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Snowflake Stock Jumps on Better-Than-Expected Results, Outlook
KEY TAKEAWAYS
Shares of Snowflake ( SNOW ) surged 13% in premarket trading Thursday, a day after the cloud software provider reported better-than-estimated results and a buoyant outlook on booming demand for artificial intelligence (AI) products.
The company posted fiscal 2025 fourth-quarter adjusted earnings per share (EPS) of $0.30 on revenue that rose 27% year-over-year to 986.8 million. Analysts polled by Visible Alpha expected $0.18 and $957.6 million, respectively.
Product revenue was $943.3 million, up 28% and above estimates. Snowflake projected current-quarter product revenue of between $955 million and $960 million, translating to a 21%-22% gain.
"Management noted better visibility into upcoming AI product ramps that would drive meaningful re-acceleration in 2H," wrote Citi analysts, who have a "buy" rating on the stock.
Snowflake shares had fallen almost 30% over the past 12 months through Wednesday.
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