TLDR
- Q4 adjusted EPS for Snowflake reached $0.34, surpassing forecasts by $0.07
- Total revenue achieved $1.28B, exceeding the $1.26B analyst consensus
- Product revenue expanded approximately 30% year-over-year to reach $1.23B
- Major multi-year partnerships valued at $200M each secured with OpenAI and Anthropic
- Shares declined modestly in extended trading hours; three-month performance shows 32.65% decrease
Snowflake delivered a fourth quarter that surpassed Wall Street expectations on earnings and revenue — yet investors responded with restraint.
The company reported adjusted EPS of $0.34, which exceeded the analyst target of $0.27 by seven cents. Total revenue landed at $1.28 billion, topping the consensus forecast of $1.26 billion.
Product revenue, the metric investors track most closely, climbed approximately 30% year-over-year to $1.23 billion, surpassing the $1.18 billion estimate. By most standards, this represents robust growth.
Shares of Snowflake experienced a modest decline during after-hours trading immediately following the earnings release. When Thursday’s premarket session opened, the stock continued trading slightly lower.
Truist Securities analysts identified the underlying issue: elevated expectations. “Snowflake produced fourth-quarter results with upside to consensus,” their research note stated. “However, shares traded off slightly after hours as we believe management set higher expectations when they articulated their methodology on the third-quarter call.”
The company exceeded estimates, though the magnitude fell short of what the market had anticipated.
Snowflake’s shares finished at $169.21 on the day earnings were released. The stock has declined 32.65% during the preceding three-month period, while maintaining a 1.82% gain over the trailing twelve months.
Analyst sentiment leading into the earnings release leaned cautious. During the 90-day period before the report, Snowflake received 6 upward EPS revisions compared to 31 downward adjustments, indicating analysts had been lowering their expectations.
AI Deals and Enterprise Demand
Enterprise adoption of cloud data infrastructure and AI workloads continues accelerating, driving increased consumption through Snowflake’s usage-based revenue model. Higher levels of compute and storage utilization by customers translate directly into greater revenue for Snowflake.
The company strengthened its AI positioning by finalizing separate multi-year contracts valued at $200 million each with OpenAI and Anthropic. These partnerships focus on embedding their AI capabilities within Snowflake’s data platform architecture.
Competition and Guidance
Snowflake’s consumption-based approach encounters meaningful competitive pressure. Databricks, still operating as a private company, recently completed a $5 billion funding round and continues aggressive expansion in overlapping market segments.
Looking ahead to fiscal year 2027, Snowflake forecasts product revenue of $5.66 billion. The company projects Q1 product revenue will fall between $1.26 billion and $1.27 billion.
Snowflake’s most recent closing stock price stood at $169.21.
