Snowflake Stock Needs to Bounce Back. Earnings Could Be the Trigger.
Feb 25, 2026, 1:30 am EST
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Analysts expect Snowflake to report fourth-quarter product revenue of $1.2 billion. (Dreamstime)
Key Points
About This Summary
- Snowflake is set to report fourth-quarter financials, with analysts expecting 27 cents per share on $1.26 billion in revenue.
- Analysts project fourth-quarter product revenue to increase 27% year-over-year, a slight deceleration from 29% in Q3.
- Snowflake shares have fallen sharply this year, yet 44 of 51 analysts surveyed by FactSet rate the stock as a Buy.
Snowflake has been a casualty of the software selloff. Shareholders can look to earnings as a possible catalyst to bring the stock back to life.
SNOW+2.20% is scheduled to report fourth-quarter financials after the stock market closes Wednesday. Analysts surveyed by FactSet expect the vendor of data warehouse and cloud data management solutions to post adjusted earnings of 27 cents a share on revenue of $1.26 billion.
In the same period last year, Snowflake reported earnings of 30 cents a share on revenue of $986.8 million.
Wall Street will also be looking closely at product revenue growth. Snowflake stock dropped 11% on Dec. 4, even after the company reported better-than-expected earnings and sales, as investors were unhappy with decelerating product revenue growth in its third quarter.
Analysts expect fourth-quarter product revenue of $1.2 billion. While that would be a 27% increase from the previous year, it’s a slight slowdown from the 29% year-over-year growth reported in the previous quarter.
Stifel analyst Brad Reback wrote on Feb. 22 that investors’ product revenue expectations were high coming into earnings last quarter. He believes those expectations have since been “appropriately recalibrated,” following the stock’s recent selloff.
Reback added that any reaccelerating product revenue growth “would be viewed favorably by the investor base.” He rates Snowflake as a Buy with a $225 price target.
Shares of Snowflake have fallen 27% this year. Software stocks across the board have taken a beating as investors worry that artificial intelligence will disrupt or replace critical software functions. Snowflake is also an expensive stock. It trades at 94.5 times earnings expected over the next 12 months.
Analysts are still mostly bullish, though. Of the 51 surveyed by FactSet, 44 say the stock is a Buy, and the rest rate it at Hold.
TD Cowen analyst Derrick Wood rates Snowflake as a Buy with a $270 price target. He wrote on Feb. 19 that the company “remains above the
AI disruption fray.”
“We think SNOW is ushering in a high level of innovation to the large data management market, supporting a long growth runway,” Wood wrote. “As companies become more data-driven and digital-oriented, SNOW should grow in strategic importance and wallet share.”
Write to Angela Palumbo at angela.palumbo@dowjones.com
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