MW Snowflake's stock soars as revenue and guidance cheer up investors

By Ciara Linnane

Data-software company offers upbeat revenue guidance for fiscal 2026

Snowflake Inc.'s stock soared 11% in after-hours trade Wednesday, after the company's fiscal fourth-quarter revenue topped estimates and it offered upbeat guidance for fiscal 2026.

The data-software company (SNOW) said revenue rose to $986.8 million in the quarter ended Jan. 31, up from $774.7 million in the prior year's quarter and ahead of the FactSet analyst consensus of $957 million.

Product revenue came to $943.3 million, also ahead of the $914.0 million FactSet consensus.

Chief Executive Sridhar Ramaswamy said the company now has more than 11,000 customers using its platform with a net revenue retention rate of 126%.

Snowflake said year-over-year growth in remaining performance obligations amounted to 33% in the quarter, to $6.9 billion. The metric tracks the amount of contracted future revenue that Snowflake has yet to recognize.

Overall, the company had a net loss of $327.5 million, or 99 cents a share, for the quarter, after a loss of $169.4 million, or 51 cents a share, in the year-earlier period. Adjusted for one-time items, it had EPS of 35 cents, ahead of the 18-cent FactSet consensus.

Snowflake is expecting fiscal first-quarter product revenue of $955 million to $960 million, while FactSet analysts are expecting $961 million.

For all of fiscal 2026, it expects product revenue of $4.280 billion, up 24%, while FactSet is expecting $4.234 billion.

The stock has fallen 28% in the last 12 months, while the S&P 500 SPX has gained 17.5%.

-Ciara Linnane

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February 26, 2025 16:37 ET (21:37 GMT)

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