65.10% of the stock is owned by hedge funds and other institutional investors.
About Snowflake (Get Free Report)
Snowflake Inc (NYSE: SNOW) is a cloud-based data platform company that helps organizations store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and business intelligence across public cloud environments.
Snowflake’s Data Cloud enables customers to consolidate and access structured, semi-structured and unstructured data while supporting secure data sharing and collaboration. Its offerings include Snowflake Cortex, which provides artificial intelligence and machine-learning capabilities, as well as tools for developing data applications and using data from Snowflake’s marketplace and partner ecosystem.
Founded in 2012, Snowflake serves businesses, government organizations and other institutions globally through cloud infrastructure provided by major public-cloud platforms.
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Snowflake Inc. (NYSE:SNOW – Get Free Report) EVP Christian Kleinerman sold 2,622 shares of the stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $344.50, for a total value of $903,279.00. Following the transaction, the executive vice president owned 328,738 shares in the company, valued at approximately $113,250,241. This trade represents a 0.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Christian Kleinerman also recently made the following trade(s):
On Wednesday, September 16th, Christian Kleinerman sold 2,986 shares of Snowflake stock. The stock was sold at an average price of $318.51, for a total value of $951,070.86. On Wednesday, September 9th, Christian Kleinerman sold 2,730 shares of Snowflake stock. The shares were sold at an average price of $335.72, for a total value of $916,515.60. On Thursday, September 3rd, Christian Kleinerman sold 10,000 shares of Snowflake stock. The shares were sold at an average price of $380.00, for a total value of $3,800,000.00. On Tuesday, September 1st, Christian Kleinerman sold 15,000 shares of Snowflake stock. The stock was sold at an average price of $325.57, for a total value of $4,883,550.00. On Friday, August 7th, Christian Kleinerman sold 5,000 shares of Snowflake stock. The stock was sold at an average price of $325.00, for a total value of $1,625,000.00. On Friday, August 7th, Christian Kleinerman sold 25,000 shares of Snowflake stock. The shares were sold at an average price of $325.00, for a total transaction of $8,125,000.00. On Monday, August 3rd, Christian Kleinerman sold 10,000 shares of Snowflake stock. The shares were sold at an average price of $297.00, for a total transaction of $2,970,000.00. On Friday, July 31st, Christian Kleinerman sold 9,986 shares of Snowflake stock. The shares were sold at an average price of $300.00, for a total transaction of $2,995,800.00. On Friday, July 31st, Christian Kleinerman sold 20,000 shares of Snowflake stock. The stock was sold at an average price of $300.00, for a total transaction of $6,000,000.00. On Wednesday, July 1st, Christian Kleinerman sold 2,500 shares of Snowflake stock. The stock was sold at an average price of $258.56, for a total transaction of $646,400.00. Snowflake Stock Performance NYSE SNOW opened at $336.14 on Wednesday. The firm has a 50-day moving average price of $314.56 and a two-hundred day moving average price of $234.34. Snowflake Inc. has a 12-month low of $118.30 and a 12-month high of $384.56. The company has a market capitalization of $118.59 billion, a P/E ratio of -105.70 and a beta of 1.33. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 1.06.
Snowflake (NYSE:SNOW – Get Free Report) last announced its earnings results on Wednesday, September 2nd. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.45 by $0.17. The company had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.48 billion. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. The business’s revenue for the quarter was up 35.1% on a year-over-year basis. During the same period last year, the firm earned $0.35 earnings per share. Analysts anticipate that Snowflake Inc. will post -1.57 earnings per share for the current year. Analyst Upgrades and Downgrades SNOW has been the subject of a number of research analyst reports. Benchmark boosted their price target on Snowflake from $290.00 to $360.00 and gave the stock a “buy” rating in a report on Tuesday, August 25th. Oppenheimer raised their price target on shares of Snowflake from $400.00 to $475.00 and gave the company an “outperform” rating in a research note on Thursday, September 3rd. Weiss Ratings restated a “sell (e+)” rating on shares of Snowflake in a research report on Tuesday, September 8th. BTIG Research upped their target price on Snowflake from $340.00 to $424.00 and gave the company a “buy” rating in a report on Thursday, September 3rd. Finally, Argus increased their target price on shares of Snowflake from $300.00 to $450.00 and gave the company a “buy” rating in a research report on Friday, September 4th. Thirty-four analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $414.24.
View Our Latest Analysis on Snowflake
More Snowflake News Here are the key news stories impacting Snowflake this week:
Positive Sentiment: Jim Cramer said Snowflake has “caught fire in recent months” after meeting with the company, reinforcing the bullish view that its data platform is benefiting from increased enterprise software and AI demand. Jim Cramer Notes Snowflake Positive Sentiment: A recent investment analysis argued that Snowflake’s recovery and long-term growth potential may still justify further upside, citing a roughly $425 Street target compared with a current price near $332. This is an analyst-style opinion rather than new company guidance. Snowflake Stock Is Up 45 Percent in a Year Neutral Sentiment: Former Snowflake CFO Mike Scarpelli joined ClickHouse’s board as that company’s run-rate revenue surpassed $350 million. The appointment highlights competition in the data-platform market but does not directly change Snowflake’s fundamentals. ClickHouse Appoints Mike Scarpelli Negative Sentiment: Director Frank Slootman sold a combined 300,000 shares for approximately $100.3 million across September 18 and 21, reducing his direct ownership by more than 84% to 19,024 shares. Although the sales were made under a pre-arranged trading plan, their size may encourage profit-taking concerns. SEC insider transaction filing Negative Sentiment: Executive Vice President Christian Kleinerman sold 2,622 shares worth about $903,000 to cover tax withholding tied to vested equity awards. Because the transaction was tax-related and represented only a 0.79% reduction in his holdings, it is a relatively weak bearish signal. SEC insider transaction filing Negative Sentiment: A report describes an autonomous AI security agent identifying and exploiting a vulnerability in Snowflake’s GitHub repository. The potential security and reputational implications may concern investors, though the report does not indicate a customer-data breach or operational disruption. Snowflake GitHub vulnerability report Institutional Investors Weigh In On Snowflake Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Basecamp Wealth Advisors LLC boosted its position in shares of Snowflake by 140.5% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 202 shares of the company’s stock worth $30,000 after purchasing an additional 118 shares in the last quarter. Emerald Advisers LLC increased its position in Snowflake by 95.2% in the 1st quarter. Emerald Advisers LLC now owns 205 shares of the company’s stock valued at $31,000 after buying an additional 100 shares in the last quarter. MV Capital Management Inc. acquired a new position in Snowflake during the 4th quarter worth approximately $32,000. Copos Capital S.a r.l. bought a new position in Snowflake in the fourth quarter worth approximately $35,000. Finally, Global Assets Advisory LLC bought a new position in Snowflake in the first quarter worth approximately $37,000. 65.10% of the stock is owned by institutional investors.
Snowflake Company Profile (Get Free Report)
Snowflake Inc (NYSE: SNOW) is a cloud-based data platform company that helps organizations store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and business intelligence across public cloud environments.
Snowflake’s Data Cloud enables customers to consolidate and access structured, semi-structured and unstructured data while supporting secure data sharing and collaboration. Its offerings include Snowflake Cortex, which provides artificial intelligence and machine-learning capabilities, as well as tools for developing data applications and using data from Snowflake’s marketplace and partner ecosystem.
Founded in 2012, Snowflake serves businesses, government organizations and other institutions globally through cloud infrastructure provided by major public-cloud platforms.
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AUSTIN, Texas--(BUSINESS WIRE)-- #AI--Liquibase, the leader in Database Change Governance, today announced that Liquibase Secure is now available on Snowflake Marketplace, giving Snowflake customers a new way to automate and govern change. Snowflake, the platform for the AI era, makes it easy for enterprises to innovate faster and get more value from data. As more critical workloads move to Snowflake, the scope and consequence of change grow with it. Teams aren't just changing tables and views. They'.
SAN FRANCISCO--(BUSINESS WIRE)--ClickHouse appoints former Snowflake and ServiceNow CFO Mike Scarpelli to its Board of Directors as run-rate revenue surpasses $350 million.
Snowflake Inc. (NYSE:SNOW – Get Free Report)’s share price was down 1.9% during mid-day trading on Friday . The stock traded as low as $330.14 and last traded at $331.8460. 4,309,302 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 6,726,747 shares. The stock had previously closed at $338.39.
Key Headlines Impacting Snowflake Here are the key news stories impacting Snowflake this week:
Positive Sentiment: Analysts are raising earnings expectations for Snowflake, a trend that typically supports stock momentum. The average Wall Street price target implies roughly 28.7% upside, although target prices are not guarantees. Surging Earnings Estimates Signal Upside for Snowflake Stock Positive Sentiment: Product revenue reportedly increased 37% in fiscal second quarter, driven by AI adoption, greater platform consumption and enterprise expansion. The acceleration strengthens Snowflake’s competitive position against larger technology providers. Snowflake Product Revenue Accelerates Positive Sentiment: Snowflake’s chief executive said the platform is evolving from data storage into a source of business insights, while Daasity launched an MCP AI server that turns Snowflake data into governed business intelligence. These developments provide additional evidence of commercial AI use cases. Snowflake CEO on Business Insights Neutral Sentiment: Snowflake has attracted substantial online and investor attention. That may increase trading interest, but attention alone does not change the company’s fundamentals. Snowflake Attracting Investor Attention Negative Sentiment: Snowflake reduced its fiscal 2027 non-GAAP product gross-margin guidance to 74%, citing a growing mix of lower-margin AI workloads. If AI usage expands faster than pricing or efficiency improves, revenue growth could continue to pressure profitability. What Happens if AI Keeps Costing Snowflake Margin Negative Sentiment: Several executives and directors sold shares under pre-arranged plans, primarily to cover tax withholding on vested equity. Although these sales are not necessarily bearish, multiple insider transactions can weigh on sentiment after a substantial rally. Snowflake Insider Selling Negative Sentiment: Commentary warns that Snowflake’s valuation already reflects significant AI success while the company remains unprofitable. Any slowdown in growth or further margin deterioration could trigger a sharper pullback. Snowflake Valuation and AI Growth Risks Wall Street Analyst Weigh In Several equities research analysts have recently commented on the company. KeyCorp upped their target price on Snowflake from $285.00 to $325.00 and gave the company an “overweight” rating in a report on Thursday, July 16th. UBS Group upped their price objective on shares of Snowflake from $425.00 to $500.00 and gave the company a “buy” rating in a research note on Thursday, September 3rd. Loop Capital upped their target price on Snowflake from $290.00 to $320.00 and gave the stock a “buy” rating in a research report on Wednesday, June 3rd. The Goldman Sachs Group raised their price target on shares of Snowflake from $300.00 to $436.00 and gave the company a “buy” rating in a report on Thursday, September 3rd. Finally, TD Cowen boosted their price target on Snowflake from $370.00 to $450.00 and gave the stock a “buy” rating in a research report on Thursday, September 3rd. Thirty-four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $414.24.
Read Our Latest Stock Analysis on SNOW Snowflake Price Performance The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94. The stock has a 50-day simple moving average of $311.99 and a 200 day simple moving average of $231.51. The company has a market cap of $117.08 billion, a P/E ratio of -104.35 and a beta of 1.33.
Snowflake (NYSE:SNOW – Get Free Report) last announced its quarterly earnings results on Wednesday, September 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.17. Snowflake had a negative net margin of 20.07% and a negative return on equity of 46.32%. The firm had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same quarter in the previous year, the firm posted $0.35 EPS. The business’s revenue for the quarter was up 35.1% on a year-over-year basis. On average, equities analysts expect that Snowflake Inc. will post -1.57 EPS for the current year.
Insider Activity In other news, Director Mark Garrett sold 50,000 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $350.00, for a total value of $17,500,000.00. Following the completion of the sale, the director directly owned 10,074 shares in the company, valued at approximately $3,525,900. This trade represents a 83.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Frank Slootman sold 289,685 shares of the company’s stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $274.39, for a total transaction of $79,486,667.15. Following the transaction, the director owned 28,535 shares in the company, valued at approximately $7,829,718.65. This trade represents a 91.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,045,087 shares of company stock valued at $314,431,792. Company insiders own 4.80% of the company’s stock.
Institutional Inflows and Outflows Several large investors have recently bought and sold shares of the company. Nuveen LLC boosted its holdings in Snowflake by 2.3% in the fourth quarter. Nuveen LLC now owns 5,277,851 shares of the company’s stock valued at $1,157,749,000 after acquiring an additional 116,521 shares during the last quarter. Geode Capital Management LLC boosted its stake in Snowflake by 5.5% in the fourth quarter. Geode Capital Management LLC now owns 4,809,689 shares of the company’s stock valued at $1,052,195,000 after acquiring an additional 249,668 shares during the last quarter. Norges Bank bought a new position in Snowflake in the fourth quarter valued at approximately $974,091,000. Janus Henderson Group PLC grew its holdings in Snowflake by 22.2% during the 1st quarter. Janus Henderson Group PLC now owns 2,997,385 shares of the company’s stock worth $452,014,000 after acquiring an additional 544,960 shares during the period. Finally, Pictet Asset Management Holding SA grew its holdings in Snowflake by 44.7% during the 1st quarter. Pictet Asset Management Holding SA now owns 2,600,571 shares of the company’s stock worth $392,259,000 after acquiring an additional 803,110 shares during the period. Institutional investors and hedge funds own 65.10% of the company’s stock.
Snowflake Company Profile (Get Free Report)
Snowflake Inc (NYSE: SNOW) is a cloud-based data platform company that helps organizations store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and business intelligence across public cloud environments.
Snowflake’s Data Cloud enables customers to consolidate and access structured, semi-structured and unstructured data while supporting secure data sharing and collaboration. Its offerings include Snowflake Cortex, which provides artificial intelligence and machine-learning capabilities, as well as tools for developing data applications and using data from Snowflake’s marketplace and partner ecosystem.
Founded in 2012, Snowflake serves businesses, government organizations and other institutions globally through cloud infrastructure provided by major public-cloud platforms.
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Snowflake Inc. (SNOW - Free Report) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Snowflake Inc., there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $0.60 per share for the current quarter, which represents a year-over-year change of +71.4%.
Over the last 30 days, the Zacks Consensus Estimate for Snowflake has increased 17.53% because nine estimates have moved higher while one has gone lower.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $2.19 per share, representing a year-over-year change of +75.2%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Snowflake. Over the past month, 11 estimates have moved higher compared to one negative revision, helping the consensus estimate increase 13.52%.
Favorable Zacks RankThanks to promising estimate revisions, Snowflake currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for Snowflake have attracted decent investments and pushed the stock 5.3% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Snowflake Inc. (SNOW - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned +5.3% over the past month versus the Zacks S&P 500 composite's -1.3% change. The Zacks Internet - Software industry, to which Snowflake belongs, has gained 7.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Snowflake is expected to post earnings of $0.60 per share, indicating a change of +71.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +17.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.19 points to a change of +75.2% from the prior year. Over the last 30 days, this estimate has changed +13.5%.
For the next fiscal year, the consensus earnings estimate of $2.84 indicates a change of +29.6% from what Snowflake is expected to report a year ago. Over the past month, the estimate has changed +8.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Snowflake is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Snowflake, the consensus sales estimate for the current quarter of $1.64 billion indicates a year-over-year change of +35.5%. For the current and next fiscal years, $6.29 billion and $8 billion estimates indicate +34.2% and +27.3% changes, respectively.
Last Reported Results and Surprise HistorySnowflake reported revenues of $1.55 billion in the last reported quarter, representing a year-over-year change of +35.1%. EPS of $0.62 for the same period compares with $0.35 a year ago.
Compared to the Zacks Consensus Estimate of $1.47 billion, the reported revenues represent a surprise of +4.91%. The EPS surprise was +37.78%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Snowflake is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Snowflake. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Key Takeaways Snowflake's fiscal Q2 product revenues rose 37% to $1.49 billion, accounting for 96% of total revenues. AI products drove roughly half of Snowflake's recent acceleration as migrations and workloads also expanded. Snowflake raised fiscal 2027 product revenue guidance to $6.07 billion, implying 36% year-over-year growth. Snowflake (SNOW - Free Report) is benefiting from accelerating product revenue growth, rising AI adoption, and expanding consumption of its AI Data Cloud. This momentum strengthens the company’s position in enterprise data and AI markets while improving its ability to compete for technology spending against Dell Technologies (DELL - Free Report) and Oracle (ORCL - Free Report) . The company’s fiscal second-quarter performance was driven by consumption across its core platform, with product revenues representing the majority of results. Product revenues rose 37% to $1.49 billion and accounted for 96% of total revenues in the fiscal second quarter 2026.
SNOW’s accelerating product revenue reflects strength across both its core platform and newer AI offerings. Management noted that AI products contributed roughly half of the recent acceleration, while faster migrations and expanding workloads also supported growth. CoCo surpassed 9,100 accounts after adding more than 2,000 during the second quarter of fiscal 2027, while CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Snowflake is also seeing AI adoption drive greater consumption of its core platform, creating a flywheel in which customers adopting AI services increasingly use Snowflake’s broader data capabilities.
Enterprise expansion remains another key catalyst. In the second quarter of fiscal 2027, SNOW had 14,554 total customers, up 32% year over year, after adding 692 net new customers. The company added 14 Forbes Global 2000 customers, taking that total to 829. Large-customer momentum remained strong, with 828 customers generating more than $1 million in trailing 12-month product revenues, up 27% year over year. Another 65 customers exceeded $10 million in trailing product revenues.
SNOW’s accelerating customer adoption and a robust pipeline of AI-driven products are expected to support SNOW’s competitive position against Dell Technologies and Oracle. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth, up from its previous outlook of $5.84 billion and 31% growth. Fiscal third-quarter product revenues are expected to be between $1.588 billion and $1.593 billion, indicating 37-38% growth year over year.
How Competitors Fare Against SNOWSnowflake is facing stiff competition from major players like Dell Technologies and Oracle. Both companies are expanding their footprint in the AI space.
Dell Technologies is benefiting from surging demand for AI infrastructure. The company continues to see AI server demand exceed available supply as customers expand deployments across neocloud, sovereign and enterprise environments. In the second quarter of fiscal 2027, Dell Technologies booked a record $60.9 billion of AI orders and recognized $16.4 billion of AI server revenues. Orders totaled $131.7 billion over the past 12 months, while backlog rose to $95 billion from $51.3 billion at the first quarter of fiscal 2027-end.
Oracle’s expanding portfolio has been noteworthy. In June 2026, Oracle introduced Oracle OPERA Cloud Assistant, a suite of AI-powered capabilities built into OPERA Cloud that automates guest room assignments, generates AI-driven rate descriptions, supports multilingual operations across 230 countries and territories and gives hotel staff real-time operational guidance.
SNOW’s Share Price Performance, Valuation, and EstimatesSnowflake shares have gained 54.3% year to date, outperforming the broader Zacks Computer & Technology sector’s 16.9% appreciation. The Internet Software industry has increased 3% in the same time frame.
SNOW Stock Performance
Image Source: Zacks Investment Research
Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 16.21X compared with the Internet Software industry’s 4.2X. SNOW has a Value Score of F.
SNOW Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $2.19 per share, which has increased 11.16% over the past 30 days. The figure indicates a 75.20% year-over-year increase.
Snowflake currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Corient Private Wealth LP lowered its position in shares of Snowflake Inc. (NYSE:SNOW – Free Report) by 5.3% in the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 31,760 shares of the company’s stock after selling 1,769 shares during the quarter. Corient Private Wealth LP’s holdings in Snowflake were worth $8,083,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors also recently made changes to their positions in the company. Carlson Financial Inc. bought a new position in shares of Snowflake during the 2nd quarter valued at about $240,000. Alan B Lancz & Associates Inc. acquired a new position in shares of Snowflake in the second quarter valued at approximately $202,000. Ameritas Advisory Services LLC boosted its holdings in shares of Snowflake by 439.9% in the second quarter. Ameritas Advisory Services LLC now owns 7,181 shares of the company’s stock valued at $1,828,000 after buying an additional 5,851 shares during the period. Styrax Capital LP bought a new stake in Snowflake in the 2nd quarter valued at $38,175,000. Finally, Sovereign Investment Advisors LLC acquired a new position in Snowflake in the 2nd quarter worth $209,000. 65.10% of the stock is owned by institutional investors.
Insider Activity at Snowflake In other news, Director Frank Slootman sold 289,685 shares of the stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $274.39, for a total transaction of $79,486,667.15. Following the transaction, the director owned 28,535 shares in the company, valued at approximately $7,829,718.65. This trade represents a 91.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Garrett sold 50,000 shares of Snowflake stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $350.00, for a total value of $17,500,000.00. Following the sale, the director directly owned 10,074 shares of the company’s stock, valued at approximately $3,525,900. The trade was a 83.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,045,087 shares of company stock valued at $314,431,792 over the last three months. Company insiders own 4.80% of the company’s stock.
Analyst Upgrades and Downgrades A number of research firms have issued reports on SNOW. Cantor Fitzgerald increased their target price on Snowflake from $405.00 to $430.00 and gave the stock an “overweight” rating in a report on Thursday, September 3rd. TD Cowen raised their price target on shares of Snowflake from $370.00 to $450.00 and gave the stock a “buy” rating in a research note on Thursday, September 3rd. HSBC set a $289.00 price objective on shares of Snowflake and gave the company a “buy” rating in a report on Friday, May 29th. The Goldman Sachs Group raised their target price on shares of Snowflake from $300.00 to $436.00 and gave the company a “buy” rating in a research report on Thursday, September 3rd. Finally, Benchmark increased their price objective on shares of Snowflake from $290.00 to $360.00 and gave the stock a “buy” rating in a research note on Tuesday, August 25th. Thirty-four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $414.24. Check Out Our Latest Research Report on Snowflake
Key Headlines Impacting Snowflake Here are the key news stories impacting Snowflake this week:
Positive Sentiment: Wall Street’s average price target implies approximately 28.7% potential upside, and positive earnings-estimate revisions suggest analysts are becoming more confident in Snowflake’s outlook. Wall Street analysts’ Snowflake price-target analysis Positive Sentiment: Scotiabank raised its fiscal 2027 EPS estimate, maintained a “Sector Outperform” rating and set a $440 price target. The broader analyst consensus is “Moderate Buy,” with an average target of $414.24. Scotiabank Snowflake earnings forecast Positive Sentiment: Analysts continue to point to accelerating AI adoption, customer expansion and Snowflake’s faster growth compared with other enterprise software companies. Snowflake’s Cortex AI is also being used in manufacturing through QAD | Redzone’s ChampionAI, providing evidence of commercial demand. QAD Redzone ChampionAI powered by Snowflake Cortex AI Neutral Sentiment: Snowflake’s AI flywheel has driven a roughly 51% year-to-date gain, but investors and analysts disagree over whether the current valuation fully reflects the company’s growth potential. Snowflake year-to-date performance analysis Negative Sentiment: Valuation remains the main risk. Snowflake continues to report losses and trades at a substantially richer valuation than some enterprise software peers, leaving the stock vulnerable if AI adoption, usage growth or profitability disappoints. Snowflake versus Adobe valuation analysis Negative Sentiment: Several executives and directors sold shares, including CRO Jonathan Beaulier, former chair Frank Slootman and other officers. The transactions were conducted under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity, reducing their signaling value but still adding a modest source of selling pressure. Snowflake insider selling report Snowflake Trading Up 2.2% Snowflake stock opened at $338.25 on Friday. The stock has a 50-day simple moving average of $310.58 and a 200 day simple moving average of $230.80. The stock has a market capitalization of $119.33 billion, a P/E ratio of -106.37 and a beta of 1.33. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.94 and a current ratio of 0.94. Snowflake Inc. has a 52 week low of $118.30 and a 52 week high of $384.56.
Snowflake (NYSE:SNOW – Get Free Report) last released its quarterly earnings data on Wednesday, September 2nd. The company reported $0.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.17. Snowflake had a negative return on equity of 46.32% and a negative net margin of 20.07%.The firm had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same quarter in the prior year, the company earned $0.35 earnings per share. The business’s revenue for the quarter was up 35.1% compared to the same quarter last year. Analysts expect that Snowflake Inc. will post -1.57 earnings per share for the current year.
Snowflake Profile (Free Report)
Snowflake Inc (NYSE: SNOW) is a cloud-based data platform company that helps organizations store, process, analyze and share data. Its platform is designed to support data warehousing, data lakes, data engineering, data science, application development and business intelligence across public cloud environments.
Snowflake’s Data Cloud enables customers to consolidate and access structured, semi-structured and unstructured data while supporting secure data sharing and collaboration. Its offerings include Snowflake Cortex, which provides artificial intelligence and machine-learning capabilities, as well as tools for developing data applications and using data from Snowflake’s marketplace and partner ecosystem.
Founded in 2012, Snowflake serves businesses, government organizations and other institutions globally through cloud infrastructure provided by major public-cloud platforms.
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Snowflake's AI flywheel is spinning faster than almost anyone expected, but the stock has already priced in a lot of that success. Here is what bulls and bears are each getting wrong at this valuation.
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At $331.08, Snowflake (NYSE:SNOW | SNOW Price Prediction) is a Hold. After a 50.93% year-to-date rally that has left the cloud data platform trading near its 52-week high of $384.56, the debate has shifted from whether the AI thesis is real to whether any margin of safety remains.
Snowflake sells consumption-based access to a cloud data platform now positioning itself as the control plane for the Agentic Enterprise, wrapping Cortex AI, CoWork, and Cortex Code (CoCo) around its core warehouse. What brought the stock here is a rare combination for a large-cap software name: three straight quarters of accelerating product revenue growth, twin guidance raises, and visible AI adoption inside 9,100 CoCo accounts.
Why the AI Flywheel Justifies the Multiple Product revenue reached $1.49 billion last quarter, up 37% year over year, with non-GAAP operating margin expanding to 15%. Net revenue retention held at 126%, and remaining performance obligations reached $9 billion, up 30%. Management raised full-year product revenue guidance to $6.07 billion and lifted operating margin guidance from 13.5% to 14.5%.
The AI portfolio is monetizing. CoWork sits at 5,800 accounts, CoCo added more than 2,000 net new accounts in a single quarter, and management said AI products drove roughly half of the growth acceleration. Customer projects deployed on the platform rose 89% year over year. Analysts remain firmly constructive, with an average price target of $425.19. Snowflake is one piece of a much wider AI buildout, and we profiled seven of the power, cooling, and networking suppliers behind it in a free report you can grab here.
Why the Valuation Screams Caution Snowflake trades at 21x trailing sales, 104x free cash flow, and a forward earnings multiple of 167. GAAP economics remain deeply negative. Fiscal 2026 produced a $1.33 billion net loss on $4.68 billion in revenue, and stock-based compensation ran $456 million in a single quarter.
The consumption model cuts both ways. A single quarter of customer optimization, hyperscaler competition intensifying, or AI credit pricing failing to convert can reset the growth trajectory. Full-year non-GAAP product gross margin is guided to 74%, with management acknowledging that AI workloads currently carry lower contribution margins. After a 51% YTD move, priced-in expectations leave little cushion for a single soft quarter.
Why Patience Beats Conviction at This Price The argument cuts both ways. The business is executing at the high end of any reasonable bull case, but the multiple already reflects it. The Hold thesis is that investors already long the name have no reason to sell into strength while fundamentals accelerate, and investors not yet in should wait for either a pullback or hard evidence that AI-driven consumption is compounding into GAAP profitability. Management still targets GAAP profitability in Q4 fiscal 2028, a milestone that would change the valuation conversation entirely.
What the Numbers Show at the Current Price Shares currently trade at $331.08, against a Wall Street average target of $425.19, implying roughly 28% upside if that consensus holds. Targets are one input among many. Of 51 covering analysts, 9 rate the stock Strong Buy, 35 Buy, 5 Hold, 1 Sell, and 1 Strong Sell.
SNOW is up 50.93% year to date and 53.31% over the trailing year, well ahead of the S&P 500 ETF SPDR S&P 500 ETF Trust (NYSEARCA:SPY) at 10.59% YTD and 14.26% over one year. Momentum has cooled recently, with the stock roughly flat over the last month.
Why Waiting Is the Right Call on SNOW At $331.08, Snowflake is a Hold. Here is why.
The path to a Buy runs through two Q3 and Q4 FY27 reports that confirm product revenue growth stays above 35%, non-GAAP operating margin executes to the raised 14.5% guide, and RPO reaccelerates from the current $9 billion. A pullback toward the 200-day moving average near $221 would reset the risk/reward materially. Adding aggressively at $331 after a 51% run assumes both accelerating fundamentals and no multiple compression, a demanding pair.
The path to a Sell runs through a single quarter where net revenue retention slips below 120%, CoCo and CoWork adoption growth flattens, or consumption optimization returns. At 21x sales, that would compress the multiple quickly. Neither scenario is signaled in current data, which is why current data does not support a wholesale exit from the name.
The cost of patience is the risk of missing further upside if the AI flywheel keeps compounding. The cost of acting prematurely is paying peak-cycle valuation on peak-cycle sentiment. Investors should watch net revenue retention, RPO growth, and non-GAAP operating margin execution quarter by quarter, alongside any commentary on AI credit pricing traction.
Snowflake is doing everything right operationally, but at this price the market has already paid for most of it, and that is precisely when disciplined investors stop chasing and start watching.
Contact [email protected] for any questions or corrections.
Snowflake Inc. (SNOW - Free Report) closed the last trading session at $331.02, gaining 1.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $426.14 indicates a 28.7% upside potential.
The mean estimate comprises 44 short-term price targets with a standard deviation of $68.58. While the lowest estimate of $110.00 indicates a 66.8% decline from the current price level, the most optimistic analyst expects the stock to surge 58.6% to reach $525.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in SNOW. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in SNOWAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 13.5% over the past month, as 11 estimates have gone higher while one has gone lower.
Moreover, SNOW currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much SNOW could gain, the direction of price movement it implies does appear to be a good guide.
Snowflake and MongoDB both reported blowout quarters in the same week, serving the same enterprise buyers, but with radically different financial profiles and AI bets. Only one of them makes sense to own through the rest of 2026.
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Snowflake (NYSE:SNOW | SNOW Price Prediction) and MongoDB (NASDAQ:MDB) both dropped Q2 FY2027 results in early September, and the reports read like two different bets on the AI data stack. Snowflake owns the analytics warehouse pushing into agentic control. MongoDB runs the operational database sitting under live applications. Same buyer, different job, and their quarters made the split obvious.
Agentic Flywheel Lifts Snowflake, Atlas Powers MongoDB Snowflake posted revenue of $1.55 billion, up 35.1% year over year, with product revenue of $1.49 billion growing 37%, its third straight quarter of acceleration. CEO Sridhar Ramaswamy called it a “flywheel effect,” and the numbers back him up: CoCo hit 9,100 accounts, adding more than 2,000 in the quarter, while CoWork reached 5,800. Customer wins like 1Password, Indeed, and Sayari show real workload migration beyond pilot spend.
MongoDB delivered $771.77 million in revenue, up 30.5%, its highest growth rate since fiscal 2024. Atlas grew roughly 29%, but the surprise was Enterprise Advanced, up around 36% as banks and public sector customers picked up newly-GA vector search inside self-managed environments. CEO CJ Desai framed the pitch bluntly: “the data an agent actually needs is live operational data, not a stale copy sitting in a warehouse.” That is a direct shot at warehouse-first competitors.
Business Driver Snowflake MongoDB Main Growth Engine Cortex AI, CoCo, CoWork Atlas + Voyage embeddings Net Retention 126% 122% Non-GAAP Op Margin 15.3% 24% Control Plane Ambition Versus Run-Anywhere Discipline Snowflake is spending to become the agentic control plane, and the bill shows. GAAP operating loss hit $263 million with $456 million of stock-based compensation in the quarter. Ramaswamy is willing to accept lower gross margin on AI workloads to lock in consumption. MongoDB is doing the opposite: GAAP operating income of $28.4 million, free cash flow of $137.6 million (nearly doubled), and a Rule of 44 target. Two very different investor pitches.
Valuation reflects the gap. Snowflake trades at a forward P/E of 167 and a price-to-sales of 21. MongoDB looks reasonable by comparison at a forward P/E of 62 and P/S of 11. Year to date, SNOW is up 50.93% while MDB has slipped 10.33%.
Watching Q4 Consumption and Voyage Conversion I want to see whether Snowflake’s $6.07 billion full-year guide holds once AI credit pricing normalizes. For MongoDB, the tell is Voyage. Management admitted many Voyage users are “not MongoDB customers,” so cross-sell into Atlas is the next proof point. Investor Day on September 29 should sharpen that picture.
Why I’d Split the Difference, Leaning MongoDB Snowflake’s quarter was cleaner and its narrative is louder, but I have trouble paying 21 times sales for a company still burning GAAP dollars at scale. If you believe agentic AI reshapes the warehouse, SNOW remains the purest bet. On the setup for the rest of 2026, MongoDB looks like the stronger risk/reward: profitable, cheaper, and levered to operational AI workloads that actually ship to production. If Voyage conversion stalls or Atlas growth slips below 27%, I would rethink it fast.
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