SNOW shares slip post Q3 as an outage hits revenues, but strong AI momentum and solid guidance keep investor interest alive.
Snowflake ( NYSE:SNOW ) released its third-quarter earnings yesterday, posting results that topped Wall Street estimates.
Investors are hammering Snowflake's stock despite quarterly results that topped analysts' expectations on the top and bottom lines.
SNOW's Q3 results benefit from strong customer gains and wider margins, but its shares dip sharply in after-hours trade.
Shares of Snowflake Inc (NYSE:SNOW) are plummeting 10% to trade at $238.57 this morning, trading back near their late-November lows after the software company's Q4 operating margin guidance disappointed investors.
Snowflake stock was up 68% for the year up until the stock market closed December 3.
Snowflake Inc (NYSE:SNOW) reported third quarter earnings that beat Wall Street expectations, but shares fell about 9% in early trade as the company forecast slower product revenue growth for the fourth quarter, partly due to discounts on large, long-term deals. The cloud data analytics expects product revenue growth of 27% in Q4, down from 29% growth in the October quarter, reaching $1.16 billion.
Snowflake (SNOW) is rated a buy after a post-earnings dip, with shares near $240 offering a compelling entry point. Q3 results beat expectations, but soft Q4 guidance and margin outlook triggered a 9% drop despite robust 28% revenue growth and 73% gross margin. SNOW trades at 19x sales versus a 35x long-term average, presenting 20–30% equity upside if valuation reverts, supported by strong AI-driven growth.
Nvidia (NVDA) dodges a major U.S. legislative hurdle, as AI chip export restrictions to China were excluded from key defense policy. Snowflake (SNOW) posts strong Q3 results but disappoints with Q4 guidance, reinforcing concerns of growth stabilization despite aggressive AI partnerships.
Snowflake Inc. (SNOW) Q3 2026 Earnings Call Transcript
Although the revenue and EPS for Snowflake (SNOW) give a sense of how its business performed in the quarter ended October 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Snowflake Inc. (SNOW) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.2 per share a year ago.