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Why Is Snowflake (SNOW) Down 6.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Snowflake Inc. (SNOW - Free Report) . Shares have lost about 6.2% in that time frame, outperforming 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? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Snowflake Inc. before we dive into how investors and analysts have reacted as of late.
Snowflake Q4 Earnings Beat Estimates, Revenues Up Y/Y
Snowflake reported fourth-quarter fiscal 2026 non-GAAP earnings of 32 cents per share, beating the Zacks Consensus Estimate by 19.18%. The company reported earnings of 30 cents per share in the year-ago quarter.
Revenues of $1.28 billion beat the consensus mark by 2.42% and rose 30.1% year over year. Americas, EMEA (Europe, the Middle East, and Africa), and APJ (Asia Pacific and Japan) contributed 78%, 16%, and 6% to revenues, respectively.
SNOW’s Q4 Details
Snowflake’s product revenues were $1.22 billion, which accounted for 96% of total revenues. The figure represents a year-over-year increase of 30%. Professional Services and other revenues were $57.4 million, which contributed 4% of total revenues, representing a 32% year-over-year increase.
In the fiscal fourth quarter, Snowflake saw a net revenue retention rate of 125% for existing customers. The company reported 21% year-over-year growth in the number of customers, reaching 13,328 in the fiscal fourth quarter. The company now has 733 customers with trailing 12-month product revenues greater than $1 million (up 27% year over year) and 790 Forbes Global 2000 customers. In the fourth quarter of fiscal 2026, the company added 740 net new customers, representing 40% year-over-year growth.
The non-GAAP gross margin contracted 90 basis points (bps) year over year to 71.7%. Product gross margin was 75% in the reported quarter.
Research & development expenses, as a percentage of revenues, decreased 290 bps on a year-over-year basis to 20.5%. General & administrative expenses, as a percentage of revenues, were 5.5%, down 100 bps year over year. Sales and marketing expenses, as a percentage of revenues, expanded 160 bps on a year-over-year basis to 34.9%.
Operating margin expanded 140 bps on a year-over-year basis to 10.8%.
SNOW’s Balance Sheet & Cash Flow Details
As of Jan. 31, 2026, Snowflake had cash, cash equivalents, and short-term investments of $4.02 billion compared with $3.36 billion as of Oct. 31, 2025.
The remaining performance obligations at the end of the fourth quarter of fiscal 2026 were $9.77 billion, up 42% year over year.
The adjusted free cash flow was $782.2 million in the reported quarter.
SNOW Offers Positive Guidance
For the first quarter of fiscal 2027, Snowflake expects product revenues in the range of $1.262-$1.267 billion. The projection range indicates year-over-year growth of 27%. The operating margin is expected to be 9% for the fiscal first quarter.
For fiscal 2027, Snowflake expects product revenues of $5.660 billion, indicating 27% year-over-year growth. The company anticipates a product gross margin of 75%, an operating margin of 12.5% and a free cash flow margin of 23%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted 5.3% due to these changes.
VGM Scores
At this time, Snowflake has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Snowflake has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Snowflake is part of the Zacks Internet - Software industry. Over the past month, CCC Intelligent Solutions Holdings Inc. (CCC - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended December 2025 more than a month ago.
CCC Intelligent Solutions reported revenues of $277.86 million in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $0.10 for the same period compares with $0.10 a year ago.
CCC Intelligent Solutions is expected to post earnings of $0.10 per share for the current quarter, representing a year-over-year change of +25%. Over the last 30 days, the Zacks Consensus Estimate has changed +13.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for CCC Intelligent Solutions. Also, the stock has a VGM Score of B.
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Why Is Snowflake (SNOW) Down 6.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Snowflake Inc. (SNOW - Free Report) . Shares have lost about 6.2% in that time frame, outperforming 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? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Snowflake Inc. before we dive into how investors and analysts have reacted as of late.
Snowflake Q4 Earnings Beat Estimates, Revenues Up Y/Y
Snowflake reported fourth-quarter fiscal 2026 non-GAAP earnings of 32 cents per share, beating the Zacks Consensus Estimate by 19.18%. The company reported earnings of 30 cents per share in the year-ago quarter.
Revenues of $1.28 billion beat the consensus mark by 2.42% and rose 30.1% year over year. Americas, EMEA (Europe, the Middle East, and Africa), and APJ (Asia Pacific and Japan) contributed 78%, 16%, and 6% to revenues, respectively.
SNOW’s Q4 Details
Snowflake’s product revenues were $1.22 billion, which accounted for 96% of total revenues. The figure represents a year-over-year increase of 30%. Professional Services and other revenues were $57.4 million, which contributed 4% of total revenues, representing a 32% year-over-year increase.
In the fiscal fourth quarter, Snowflake saw a net revenue retention rate of 125% for existing customers. The company reported 21% year-over-year growth in the number of customers, reaching 13,328 in the fiscal fourth quarter. The company now has 733 customers with trailing 12-month product revenues greater than $1 million (up 27% year over year) and 790 Forbes Global 2000 customers. In the fourth quarter of fiscal 2026, the company added 740 net new customers, representing 40% year-over-year growth.
The non-GAAP gross margin contracted 90 basis points (bps) year over year to 71.7%. Product gross margin was 75% in the reported quarter.
Research & development expenses, as a percentage of revenues, decreased 290 bps on a year-over-year basis to 20.5%. General & administrative expenses, as a percentage of revenues, were 5.5%, down 100 bps year over year. Sales and marketing expenses, as a percentage of revenues, expanded 160 bps on a year-over-year basis to 34.9%.
Operating margin expanded 140 bps on a year-over-year basis to 10.8%.
SNOW’s Balance Sheet & Cash Flow Details
As of Jan. 31, 2026, Snowflake had cash, cash equivalents, and short-term investments of $4.02 billion compared with $3.36 billion as of Oct. 31, 2025.
The remaining performance obligations at the end of the fourth quarter of fiscal 2026 were $9.77 billion, up 42% year over year.
The adjusted free cash flow was $782.2 million in the reported quarter.
SNOW Offers Positive Guidance
For the first quarter of fiscal 2027, Snowflake expects product revenues in the range of $1.262-$1.267 billion. The projection range indicates year-over-year growth of 27%. The operating margin is expected to be 9% for the fiscal first quarter.
For fiscal 2027, Snowflake expects product revenues of $5.660 billion, indicating 27% year-over-year growth. The company anticipates a product gross margin of 75%, an operating margin of 12.5% and a free cash flow margin of 23%.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted 5.3% due to these changes.
VGM Scores
At this time, Snowflake has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Snowflake has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Snowflake is part of the Zacks Internet - Software industry. Over the past month, CCC Intelligent Solutions Holdings Inc. (CCC - Free Report) , a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended December 2025 more than a month ago.
CCC Intelligent Solutions reported revenues of $277.86 million in the last reported quarter, representing a year-over-year change of +12.7%. EPS of $0.10 for the same period compares with $0.10 a year ago.
CCC Intelligent Solutions is expected to post earnings of $0.10 per share for the current quarter, representing a year-over-year change of +25%. Over the last 30 days, the Zacks Consensus Estimate has changed +13.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for CCC Intelligent Solutions. Also, the stock has a VGM Score of B.