Snowflake is expected to report strong Q1 earnings with revenue and earnings growth

From Nasdaq: 2025-05-19 10:15:00

Snowflake (SNOW) will report Q1 fiscal 2026 results on May 21. Revenue estimate is $1 billion, up 21.13% YoY, with earnings estimate of 22 cents per share, up 57.14% YoY. Snowflake’s expanding clientele and partner base are expected to drive growth, with product revenues projected to grow 21-22% YoY in Q1.

Snowflake shares have outperformed the Computer and Technology sector, surging 18.5% YTD. However, SNOW stock is currently overvalued with a Value Score of F and a higher Price/Sales ratio than the sector average. Snowflake’s innovative portfolio and expanding partner base have driven its success.

Snowflake’s expanding portfolio includes key products like Apache Iceberg and Hybrid tables, Polaris, Cortex Large Language Model, and ML functions. Recent enhancements in AI Data Cloud offerings show potential for continued growth. Snowflake’s strong partnerships with major players like Microsoft, Amazon, and NVIDIA are driving further growth.

Looking ahead, Snowflake faces competitive pressures and rising costs, with a tough YoY revenue comparison in Q1 fiscal 2026 due to lapping the leap year. Non-GAAP operating margin is also expected to be impacted by expenses related to a sales kickoff event. With a Zacks Rank #3 (Hold), investors should wait for a better entry point to accumulate SNOW stock.



Read more at Nasdaq: Should You Buy, Hold, or Sell Snowflake Stock Before Q1 Earnings?