Snowflake (SNOW) thawed resistance with a beat and raise in its latest earnings, sending its stock close to a 52-week high after hours. However, Urban Outfitters (URBN) couldn't meet expectations with its investors despite having a beat of its own.
The data-warehousing company hit a revenue milestone and issued an upbeat outlook.
The leading cloud data warehousing company Snowflake (NYSE:SNOW) is scheduled to announce its Q1 FY'26 (quarter ending April 2025) earnings on May 21, reflecting a quarter where the organization is expected to continue capitalizing on its initiative to provide artificial intelligence tools to its clients. It is anticipated that revenues will increase by 21% year-over-year to around $1 billion, according to consensus estimates, while adjusted earnings are forecasted at $0.21 per share, which represents a 50% year-over-year rise.
SNOW's fiscal first-quarter results are likely to reflect gains from an increasing clientele and an expanding partner base.
I remain strongly bullish on Snowflake ahead of earnings, citing robust revenue growth, record RPO, and consistent revenue surprises. Snowflake's aggressive R&D and high net revenue retention support its innovation, cross-selling, and long-term shareholder value creation. DCF analysis reveals a 70% upside to $310 per share, making SNOW significantly undervalued, despite high current P/E ratios.
I maintain a strong sell on Snowflake due to sharply decelerating growth, declining net revenue retention, and heavy stock-based compensation dilution. Snowflake's consumption-based revenue model is weakening, with customers buying more credits than they use, risking smaller contract renewals and future revenue declines. Valuation remains extremely stretched, with forward P/E and price-to-sales multiples far above sector medians, unjustified by slowing fundamentals and intensifying competition.
Besides Wall Street's top -and-bottom-line estimates for Snowflake (SNOW), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended April 2025.
Snowflake SNOW and Datadog DDOG are major players in the cloud computing industry, offering data analytics and observability solutions that help enterprises monitor and analyze their cloud infrastructure. While Snowflake specializes in data warehousing and analytics, Datadog focuses on infrastructure monitoring and observability.
In the most recent trading session, Snowflake Inc. (SNOW) closed at $181.02, indicating a +0.27% shift from the previous trading day.
Snowflake Inc.'s stock is currently undervalued with a 40% potential upside, which is absolutely unfair given the company's prospects to capitalize on AI tailwinds. SNOW's commitment to AI is evident through expanding R&D, partnerships, and initiatives like free AI courses in India, enhancing its market position. Despite fierce competition from tech giants, Snowflake's innovation and differentiation strategies have been successful so far.
Zacks.com users have recently been watching Snowflake (SNOW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Snowflake Inc. (SNOW) closed at $167.87 in the latest trading session, marking a +0.13% move from the prior day.