Snowflake (NYSE:SNOW) is gearing up to announce its quarterly earnings on Wednesday, 2025-08-27. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Snowflake will report an earnings per share (EPS) of $-0.07.
The announcement from Snowflake is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Performance in Previous Earnings
During the last quarter, the company reported an EPS beat by $0.03, leading to a 13.43% increase in the share price on the subsequent day.
Here's a look at Snowflake's past performance and the resulting price change:
| Quarter | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 |
|---|---|---|---|---|
| EPS Estimate | 0.21 | 0.17 | 0.15 | 0.16 |
| EPS Actual | 0.24 | 0.30 | 0.20 | 0.18 |
| Price Change % | 13.0% | 5.0% | 33.0% | -15.0% |
Snowflake Share Price Analysis
Shares of Snowflake were trading at $194.68 as of August 25. Over the last 52-week period, shares are up 75.89%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on Snowflake
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Snowflake.
Analysts have given Snowflake a total of 22 ratings, with the consensus rating being Outperform. The average one-year price target is $246.5, indicating a potential 26.62% upside.
Comparing Ratings with Competitors
In this analysis, we delve into the analyst ratings and average 1-year price targets of Cloudflare, CoreWeave and GoDaddy, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Cloudflare, with an average 1-year price target of $216.83, suggesting a potential 11.38% upside.
- Analysts currently favor an Neutral trajectory for CoreWeave, with an average 1-year price target of $128.06, suggesting a potential 34.22% downside.
- Analysts currently favor an Outperform trajectory for GoDaddy, with an average 1-year price target of $195.17, suggesting a potential 0.25% upside.
Insights: Peer Analysis
In the peer analysis summary, key metrics for Cloudflare, CoreWeave and GoDaddy are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Snowflake | Outperform | 25.75% | $693.29M | -15.91% |
| Cloudflare | Outperform | 27.76% | $383.64M | -3.79% |
| CoreWeave | Neutral | 206.75% | $900.12M | -8.43% |
| GoDaddy | Outperform | 8.28% | $775.30M | 66.18% |
Key Takeaway:
Snowflake ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity.
Get to Know Snowflake Better
Founded in 2012, Snowflake is a fully managed platform that consolidates data hosted on different public clouds for centralized analytics and governance. Snowflake's cloud-native architecture allows users to independently scale the compute and storage layers, providing customers with optimized performance at lower costs. The company's data lake and data warehouse products support a variety of use cases, including business analytics, data engineering, and artificial intelligence. Snowflake is widely used by Fortune 2000 companies in financial services, media, and retail sectors.
Unraveling the Financial Story of Snowflake
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Positive Revenue Trend: Examining Snowflake's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 25.75% as of 30 April, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Net Margin: Snowflake's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -41.27%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -15.91%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -5.0%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.12.
To track all earnings releases for Snowflake visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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