From Nasdaq: 2025-02-24 11:49:00

Snowflake (SNOW) is scheduled to report its Q4 fiscal 2025 results on Feb. 26. Revenue estimate is $952.67 million, up 22.97% YoY. Earnings are expected at 17 cents per share, down 51.43% YoY. SNOW has beaten estimates in 3 of the last 4 quarters, with an average surprise of 35.39%.

SNOW faces margin pressure from increased GPU costs and competition. However, growth is expected from Iceberg and Snowpark adoption. SNOW had 1,000+ deployed use cases, 3,200+ accounts using AI/ML features, and 18 Global 2000 customers by Q3 2025.

Snowflake shares outperform the Computer & Technology sector, up 15.2% YTD. The stock has a forward 12-month P/S ratio of 13.2X compared to the sector’s 6.45X. SNOW stock trades above the 50-day and 200-day moving averages, indicating a bullish trend.

Snowflake benefits from partnerships with major players like Amazon, Microsoft, and NVIDIA. Features like data interoperability and transformation are gaining traction. Partnerships with Microsoft and ServiceNow enhance data interoperability. SNOW’s planned acquisition of Datavolo strengthens its platform.

Snowflake’s rich partner base, expanding client base, and acquisitions are positives. However, competitive pressures and rising costs pose challenges. With a Growth Score of C and a stretched valuation, the stock is a risky bet. SNOW currently has a Zacks Rank #3 (Hold), suggesting caution before Q4 results.



Read more at Nasdaq: Snowflake Stock Before Q4 Earnings: To Buy or Not to Buy?