GICS Sector : Technology
Snowflake Inc.provides a cloud-based data platform in the United States and internationally.The company's platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data.
Snowflake reported a robust Q4 FY2026, with product revenue growing 30% year-over-year to $1.23 billion, surpassing expectations. The company's net revenue retention remained healthy at 125%, and remaining performance obligations (RPO) totaled $9.77 billion, growing 42% year-over-year. The earnings per share (EPS) came in at $0.32, beating estimates of $0.2725. The company's strong financial performance was driven by stable growth in its core business and a step-up in growth contribution from AI workloads.
Publication Date: Feb -27
The company's growth was driven by its expanding customer base, with 2,332 net new customers added during the year, and a record number of customers crossing the $10 million threshold in trailing 12-month spend. Snowflake's product acceleration and velocity were key factors in its growth, with the company launching over 430 product capabilities during the year. The company's AI-related products, including Cortex Code, were also a significant contributor to its growth, with Sridhar Ramaswamy emphasizing that AI-related products are driving the upside.
With a P/S Ratio of 12.64 and an EV/EBITDA of -46.43, the market is pricing in significant growth expectations for Snowflake. Analysts estimate next year's revenue growth at 26.9%, which is slightly lower than the company's historical growth rate. Given the company's strong track record and expanding product offerings, it remains to be seen whether Snowflake can continue to deliver on its growth promises. The company's guidance for FY '27, with product revenue expected to grow 27% year-over-year, suggests that it is confident in its ability to continue delivering strong growth.
Brian Robins explained that the margin profile for new AI products is not as high as the core business, but they are offsetting that by finding efficiencies in the core business. The company's non-GAAP adjusted free cash flow margin is expected to be 23%, which includes an approximate 150 basis point headwind related to the Observe acquisition. The company's objective is to build great products, make them easy to use, and drive revenue, and it is working to achieve this while maintaining a healthy margin profile.
ROSEN, A LEADING INVESTOR RIGHTS LAW FIRM, Encourages Snowflake Inc. Investors to Secure Counsel Before Important Deadline in Securities Class Action - SNOW
Mar -20
SNOW Shareholder Alert: Snowflake Inc. Securities Class Action Lawsuit Investors With Losses May Join — The Gross Law Firm
Mar -20
Snowflake Inc. $SNOW Shares Acquired by Coastline Trust Co
Mar -20
Snowflake makes cuts as part of 'targeted adjustments' to the company's strategy
Mar -20
SNOW Investors Have Opportunity to Lead Snowflake Inc. Securities Fraud Lawsuit
Mar -20
Snowflake vs Alphabet: Which Cloud Analytics Stock Has an Edge Now?
Mar -19
SHAREHOLDER ALERT: Bernstein Liebhard LLP Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Camping World Holdings, Inc. (CWH)
Mar -19
INVESTOR ALERT: Pomerantz Law Firm Reminds Investors with Losses on their Investment in Snowflake Inc. of Class Action Lawsuit and Upcoming Deadlines - SNOW
Mar -19
Cloud-based data warehousing and analytics solutions are expected to grow rapidly due to increasing demand for real-time insights and scalability. Snowflake's solutions cater to various industries, driving adoption and growth.
A cloud-based data warehousing and analytics platform that enables users to store, process, and analyze large amounts of data
A platform for building, deploying, and managing data pipelines and data applications
A platform for data scientists to build, deploy, and manage machine learning models
A platform for securely sharing live data across organizations
A platform for discovering, accessing, and purchasing data from various providers
A cloud-based data visualization and exploration platform
Snowflake's cloud-based data warehousing and analytics platform is highly differentiated, making it difficult for substitutes to emerge.
While Snowflake's customers have some bargaining power due to the availability of alternative cloud-based data warehousing solutions, the company's strong brand and high switching costs mitigate this power.
Snowflake's suppliers, primarily cloud infrastructure providers like AWS and Azure, have limited bargaining power due to the company's ability to negotiate favorable terms and its diversified supplier base.
While the threat of new entrants is moderate due to the high barriers to entry in the cloud-based data warehousing market, Snowflake's strong brand and established customer base provide a competitive advantage.
The cloud-based data warehousing market is highly competitive, with established players like Amazon Redshift, Google BigQuery, and Microsoft Azure Synapse Analytics, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 5.27% |
| Debt Cost | 3.95% |
| Equity Weight | 94.73% |
| Equity Cost | 8.44% |
| WACC | 8.20% |
| Leverage | 5.56% |
Value: 0.8
Growth: 6.2
Quality: 8.6
Yield: 0.0
Momentum: 7.0
Volatility: 9.7
1-Year Total Return ->
Value: 4.0
Growth: 7.0
Quality: 3.7
Yield: 0.0
Momentum: 9.0
Volatility: 3.7
1-Year Total Return ->
Value: 0.0
Growth: 9.7
Quality: 5.6
Yield: 0.0
Momentum: 8.0
Volatility: 4.0
1-Year Total Return ->
Value: 2.3
Growth: 6.8
Quality: 8.8
Yield: 0.0
Momentum: 5.0
Volatility: 2.0
1-Year Total Return ->
Value: 2.5
Growth: 8.7
Quality: 5.7
Yield: 0.0
Momentum: 1.5
Volatility: 4.3
1-Year Total Return ->
Value: 7.2
Growth: 0.6
Quality: 9.1
Yield: 0.0
Momentum: 2.5
Volatility: 2.0
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