Snowflake, the cloud-based information platform firm that helps corporations retailer, analyze, and share massive datasets throughout public clouds, reported its fourth-quarter and full-year 2026 earnings final week on February 25.
The corporate, greatest recognized for its AI information cloud platform that permits software growth, information warehousing, and analytics, topped Wall Road expectations, pushed largely by accelerating adoption of synthetic intelligence.
The corporate inventory has struggled in latest months, down 27% this previous quarter and 23% yr up to now. However since reporting a powerful quarter with future development prospects, regardless of an early setback, the inventory is up 2.3% this previous month.
Snowflake earnings: income and margins beat
In This autumn, Snowflake reported $1.23 billion in product income, a 30% year-over-year improve, 2% above the Road consensus. With an 11% working margin that far exceeded the 7% Road estimate, Snowflake additionally guided to elevated product income development in fiscal yr 2027.
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Snowflake earnings at a look:
- Product income $1,227 million, up 30%
- Complete income $1,284 million, up 30%
- Gross revenue margin up 72% at $921 million
- Working earnings at $139 million, up 11%
- EPS $0.32, up 4% yr over yr
Snowflake’s inventory is down 22% yr up to now.
Skaffari/Getty Photographs for Snowflake
Goldman Sachs bullish however trims goal
In a be aware shared with TheStreet, analysts Gabriella Borges, Maura Hager, and Matthew Martino at Goldman Sachs took a deep dive into Snowflake’s earnings report.
The agency maintains its purchase ranking after the earnings report, however lowered its worth goal to $216 from $246.
One spotlight that stands out as promising, in line with Goldman Sachs, is Snowflake’s new providing, Cortex Code.
This context-aware AI coding assistant is embedded immediately into developer workflows, and since its launch in November 2025, has already attracted greater than 4,400 customers.
Goldman factors out that prospects discovered Cortex code environment friendly, some even suggesting that it compressed “16 workweeks into less than a month.”
The code is an efficient instance of Snowflake’s push into AI automation, positioning the corporate as a platform that manages workflows throughout the total information lifecycle.
The agency additionally famous broader adoption of Snowflake, underscoring the corporate’s potential to seize better pockets share.
- Snowflake launched 430+ new capabilities in FY26.
- Signed a $400 million-plus multi-year deal with a monetary companies buyer (consumer identify undisclosed), the most important in firm historical past.
- Remaining efficiency obligations of $9.77 billion, up 42% yr over yr and 24% quarter over quarter.
Given these developments, Goldman expects to see buyer enlargement, pushed by a rise in higher-spending prospects. The agency additionally famous a pickup in cloud RDBMS migrations catalyzed by AI.
And pushed by product innovation, it expects to see better adoption of ML/AI workloads, including to the present momentum, as 9,100+ Snowflake accounts already use its AI options, representing 70% penetration of its complete buyer base.
Nevertheless, analysts are additionally highlighting sure downsides close to time period.
- Iceberg cannibalizing Snowflake’s storage income
- Elevated competitors from CSPs and Databricks
- Opposed modifications within the IT spending or optimization in cloud spending
Analysts react to Snowflake’s AI momentum
- Citi analyst Tyler Radke raised the worth goal to $280 from $270, conserving a purchase ranking, noting that the This autumn report demonstrated elevated AI momentum.
- Baird lowered its worth goal from $270 to $210, conserving an outperform ranking, however is constructive on Snowflake’s rising AI ripples.
- Truist lowered its goal to $240 from $270, conserving a purchase ranking, saying that whereas This autumn outcomes topped the consensus, shares traded decrease after hours as administration had set greater expectations at Q3.
- Deutsche lowered the goal to $230 from $275, conserving a purchase ranking.
- DA Davidson analyst Gil Luria raised the worth goal to $250 from $300, whereas sustaining a purchase ranking, commenting on Snowflake’s sturdy This autumn outcomes, wherein the Firm beat each top- and bottom-line expectations.
Luria provides that the corporate stays an AI winner, remoted from “vibe-coding fears,” and that its conversations with the DEN (developer group) proceed to strengthen its standing as a important element of the enterprise AI puzzle, in line with TheFly.
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