Start here if you're new
what it is
Snowflake rents you a giant cloud-based system to store, organize, share, and analyze your company’s data.
how it gets paid
Last year Snowflake made $3.6B in revenue. core data cloud workloads was the main engine at $1.80B, or 50% of sales.
why it's growing
Revenue grew 29.2% last year. Gross margin at 67.3% matters most because it says the software engine is strong even while operating costs are still too high.
what just happened
The quarter said one thing clearly: revenue hit $3.4B, but the profit story is still messy.
At a glance
B+ balance sheet — decent shape, but not bulletproof
65/100 earnings predictability — reasonably predictable
5.5% return on capital — nothing to write home about
xvary composite: 35/100 — weak
-$1.15 fy2026 eps est
What they do
Snowflake rents you a giant cloud-based system to store, organize, share, and analyze your company’s data.
Snowflake wins because once your data, dashboards, and workflows live inside its platform, leaving is painful. Switching costs (moving to another vendor → rebuilding pipelines and retraining teams → time and money burn) are real. The company signed its largest deal ever at more than $400 million in contract value and closed seven nine-figure deals, which tells you big customers do not treat this like a casual software subscription.
How they make money
$3.6B
annual revenue · their business grew +29.2% last year
core data cloud workloads
$1.80B
ai and machine learning workloads
$0.54B
data sharing and marketplace
$0.36B
applications and industry solutions
$0.54B
professional services and other
$0.36B
The products that matter
cloud data platform and services
Snowflake Data Cloud
$3.6B revenue · 100% of the business
this is effectively the whole company. it produced $3.6B in revenue, and the current debate is not about product sprawl — it is whether 4.2% growth is a pause or a new normal.
entire story
Key numbers
$8B
2028 sales goal
To support today's price, you need revenue to rise from $3.6B to $8B by FY2028, which is more than a doubling.
40.2%
operating margin
Operating margin (profit after running the business → what the model earns before taxes and financing → proof of discipline) is still deeply negative.
67.3%
gross margin
Gross margin (sales left after direct costs → your software economics → room to become profitable later) says the model can work if spending cools.
5.5%
return on capital
Return on capital (profit from each dollar invested → how efficiently management uses money → whether growth is worth it) is low for a premium software stock.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 15 / 100
- long-term debt $2.3B (3% of capital)
- net profit margin 3.1% — keeps 3 cents of every dollar in revenue
- return on equity 6% — $0.06 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in SNOW 3 years ago → it's now worth $16,160.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
The quarter said one thing clearly: revenue hit $3.4B, but the profit story is still messy.
Snowflake posted EPS of -$3.04 and gross margin of 67.3%. That is the split screen here: strong top-line demand versus a business still far from clean profitability.
$987M
revenue
$3.04
eps
67.3%
gross margin
the number that mattered
Gross margin at 67.3% matters most because it says the software engine is strong even while operating costs are still too high.
-
snowflake shares have bounced around a bit over the past three months.
-
the stock rose to around $280 per share before sliding back to the $220-$225 range.indeed, ai-related securities remain under the market’s spotlight, however, with some increasing scrutiny. the investment community likely gave back some of these gains as a result of concerns over potentially softer revenue growth.
-
recent insider selling activity may have also given some pause.
-
at this juncture, our timeliness ranking system pegs snow shares as a market laggard (5: lowest).
-
fiscal third-quarter results were somewhat of a mixed bag.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is slowing consumption growth inside the data cloud. a usage-heavy software story can look sticky and still disappoint if customer workloads stop expanding fast enough.
med
slowing consumption growth
Snowflake generated $3.6B in annual revenue, but that base grew only 4.2% last year. For a stock still priced off future scale, single-digit growth is the risk that matters most.
impact: if growth stays this slow while the street still models $5B for fy2026 revenue, estimate cuts become the story.
med
securities lawsuit
Snowflake is facing a securities lawsuit tied to alleged federal law violations. Legal cases take time, but markets usually price the headline before they price the outcome.
impact: this adds legal-cost and sentiment risk to a stock that already carries a 1.55 beta and just 15 / 100 price stability.
med
expectations still outrun the numbers
The current price is $226.84, while the institutional midpoint target shown here is $199. That gap is not catastrophic. It does mean the stock has less room for disappointment than the narrative suggests.
impact: the snapshot already implies about 12% downside to the midpoint target before you even assume another miss.
Put the pieces together and you get a stock with 4.2% annual growth, a 1.55 beta, 15 / 100 price stability, and a $199 midpoint target versus $226.84 today. The business may be sticky. The setup is not forgiving.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth versus the 4.2% baseline
This is the main scoreboard. If growth keeps hugging single digits, the $5B fy2026 revenue expectation starts looking generous.
calendar
next earnings report
You want clean evidence that the latest $1.2B quarter was part of a trend, not a one-quarter talking point.
risk
lawsuit and insider headlines
Neither changes the product. Both can change sentiment quickly, especially in a stock with a 1.55 beta.
trend
whether price and targets start moving together
Right now the stock is at $226.84 and the midpoint target is $199. You want fundamentals catching up, not just the chart bouncing first.
Analyst rankings
short-term outlook
bottom 5%
momentum score 5 — the lowest rating. in human-speak, analysts think the next stretch could be rough.
risk profile
below average
stability score 4. Translation: SNOW has been more volatile than most stocks, and the 1.55 beta agrees.
chart momentum
top 20%
technical score 2. The chart still has supporters even while the fundamental scorecard looks more skeptical. Welcome to mixed signals.
earnings predictability
65 / 100
Not random, not dependable. You should expect surprises, especially when a negative-EPS company is being priced off future growth.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 717 buyers vs. 527 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$79
$318
$227
current price
$199
target midpoint · 12% from current · 3-5yr high: $400 (+75% · 15% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive