SNOW stock benefits from strong AI partnerships and a growing portfolio, but stretched valuation and competition raise investor caution.
Snowflake (SNOW) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Snowflake delivered a strong Q1'26, beating revenue and EPS estimates, driven by robust enterprise customer growth and high retention rates. I maintain my strong buy rating, as Snowflake's expanding AI product adoption and healthy free cash flow support its premium valuation, despite slight retention pressure. Snowflake continued to excel, especially in terms of enterprise customer growth, and posted strong net revenue retention rates of 124% in Q1'26.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Snowflake delivered a solid first quarter earnings release, with 26% product revenue growth and strong net revenue retention, demonstrating remarkable resilience. Guidance remains upbeat, projecting 25% YoY product revenue growth with steady margins. Valuation risk is significant, with SNOW trading at 110x forward EBITDA, leaving little margin for error if growth or execution falters.
SNOW's first-quarter fiscal 2026 results reflect continuing growth in product revenues, driven by customer-base expansion.
Cloud stock Snowflake Inc (NYSE:SNOW) is jumping to 52-week highs, up 10.7% at $198.28 at last glance, after the company hiked its full-year product revenue forecast.
The software company delivered solid first-quarter results. Its customers aren't spooked by all the economic uncertainty.
Jenny Horne takes a look at positive reports from vastly different companies. The first of which is Urban Outfitters (URBN), which opened at an all-time high after a strong showing in earnings.
Snowflake Inc. (NYSE:SNOW ) Q1 2026 Earnings Conference Call May 21, 2025 5:00 PM ET Company Participants Jimmy Sexton - Head of IR Sridhar Ramaswamy - CEO Mike Scarpelli - CFO Christian Kleinerman - EVP of Product Conference Call Participants Sanjit Singh - Morgan Stanley Kirk Materne - Evercore ISI Raimo Lenschow - Barclays Karl Keirstead - UBS Mark Murphy - JPMorgan Kasthuri Rangan - Goldman Sachs Michael Richards - RBC Capital Markets Brad Zelnick - Deutsche Bank Bo Yin - Jefferies Patrick Colville - Scotiabank Alex Zukin - Wolfe Research Joel Fishbein - Truist Securities Brad Reback - Stifel Tyler Radke - Citi Operator Good afternoon, and thank you for attending the Snowflake Inc. Q1 Fiscal Year 2026 Earnings Call. My name is Matt, and I'll be the moderator for today's call.
The headline numbers for Snowflake (SNOW) give insight into how the company performed in the quarter ended April 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Snowflake Inc. (SNOW) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.14 per share a year ago.