Snowflake (SNOW) Stock Dips After Beating Estimates — Here’s Why

TLDR

• Snowflake Q4 EPS came in at $0.34, beating estimates by $0.07
• Revenue hit $1.28B, topping the $1.26B consensus estimate
• Product revenue grew ~30% year-over-year to $1.23B
• Snowflake signed $200M multi-year deals each with OpenAI and Anthropic
• Stock slipped slightly after hours despite the beat; down 32.65% over three months

Snowflake posted a solid fourth quarter, beating on both earnings and revenue — and the market shrugged.

Adjusted EPS came in at $0.34, clearing the $0.27 analyst estimate by $0.07. Revenue reached $1.28 billion, ahead of the $1.26 billion consensus.

The more closely watched product revenue figure rose roughly 30% year-over-year to $1.23 billion, topping estimates of $1.18 billion. That’s a strong number by any measure.

Snowflake Inc., SNOW

Despite the beats, Snowflake’s stock dipped slightly in after-hours trading following the results. In premarket trading on Thursday, it remained marginally lower.

In short, they beat — just not by enough for a market that had been primed for more.

Snowflake’s stock closed at $169.21 on the day of the report. It is down 32.65% over the past three months, though it sits up 1.82% over the past 12 months.

The EPS revision picture heading into the print was mixed. Snowflake saw 6 positive EPS revisions against 31 negative ones in the last 90 days, suggesting analysts had been trimming expectations.

AI Deals and Enterprise Demand

On the demand side, enterprise customers are putting more money into cloud data and AI workloads, which is feeding directly into Snowflake’s consumption-based pricing model. The more compute and storage customers use, the more Snowflake earns.

To push further into AI, Snowflake announced separate multi-year agreements worth $200 million each with OpenAI and Anthropic. Both deals are aimed at integrating their AI models directly into Snowflake’s data platform.

Competition and Guidance

Snowflake’s consumption model faces real competition. Databricks, which remains privately held, recently closed a $5 billion fundraising round and is pressing hard in the same space.

For fiscal year 2027, Snowflake is guiding product revenue of $5.66 billion. For Q1, it expects product revenue of between $1.26 billion and $1.27 billion.

Snowflake’s last reported stock price was $169.21.

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