Key Takeaways
- Snowflake’s Q4 earnings per share reached $0.34, exceeding forecasts by $0.07
- Quarterly revenue totaled $1.28B, surpassing the $1.26B Wall Street projection
- Product revenue climbed approximately 30% annually to $1.23B
- The company secured $200M multi-year contracts with both OpenAI and Anthropic
- Shares declined in extended trading despite exceeding expectations; down 32.65% in the past three months
Snowflake delivered a robust fourth-quarter performance, exceeding both profit and revenue projections — yet Wall Street responded with a collective yawn.
The company’s adjusted earnings per share landed at $0.34, sailing past the analyst consensus of $0.27 by seven cents. Revenue clocked in at $1.28 billion, surpassing the anticipated $1.26 billion mark.
The critical product revenue metric jumped approximately 30% compared to the year-ago period, reaching $1.23 billion and beating the $1.18 billion forecast. By traditional standards, these figures represent substantial growth.
Yet shares of Snowflake edged lower in after-hours activity once the earnings dropped. Thursday’s premarket session showed continued weakness.
Truist Securities analysts highlighted a recurring challenge: elevated expectations. “Snowflake delivered fourth-quarter performance that exceeded consensus projections,” they noted in their research commentary. “Nevertheless, shares retreated modestly in extended trading, likely because management established elevated expectations during their third-quarter earnings discussion.”
In essence, the company outperformed — but not dramatically enough for investors who had been anticipating an even stronger showing.
Snowflake’s shares finished regular trading at $169.21 on report day. The stock has tumbled 32.65% across the preceding three-month period, although it maintains a modest 1.82% gain year-over-year.
Analyst sentiment heading into the release leaned cautious. Over the previous 90 days, Snowflake received just 6 upward EPS revisions compared to 31 downward adjustments, indicating Wall Street had been moderating its outlook.
Major AI Partnerships and Growing Corporate Adoption
On the business front, enterprise clients are channeling increased capital toward cloud-based data infrastructure and artificial intelligence initiatives, which directly benefits Snowflake’s consumption-driven revenue structure. Higher utilization of compute resources and data storage translates directly into stronger revenue.
To deepen its AI capabilities, Snowflake unveiled separate multi-year partnerships valued at $200 million apiece with OpenAI and Anthropic. These agreements focus on embedding their advanced AI technologies within Snowflake’s data ecosystem.
Competitive Landscape and Forward Outlook
Snowflake’s usage-based business model confronts genuine competitive pressure. Databricks, still operating as a private entity, just completed a massive $5 billion funding round and continues aggressively targeting the identical market segment.
Looking ahead to fiscal 2027, Snowflake projects product revenue will reach $5.66 billion. For the upcoming first quarter, the company anticipates product revenue landing between $1.26 billion and $1.27 billion.
Snowflake’s most recent closing price stood at $169.21.
