Snowflake (NYSE:SNOW) Reaches New 1-Year High on Earnings Beat

Snowflake Inc. (NYSE:SNOW) shares reached a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $384.56 and last traded at $373.5860, with a volume of 5175402 shares trading hands. The stock had previously closed at $305.84.

The company reported $0.62 EPS for the quarter, beating the consensus estimate of $0.45 by $0.17. The firm had revenue of $1.55 billion during the quarter, compared to the consensus estimate of $1.48 billion. Snowflake had a negative net margin of 23.79% and a negative return on equity of 50.50%. The business’s quarterly revenue was up 35.1% compared to the same quarter last year. During the same period last year, the firm earned $0.35 EPS.

Key Stories Impacting Snowflake

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake reported adjusted earnings of $0.62 per share, above the $0.45 consensus estimate, while revenue reached $1.55 billion, exceeding expectations of $1.48 billion and increasing 35% year over year. Reuters: Snowflake shares surge as AI demand powers growth and lifts outlook
• Positive Sentiment: Management raised fiscal 2027 product-revenue guidance to $6.07 billion, citing stronger-than-expected AI demand. Product revenue grew 37%, and adoption of AI offerings including the CoCo coding agent and Cortex helped reinforce the company’s AI-growth narrative. CNBC: Snowflake spikes on healthy results and AI coding momentum
• Positive Sentiment: Several analysts raised their price targets and adopted bullish ratings after the results. Targets include $424 from BTIG, $450 from DA Davidson, Canaccord and Monness Crespi & Hardt, and $488 from Citizens JMP, with ratings ranging from “buy” to “market outperform.”
• Neutral Sentiment: Snowflake’s selection by Sayari to rebuild its Commercial World Model supports the platform’s enterprise-data and AI positioning. Sayari expects the migration to reduce its data-infrastructure costs by more than 50%, although the announcement is unlikely to materially affect near-term financial results. PR Newswire: Sayari selects Snowflake
• Negative Sentiment: Management lowered fiscal 2027 gross-margin guidance to 74%, a further 100-basis-point reduction, warning that expanding AI workloads are increasing costs. This raises questions about how efficiently Snowflake can monetize rapid AI usage. Seeking Alpha: Snowflake’s hidden warning in Q2
• Negative Sentiment: At an elevated valuation, Snowflake remains exposed to disappointment if AI growth slows or margins deteriorate. Persistent GAAP losses, stock-based compensation dilution, and substantial short interest add volatility and may explain why the stock has decreased despite strong results.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on SNOW shares. Oppenheimer lifted their price objective on Snowflake from $400.00 to $475.00 and gave the company an “outperform” rating in a research note on Thursday. Guggenheim restated a “neutral” rating on shares of Snowflake in a research note on Thursday. Needham & Company LLC raised their price target on Snowflake from $330.00 to $450.00 and gave the company a “buy” rating in a report on Thursday. Bank of America lifted their price target on Snowflake from $330.00 to $395.00 and gave the company a “buy” rating in a research report on Wednesday, August 19th. Finally, Mizuho set a $425.00 price objective on Snowflake in a report on Thursday. Thirty-four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $386.62.

Insider Buying and Selling

In related news, Director Frank Slootman sold 289,685 shares of the stock in a transaction on Monday, July 20th. The stock was sold at an average price of $274.39, for a total value of $79,486,667.15. Following the transaction, the director owned 28,535 shares of the company’s stock, valued at $7,829,718.65. This represents a 91.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christian Kleinerman sold 25,000 shares of the firm’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $325.00, for a total value of $8,125,000.00. Following the sale, the executive vice president owned 340,379 shares in the company, valued at $110,623,175. The trade was a 6.84% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,156,901 shares of company stock worth $321,725,352. Corporate insiders own 4.80% of the company’s stock.

Hedge Funds Weigh In On Snowflake

A number of large investors have recently modified their holdings of SNOW. California State Teachers Retirement System lifted its position in Snowflake by 25,944.6% in the 2nd quarter. California State Teachers Retirement System now owns 127,340,602 shares of the company’s stock worth $32,408,183,000 after buying an additional 126,851,670 shares during the last quarter. Norges Bank purchased a new position in shares of Snowflake during the fourth quarter worth approximately $974,091,000. Jericho Capital Asset Management L.P. purchased a new position in shares of Snowflake during the fourth quarter worth approximately $345,619,000. William Blair Investment Management LLC lifted its holdings in shares of Snowflake by 159.9% in the 4th quarter. William Blair Investment Management LLC now owns 1,346,998 shares of the company’s stock worth $295,477,000 after acquiring an additional 828,789 shares during the last quarter. Finally, Pictet Asset Management Holding SA lifted its holdings in shares of Snowflake by 44.7% in the 1st quarter. Pictet Asset Management Holding SA now owns 2,600,571 shares of the company’s stock worth $392,259,000 after acquiring an additional 803,110 shares during the last quarter. 65.10% of the stock is owned by hedge funds and other institutional investors.

Snowflake Stock Up 21.9%

The company has a market cap of $129.26 billion, a PE ratio of -107.32 and a beta of 1.33. The stock’s 50 day moving average price is $293.26 and its 200-day moving average price is $218.27. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.05 and a current ratio of 1.05.

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.