TLDR

  • Snowflake’s Q4 EPS landed at $0.34, exceeding analyst estimates by $0.07
  • Revenue reached $1.28 billion, surpassing the $1.26 billion consensus forecast
  • Product revenue increased by approximately 30% year-over-year to $1.23 billion
  • Snowflake inked $200 million multi-year agreements with both OpenAI and Anthropic
  • Stock dipped marginally in after-hours trading despite the beats; down 32.65% over the past three months

Snowflake delivered a strong fourth quarter, outperforming both earnings and revenue expectations — yet the market didn’t react strongly.

Adjusted EPS landed at $0.34, beating the $0.27 analyst estimate by $0.07. Revenue hit $1.28 billion, exceeding the $1.26 billion consensus.

The closely followed product revenue metric increased by about 30% year-over-year to $1.23 billion, surpassing the $1.18 billion estimate. That’s an impressive figure regardless of how you look at it.

SNOW Stock Card

Even with the better-than-expected results, Snowflake’s stock fell slightly in after-hours trading post-announcement. It stayed marginally down in premarket trading on Thursday.

Analysts at Truist Securities highlighted a common issue: expectations. “Snowflake delivered fourth-quarter results that exceeded consensus,” they noted in a report. “Yet shares dipped slightly after hours, as we think management raised expectations when they explained their methodology during the third-quarter earnings call.”

In summary, they outperformed — but not by enough to satisfy a market that was expecting even stronger results.

Snowflake’s stock closed at $169.21 on the day of the earnings report. It has dropped 32.65% over the past three months, though it’s up 1.82% over the last 12 months.

The EPS revision outlook ahead of the earnings release was mixed. Over the past 90 days, Snowflake had 6 positive EPS revisions versus 31 negative ones, indicating analysts had been lowering their expectations.

AI Deals and Enterprise Demand

On the demand front, enterprise clients are investing more in cloud data and AI workloads, which directly benefits Snowflake’s consumption-based pricing structure. The more compute and storage resources customers utilize, the higher Snowflake’s revenue.

To expand its AI presence, Snowflake revealed separate $200 million multi-year deals with both OpenAI and Anthropic. Both agreements focus on integrating their AI models directly into Snowflake’s data platform.

Competition and Guidance

Snowflake’s consumption-based model faces significant competition. Privately held Databricks recently secured a $5 billion funding round and is aggressively competing in the same market.

For fiscal 2027, Snowflake is forecasting product revenue of $5.66 billion. For the first quarter, it expects product revenue to range from $1.26 billion to $1.27 billion.

Snowflake’s most recent reported stock price was $169.21.