Quick Summary
- Snowflake’s Q4 adjusted earnings per share reached $0.34, surpassing the $0.27 consensus by $0.07
- Quarterly revenue totaled $1.28B, exceeding the $1.26B Wall Street forecast
- Product revenue climbed approximately 30% annually to $1.23B
- The company secured $200M multi-year partnerships with both OpenAI and Anthropic
- Shares declined modestly in after-hours trading despite beating expectations; three-month performance shows a 32.65% decline
Snowflake delivered impressive fourth-quarter results that exceeded Wall Street projections on both the top and bottom lines — yet investors weren’t impressed.
The cloud data platform reported adjusted earnings per share of $0.34, comfortably ahead of the $0.27 analyst consensus by seven cents. Total revenue came to $1.28 billion, surpassing the anticipated $1.26 billion.
The key metric investors focus on — product revenue — increased roughly 30% from the prior year to $1.23 billion, beating analyst projections of $1.18 billion. This represents robust growth by most standards.
Despite these positive results, Snowflake’s shares edged lower during after-hours trading Wednesday. The stock continued to trade marginally down in Thursday’s premarket session.
Truist Securities analysts highlighted a recurring issue: inflated expectations. “Snowflake delivered fourth-quarter performance that exceeded consensus estimates,” they noted. “Nevertheless, shares experienced slight after-hours declines as we suspect management established elevated expectations during their third-quarter earnings call when outlining their forecasting approach.”
Put simply, the company cleared the bar — it just wasn’t high enough for a market anticipating more substantial outperformance.
Snowflake’s shares finished regular trading at $169.21 on the earnings release date. The stock has declined 32.65% during the previous three-month period, though it maintains a modest 1.82% gain over the trailing twelve months.
Analyst sentiment leading up to the earnings announcement appeared cautious. The company received 6 upward EPS revisions compared to 31 downward adjustments during the preceding 90 days, indicating Wall Street had been lowering the bar.
Strategic AI Partnerships and Customer Growth
On the customer adoption front, enterprise organizations are increasing investment in cloud-based data infrastructure and artificial intelligence workloads, directly benefiting Snowflake’s consumption-driven revenue model. Higher compute and storage utilization by customers translates to increased revenue for the platform.
Expanding its artificial intelligence capabilities, Snowflake revealed separate multi-year contracts valued at $200 million apiece with OpenAI and Anthropic. These strategic partnerships focus on embedding their advanced AI capabilities within Snowflake’s cloud data ecosystem.
Competitive Landscape and Forward Outlook
Snowflake’s consumption-based business model encounters significant competitive pressure. Databricks, still operating as a private entity, recently completed a substantial $5 billion funding round and continues aggressive expansion in overlapping market segments.
Looking ahead to fiscal year 2027, Snowflake projects product revenue will reach $5.66 billion. For the upcoming first quarter, management anticipates product revenue ranging between $1.26 billion and $1.27 billion.
Snowflake’s most recent closing stock price stood at $169.21.
