Snowflake stock surges after strong Q4 earnings and guidance
Snowflake (SNOW) stock surged over 12% on Thursday following the company’s fourth-quarter earnings report, which exceeded Wall Street expectations. The enterprise software maker reported better-than-expected revenue and provided strong guidance for fiscal 2026, signaling renewed growth momentum.
Q4 Earnings Beat Expectations
Snowflake reported adjusted earnings of 30 cents per share for Q4, down 14% from the previous year but well above analysts’ estimates of 18 cents per share. The company’s revenue climbed 27% to $986.8 million, surpassing Wall Street’s projection of $956.9 million.
RBC Capital analyst Matthew Hedberg noted that Snowflake’s Q4 revenue beat estimates by 3%, although this was less than the 6% beat in Q3. Nevertheless, the solid earnings report reflects strong demand for Snowflake’s data analytics and cloud data-management solutions.
Fiscal 2026 Guidance Exceeds Expectations
Snowflake provided bullish guidance for fiscal 2026, projecting product revenue growth of 24% to $4.28 billion, ahead of consensus estimates for 23% growth to $4.23 billion. The company also guided for non-GAAP operating margin growth as new product contributions ramp up.
“While management provided a conservative first-quarter guide, fiscal 2026 guidance came in above the Street for product revenue and non-GAAP operating margin,” said William Blair analyst Jason Ader. This strong outlook contributed to the stock’s double-digit surge in early trading.
Jefferies analyst Brent Thill noted, “We believe Snowflake is back on track towards an acceleration narrative and view the story as a key AI play. Investors need to continue to be long in 2025.”
Strategic Partnerships and Competitive Landscape
Snowflake continues to strengthen its competitive position by expanding strategic partnerships. The company announced an expanded collaboration with Microsoft (MSFT), enhancing its cloud data-management capabilities and positioning itself as a leading player in the AI and data analytics space.
Privately held Databricks remains Snowflake’s biggest rival, but the expanded Microsoft partnership is expected to enhance Snowflake’s competitive edge. Analysts are optimistic about Snowflake’s growth trajectory as it leverages strategic alliances to drive product innovation.
CFO Transition and Stock Performance
Snowflake also announced that Chief Financial Officer Michael Scarpelli plans to retire. The company did not specify a timeline for the transition but is expected to announce his successor in the coming months.
Despite last year’s 22% decline, SNOW stock has gained 10% in 2025 and soared over 12% in early trading on Thursday following the earnings report. The stock currently trades above $187, reflecting renewed investor confidence.
According to IBD Stock Checkup, SNOW stock holds a Composite Rating of 60 out of 99, which reflects mixed technical and fundamental metrics. The stock also has an Accumulation/Distribution Rating of C, indicating moderate institutional buying and selling.
AI Growth Narrative and Investor Sentiment
Analysts are optimistic about Snowflake’s AI-driven growth narrative, viewing the company as a key beneficiary of the accelerating demand for data analytics and cloud computing solutions. The company’s strategic focus on AI integration and data management positions it for long-term growth.
Jefferies analyst Brent Thill emphasized Snowflake’s growth potential, stating, “We believe Snowflake is back on track towards an acceleration narrative and view the story as a key AI play.”
Positive Outlook for Snowflake
Snowflake’s strong Q4 earnings, bullish fiscal 2026 guidance, and strategic partnerships underscore its growth potential in the competitive data analytics and cloud computing market. The company’s strategic alignment with AI and data management trends is expected to drive continued growth.
As Snowflake expands its product offerings and capitalizes on AI opportunities, investors remain optimistic about its long-term prospects. The stock’s double-digit surge reflects renewed confidence, positioning Snowflake as a compelling growth story in the tech sector.
Source: Guardian Globe
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