Shares of Snowflake (SNOW) surged in after-hours trading after the data warehousing giant reported fourth-quarter results for Fiscal Year 2025. Adjusted earnings of $0.30 per share beat analysts’ consensus estimate of $0.18 per share. Furthermore, the company saw a 27.4% increase in revenue to $986.77 million, which beat estimates of $956.89 million. This could be attributable to a 33% increase in remaining performance obligations to $6.9 billion and a net revenue retention rate of 126%.
Interestingly, Snowflake’s CEO, Sridhara Ramaswamy, highlighted the firm’s strong product revenue growth of 28% from the previous year and its significant customer base of over 11,000 businesses. Ramaswamy also emphasized that Snowflake is a leading data and AI company that focuses on delivering innovative solutions to support its customers’ data needs.
Outlook for 2026
Looking forward, the company anticipates its product revenue to come in at $4.28 billion in Fiscal Year 2026, which was above the estimate of $4.23 billion. On the other hand, for the upcoming quarter, Snowflake expects its product revenue to range between $955 million and $960 million. This was slightly lower than the $962.6 million estimate. Furthermore, it anticipates a 5% operating margin for the full year.
Is SNOW a Good Buy Right Now?
After a 29% decline in SNOW shares over the past year, analysts have a Strong Buy consensus rating on SNOW stock based on 26 Buys, four Holds, and zero Sells with an average price target of $204.89 per share. However, it’s worth noting that estimates will likely change following today’s earnings report.
