Snowflake (NYSE:SNOW) Shares Gap Up on Strong Earnings

Key Points

• Snowflake shares gapped up after the company reported better-than-expected quarterly results, opening at $237 versus the prior close of $175.26 and trading sharply higher on heavy volume.
• The company beat estimates with EPS of $0.39 on revenue of $1.39 billion, and revenue rose 33.5% year over year, highlighting strong top-line growth.
• Management also raised its annual product revenue forecast, fueled by improving enterprise AI and cloud migration demand, while analysts broadly responded with higher price targets and buy ratings.

Snowflake Inc. (NYSE:SNOW - Get Free Report) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $175.26, but opened at $237.00. Snowflake shares last traded at $238.3480, with a volume of 12,422,885 shares traded.

The company reported $0.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.32 by $0.07. The company had revenue of $1.39 billion during the quarter, compared to analysts' expectations of $1.32 billion. Snowflake had a negative return on equity of 50.61% and a negative net margin of 28.43%.Snowflake's revenue was up 33.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.24 EPS.

More Snowflake News

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake reported first-quarter fiscal 2027 results that beat expectations, with EPS of $0.39 and revenue of $1.39 billion, while product revenue rose 34% year over year. Snowflake Reports Financial Results for the First Quarter of Fiscal 2027
• Positive Sentiment: The company raised its annual product revenue forecast, signaling that enterprise AI and cloud migration demand is improving faster than expected. Snowflake jumps as enterprise demand for data offerings drives forecast raise
• Positive Sentiment: Snowflake announced a five-year, $6 billion strategic collaboration with Amazon Web Services, including use of AWS Graviton processors and AI infrastructure, which investors view as a major growth catalyst. Snowflake Expands AWS Collaboration with $6B Commitment to Accelerate Enterprise Agentic AI Adoption
• Positive Sentiment: Several Wall Street firms raised price targets and reiterated buy ratings, including Bank of America, Benchmark, Needham, Stifel, and Monness Crespi & Hardt, reinforcing bullish sentiment after the earnings report. Analyst price target updates
• Neutral Sentiment: Snowflake also announced it intends to acquire Natoma, a move aimed at improving governance and secure connectivity for AI agents; the deal is strategically important but still needs to close. Snowflake Announces Intent to Acquire Natoma
• Negative Sentiment: Despite the rally, Snowflake remains unprofitable on a GAAP basis and its valuation has risen sharply, which could make the stock more sensitive to any slowdown in AI spending or execution missteps.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on SNOW shares. Canaccord Genuity Group set a $325.00 price objective on shares of Snowflake in a report on Thursday. TD Cowen reaffirmed a "buy" rating on shares of Snowflake in a research report on Friday, May 22nd. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $284.00 price target on shares of Snowflake in a research note on Thursday. Bank of America boosted their price target on Snowflake from $205.00 to $300.00 and gave the company a "buy" rating in a report on Thursday. Finally, Guggenheim reissued a "neutral" rating on shares of Snowflake in a research note on Wednesday, February 18th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $263.08.

Insider Buying and Selling at Snowflake

In other news, Director Michael L. Speiser sold 50,338 shares of the stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $175.19, for a total transaction of $8,818,714.22. Following the transaction, the director directly owned 30,236 shares in the company, valued at approximately $5,297,044.84. This trade represents a 62.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Vivek Raghunathan sold 3,876 shares of Snowflake stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $152.80, for a total transaction of $592,252.80. Following the transaction, the senior vice president directly owned 273,323 shares in the company, valued at approximately $41,763,754.40. The trade was a 1.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 428,963 shares of company stock worth $71,996,216. Company insiders own 4.80% of the company's stock.

Institutional Investors Weigh In On Snowflake

A number of hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC raised its stake in shares of Snowflake by 90.0% during the 4th quarter. Brighton Jones LLC now owns 61,885 shares of the company's stock worth $9,556,000 after acquiring an additional 29,320 shares in the last quarter. Intech Investment Management LLC boosted its stake in Snowflake by 24.0% in the first quarter. Intech Investment Management LLC now owns 11,202 shares of the company's stock valued at $1,637,000 after acquiring an additional 2,167 shares in the last quarter. Geneos Wealth Management Inc. grew its holdings in Snowflake by 29.7% in the first quarter. Geneos Wealth Management Inc. now owns 319 shares of the company's stock worth $47,000 after purchasing an additional 73 shares during the last quarter. Flow Traders U.S. LLC purchased a new position in Snowflake in the second quarter worth $221,000. Finally, The Manufacturers Life Insurance Company increased its position in shares of Snowflake by 7.2% during the second quarter. The Manufacturers Life Insurance Company now owns 22,603 shares of the company's stock worth $5,055,000 after purchasing an additional 1,521 shares in the last quarter. 65.10% of the stock is currently owned by hedge funds and other institutional investors.

Snowflake Stock Performance

The business has a 50-day moving average price of $153.75 and a 200-day moving average price of $190.65. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 1.18. The firm has a market capitalization of $82.41 billion, a price-to-earnings ratio of -60.12 and a beta of 1.08.

Snowflake Company Profile

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

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

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