News about Snowflake

Snowflake (SNOW) stock rose 59.3% from January 18 to October 15, 2026, compared with 12.5% for the S&P 500. Revenue growth has accelerated each quarter since January, from 30.1% in fiscal Q4 2026 to 35.1% in fiscal Q2 2027, and product revenue grew 37% in the latest quarter. The operating loss narrowed to 17.0% of revenue in fiscal Q2 2027 from 29.7% a year earlier, but the company still lost $1.09 billion over the 12 months to July 31, 2026. The stock trades at 21.5 times sales, versus 3.1 for the S&P 500, and the article says the price appears to assume that faster growth and shrinking losses continue. The article points to the fiscal Q3 2027 operating margin, expected on or around December 1, 2026, as the number to watch.

Snowflake (SNOW) shares have returned 169% over the past six months, versus 14.0% for the S&P 500, as investors appear to believe AI has put the company on a faster growth path. However, on the fiscal Q2 2027 call on September 2, 2026, management lowered its fiscal 2027 adjusted product gross margin forecast to 74% from 75%, as a larger share of sales comes from AI workloads that currently carry lower margins. Product revenue grew 37% year over year, with AI products contributing about half of that acceleration. Product revenue makes up 95% of total sales, while the company posted a net margin of negative 20.1% over the past twelve months. Management also raised its fiscal 2027 adjusted operating margin forecast to 14.5% from 13.5%, but the article says adjusted product gross margin is the key figure to watch in the fiscal Q3 2027 report.

Snowflake (SNOW) has returned over 168% in the past six months, as of October 12. The article credits its moat to switching costs from complex enterprise data pipelines and cross-organization data sharing, but notes that support for open data formats lets customers move workloads more easily, and that Databricks, Amazon, Microsoft and Google are all competing for the same business. Product revenue rose 37% to $1.49 billion in Q2 FY2027, net revenue retention reached 126%, and CoCo and CoWork have more than 9,100 and 5,800 accounts, respectively. Snowflake raised its FY2027 product revenue growth outlook to 36%, with expected product revenue of $6.07 billion, but at 169.49x forward earnings and a GAAP operating loss of $263 million in Q2, the article questions how much growth will reach GAAP earnings.