Snowflake (NYSE:SNOW) Shares Gap Up After Earnings Beat

Shares of Snowflake Inc. (NYSE:SNOW) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $175.26, but opened at $237.00. Snowflake shares last traded at $238.3480, with a volume of 12,422,885 shares.

The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.07. Snowflake had a negative return on equity of 50.61% and a negative net margin of 28.43%.The company had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.32 billion. During the same period in the prior year, the company posted $0.24 EPS. The firm’s quarterly revenue was up 33.5% compared to the same quarter last year.

Snowflake News Roundup

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake reported first-quarter fiscal 2027 results that beat expectations, with EPS of $0.39 and revenue of $1.39 billion, while product revenue rose 34% year over year. Snowflake Reports Financial Results for the First Quarter of Fiscal 2027
• Positive Sentiment: The company raised its annual product revenue forecast, signaling that enterprise AI and cloud migration demand is improving faster than expected. Snowflake jumps as enterprise demand for data offerings drives forecast raise
• Positive Sentiment: Snowflake announced a five-year, $6 billion strategic collaboration with Amazon Web Services, including use of AWS Graviton processors and AI infrastructure, which investors view as a major growth catalyst. Snowflake Expands AWS Collaboration with $6B Commitment to Accelerate Enterprise Agentic AI Adoption
• Positive Sentiment: Several Wall Street firms raised price targets and reiterated buy ratings, including Bank of America, Benchmark, Needham, Stifel, and Monness Crespi & Hardt, reinforcing bullish sentiment after the earnings report. Analyst price target updates
• Neutral Sentiment: Snowflake also announced it intends to acquire Natoma, a move aimed at improving governance and secure connectivity for AI agents; the deal is strategically important but still needs to close. Snowflake Announces Intent to Acquire Natoma
• Negative Sentiment: Despite the rally, Snowflake remains unprofitable on a GAAP basis and its valuation has risen sharply, which could make the stock more sensitive to any slowdown in AI spending or execution missteps.

Analyst Upgrades and Downgrades

SNOW has been the subject of a number of recent analyst reports. Zacks Research upgraded shares of Snowflake from a “strong sell” rating to a “hold” rating in a research note on Wednesday, March 4th. Rosenblatt Securities upped their price target on shares of Snowflake from $275.00 to $285.00 and gave the company a “buy” rating in a research note on Thursday. DA Davidson decreased their price target on shares of Snowflake from $300.00 to $250.00 and set a “buy” rating for the company in a report on Thursday, February 26th. Citizens Jmp reiterated a “market outperform” rating and set a $325.00 price objective on shares of Snowflake in a research note on Tuesday, May 19th. Finally, Oppenheimer reissued an “outperform” rating on shares of Snowflake in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $263.08.

Insider Buying and Selling at Snowflake

In other Snowflake news, Director Frank Slootman sold 144,650 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $175.45, for a total transaction of $25,378,842.50. Following the completion of the transaction, the director directly owned 38,046 shares of the company’s stock, valued at approximately $6,675,170.70. This trade represents a 79.18% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christian Kleinerman sold 10,000 shares of Snowflake stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $165.01, for a total transaction of $1,650,100.00. Following the sale, the executive vice president owned 510,477 shares of the company’s stock, valued at approximately $84,233,809.77. The trade was a 1.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 428,963 shares of company stock worth $71,996,216 in the last 90 days. Corporate insiders own 4.80% of the company’s stock.

Institutional Investors Weigh In On Snowflake

Several hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC grew its position in Snowflake by 90.0% during the 4th quarter. Brighton Jones LLC now owns 61,885 shares of the company’s stock worth $9,556,000 after purchasing an additional 29,320 shares during the period. Intech Investment Management LLC lifted its holdings in shares of Snowflake by 24.0% in the 1st quarter. Intech Investment Management LLC now owns 11,202 shares of the company’s stock valued at $1,637,000 after buying an additional 2,167 shares during the period. Geneos Wealth Management Inc. lifted its holdings in shares of Snowflake by 29.7% in the 1st quarter. Geneos Wealth Management Inc. now owns 319 shares of the company’s stock valued at $47,000 after buying an additional 73 shares during the period. Flow Traders U.S. LLC purchased a new stake in shares of Snowflake in the second quarter worth about $221,000. Finally, The Manufacturers Life Insurance Company boosted its stake in shares of Snowflake by 7.2% in the second quarter. The Manufacturers Life Insurance Company now owns 22,603 shares of the company’s stock worth $5,055,000 after buying an additional 1,521 shares during the last quarter. 65.10% of the stock is owned by hedge funds and other institutional investors.

Snowflake Stock Performance

The firm has a fifty day moving average of $153.75 and a 200 day moving average of $190.65. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.30 and a quick ratio of 1.30. The stock has a market capitalization of $82.41 billion, a price-to-earnings ratio of -60.12 and a beta of 1.08.

Snowflake Company Profile

Snowflake Inc is a cloud-native data platform company that provides a suite of services for storing, processing and analyzing large volumes of data. Its core offering, often described as the Snowflake Data Cloud, combines data warehousing, data lake and data sharing capabilities in a single managed service delivered across major public cloud providers. The platform is designed to support analytics, data engineering, data science and application workloads with a focus on scalability, concurrency and simplified administration.

Key products and capabilities include a multi-cluster, shared-data architecture that separates compute from storage; continuous data ingestion and streaming; support for structured and semi-structured data formats; tools for data governance, security and compliance; and developer frameworks for building data applications.