Snowflake stock popped Thursday amid the software maker's fourth-quarter earnings and revenue that topped Wall Street targets while full-year fiscal 2026 guidance came in above expectations.
The enterprise software maker released its Snowflake earnings report after the market close on Wednesday.
On an adjusted basis, Snowflake earnings were 30 cents per share, down 14% from a year earlier. Analysts expected Snowflake to report adjusted profit of 18 cents per share.
Revenue climbed 27% to $986.8 million, the enterprise software maker said. Analysts projected Q4 revenue of $956.9 million.
At RBC Capital, analyst Matthew Hedberg noted that Q4 revenue beat estimates by 3%, less than the 6% beat in Q3.
Snowflake Stock: Fiscal 2026 Guidance
For fiscal 2026, Snowflake forecast product revenue growth of 24% to $4.28 billion vs. consensus estimates for 23% growth to $4.23 billion.
"While management provided a conservative first-quarter guide, fiscal 2026 guidance came in above the Street for product revenue and non-GAAP operating margin as new product contribution ramps up," said William Blair analyst Jason Ader in a report.
Privately held Databricks has been Snowflake's biggest rival. Snowflake announced an expanded partnership with Microsoft.
"We believe Snowflake is back on track towards an acceleration narrative and view the story as a key AI play," said Jefferies analyst Brent Thill in a report. "Investors need to continue to be long in 2025."
CFO Scarpelli To Retire
Meanwhile, chief financial officer Michael Scarpelli announced his plans to retire.
On the stock market today, Snowflake stock popped more than 12% to over 187 in early trading.
SNOW stock had advanced 10% in 2025 heading into the Snowflake earnings report after tumbling 22% last year.
Snowflake sells data analytics software that runs on cloud-computing platforms. Also, the company has evolved into a cloud data-management software provider.
According to IBD Stock Checkup, SNOW stock holds an IBD Composite Rating of 60 out of a best-possible 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating.
In addition, SNOW stock has an Accumulation/Distribution Rating of C. The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
