SNOW

Snowflake SNOW reported second-quarter fiscal 2027 non-GAAP earnings of 62 cents per share, up 77.1% year over year and surpassed the Zacks Consensus Estimate by 37.78%. Revenues of $1.55 billion increased 35.1% and beat the consensus mark by 4.91%. Growth was driven by strength in the core data platform and a meaningful step-up in AI revenue. SNOW’s fiscal second-quarter performance was driven by consumption across its core platform, with product revenues representing the majority of results. Product revenues rose 37% to $1.49 billion and accounted for 96% of total revenues in the fiscal second quarter. Professional services and other revenues were $54.9 million, representing the remaining 4% of revenues and increasing 0.8% year over year.Geographically, the Americas contributed 77% of revenues, while EMEA accounted for 17% and APJ contributed 6%. Management said that product revenue growth accelerated for the third consecutive quarter, supported by the core data platform and AI demand. Snowflake Inc. price-consensus-eps-surprise-chart | Snowflake Inc. Quote CoCo surpassed 9,100 accounts, adding more than 2,000 during the quarter. CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Management said that AI products, including CoCo, CoWork, AI functions and AI Gateway, contributed roughly half of the acceleration in growth.Snowflake launched more than 330 product capabilities to general availability in the first half of fiscal 2027, up 35% year over year. New offerings included Cortex Sense and Cortex AI Gateway, which integrates Natoma to extend AI from insight to action. Customer use cases deployed on the platform increased 89% year over year, while use cases won per account executive rose 43%. Management also said that accounts using CoCo consumed more of the core platform, while gross retention remained relatively flat across recent quarters. SNOW ended the quarter with 14,554 total customers after adding 692 net new customers, a 32% year-over-year increase in net additions. The company added 14 Forbes Global 2000 customers, taking that total to 829.Large-customer momentum remained strong, with 828 customers generating more than $1 million in trailing 12-month product revenues, up 27% year over year. Another 65 customers exceeded $10 million in trailing product revenues. Retention remained a key support for the consumption model. Net revenue retention rate was 126%, reflecting healthy expansion within the existing customer base. Contracted demand also remained solid, with remaining performance obligations (RPO) of $9.00 billion, up 30% year over year. Snowflake expects roughly 54% of RPO to be recognized as revenue over the next 12 months. As of July 31, 43% of customers had at least one stable data-sharing edge, while Marketplace listings reached 4,105, up 21%. The non-GAAP gross margin contracted 120 basis points (bps) year over year to 71.8%. Non-GAAP product gross margin was 74.7%. Non-GAAP sales and marketing expense represented 32% of revenues, down from 34% a year ago, while research and development fell to 20% from 22% and general and administrative expense declined to 5% from 6%.Non-GAAP operating income reached $237.0 million, producing a 15.3% operating margin. The year-ago non-GAAP operating margin was 11.1%. Management attributed the improvement to strong revenue growth and disciplined headcount management. Year to date, Snowflake added 334 employees, including 173 from Observe, compared with 935 additions in the year-ago period. As of July 31, 2026, cash, cash equivalents, and short- and long-term investments were $4.3 billion compared with $4.39 billion as of April 30.In the reported quarter, net cash provided by operating activities was $91.4 million. Free cash flow totaled $83.8 million, while adjusted free cash flow was $92.3 million.For the first six months of fiscal 2027, operating cash flow increased to $334.6 million from $303.3 million a year earlier, while adjusted free cash flow rose to $357.8 million from $274.0 million. For the third quarter of fiscal 2027, Snowflake expects product revenues between $1.588 billion and $1.593 billion, implying 37% to 38% year-over-year growth. The company expects a non-GAAP operating margin of 15.5%.For fiscal 2027, product revenues are projected to be $6.07 billion, representing 36% growth, up from the prior guidance of $5.84 billion and 31% growth. Snowflake also raised its non-GAAP operating margin outlook to 14.5% from 13.5%, expects a 74% non-GAAP product gross margin and reiterated a 23% adjusted free cash flow margin. Snowflake currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Oracle ORCL, ServiceTitan TTAN and Micron Technology MU. Each stock currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Oracle shares have plunged 25.2% in the year-to-date period. Oracle is set to report first-quarter fiscal 2027 results on Sept. 10.Shares of ServiceTitan have plunged 13.5% year to date. ServiceTitan is set to report second-quarter fiscal 2027 results on Sept. 8.Shares of Micron Technology have rallied 235% year to date. Micron Technology is slated to report fiscal fourth-quarter 2026 results on Sept. 30. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Morningstar lifted its price targets for both companies, citing stronger AI-driven growth and margin opportunities. Snowflake’s results highlighted accelerating enterprise AI demand, though Morningstar warned competition could intensify as agentic AI enthusiasm cools. HPE’s results showed AI spending broadening into servers, networking and hybrid cloud. Snowflake and Hewlett Packard Enterprise delivered strong quarterly reports, but investors reacted very differently, with Snowflake shares surging 24% premarket on Thursday while HPE stock fell about 5%. Morningstar analysts nonetheless raised their price targets for both companies, citing stronger AI-driven growth prospects. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox Snowflake’s second-quarter revenue rose 35% to $1.55 billion, beating expectations, and the company raised its full-year revenue forecast. Morningstar raised its target on SNOW to $284 from $255, citing stronger AI tailwinds that should benefit both revenue growth and margins. However, the firm cautioned that the company’s recent outperformance is driven primarily by the broader enterprise AI market rather than a unique competitive advantage. “Shares shot up 23% after earnings and look overvalued to us,” Morningstar said, warning that competition could intensify as enthusiasm around agentic AI eventually fades. HPE, meanwhile, reported fiscal third-quarter revenue of $9.2 billion, up 34%, and also raised its annual forecast, following a similarly strong report by rival Dell Technologies earlier this week. Morningstar analysts said the results show AI demand is spreading beyond specialized AI infrastructure into HPE’s broader portfolio, including hybrid cloud, general-purpose servers, and networking. The firm also pointed to HPE’s recent Oracle deal combining Juniper networking products with other hardware for a multigigawatt buildout. Despite the stock’s selloff, Morningstar raised its HPE target to $66 from $64. “We thought earnings were solid and are a bit surprised by the after-hours selloff and view shares as undervalued,” the analysts said. On Stocktwits, the retail sentiment for SNOW increased to nearly the highest-possible in the ‘extremely bullish’ zone (97/100), and the sentiment for HPE also climbed sharply higher to ‘extremely bullish’ (92/100). “$HPE Now trading at a single digit P/E of 9 and change after that beat and raise. One of the best values right now in the AI hardware space with phenomenal management and consistent execution. I sure hopes it opens around this price tomorrow as I'll be opening some long dated bull call spreads,” a trader said. There was skepticism around SNOW. A trader wrote: “$SNOW Almost 25% in AH. This is just, i mean. wow. I don't really buy short positions. But im seriously considering it.” For updates and corrections, email newsroom[at]stocktwits[dot]com. Read Next: Micron, Samsung, SK Hynix Suffer Drop In DRAM Market Share As China’s CXMT Pulls Ahead Yuvraj Malik has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: TSLA Stock Slips Overnight As Safety Regulator Scrutinizes Cybercab — Retail Fumes Over Event Blackout TSLA Stock Slips Overnight As Safety Regulator Scrutinizes Cybercab — Retail Fumes Over Event Blackout LULU Stock Sinks 18% Overnight: Michael Burry Says Lululemon Is A ‘Trickster’ As He Vows To Buy More Under $100

Snowflake SNOW) shares surged 16% in Thursday’s trading session after the cloud-data leader crushed its Q2 expectations yesterday evening and raised its full-year outlook. More importantly, Snowflake’s growth is accelerating as artificial intelligence drives greater usage of its AI Data Cloud platform, giving investors plenty to like despite the stock’s increasingly lofty valuation. Image Source: Zacks Investment Research Snowflake posted Q2 adjusted EPS of $0.62, handily topping expectations of $0.45 and rising from $0.35 per share in the prior year quarter. Revenue rose 35% year over year to $1.54 billion, also surpassing estimates of $1.47 billion. Even more encouraging was product revenue, which climbed 37% to $1.49 billion, marking Snowflake’s third consecutive quarter of accelerating product-revenue growth. Remaining performance obligations (RPO), representing contracted future revenue, increased 30% YoY to $9 billion, while the number of customers generating more than $1 million in trailing-12-month product revenue jumped 27% to 828. Notably, Snowflake has surpassed top-line estimates in every quarter since it went public in 2020 and has exceeded earnings expectations for nine consecutive quarters, with an average EPS surprise of 22.77% in its last four quarterly reports. Image Source: Zacks Investment Research AI is becoming a meaningful growth catalyst rather than simply a long-term opportunity, with management indicating that AI products accounted for roughly half of Snowflake’s recent growth acceleration. Adoption of its AI coding agent CoCo surpassed 9,100 accounts after adding more than 2,000 during Q2, while CoWork, Snowflake’s agentic workplace offering, reached 5,800 accounts. The company also added 692 net new customers during the quarter. Reflecting this momentum, Snowflake raised its full-year product-revenue forecast to $6.07 billion, or 36% growth, from $5.84 billion and 31% growth previously. For Q3, product revenue is projected between $1.588 billion and $1.593 billion, representing another impressive 37%-38% increase. Snowflake also lifted its full-year non-GAAP operating-margin outlook to 14.5% from 13.5%, showing improving profitability alongside accelerating growth. It's noteworthy that Snowflake's growing enterprise footprint is supported by strategic partnerships with Amazon AMZN), Microsoft MSFT), Alphabet GOOGL), and Nvidia NVDA), helping enterprises deploy increasingly sophisticated data and AI workloads across its platform. Prominent customers have included Capital One COF), Thomson Reuters TRI), Booking Holdings' BKNG) Booking.com, and DraftKings DKNG). The biggest reason investors may be hesitant to chase today's rally is valuation. Even before the Q2 post-earnings surge, SNOW was trading at more than 15X forward sales with a forward P/E multiple above 150X. Those marks are significantly above its Zacks Internet-Software industry averages of around 4X forward sales and 20X forward earnings, respectively. Today's 16% jump only expands that premium on a static-estimate basis, although higher revenue and EPS projections following the strong report should help offset some of the valuation expansion. Image Source: Zacks Investment Research Snowflake’s Q2 results appear strong enough to justify investors' enthusiasm. Accelerating product-revenue growth, rapidly increasing AI adoption, a $9 billion backlog, and raised growth and profitability guidance suggest the company’s fundamental story is getting stronger. While SNOW's premium valuation could make additional near-term upside more difficult following today's sharp rally, investors with a longer-term horizon may still have reason to remain bullish, especially if AI keeps driving faster platform consumption. Supporting that outlook, Snowflake stock currently sports a Zacks Rank #2 (Buy), as upward earnings estimate revisions following such an impressive beat-and-raise quarter could further strengthen its investment case. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Thomson Reuters Corp (TRI) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Booking Holdings Inc. (BKNG) : Free Stock Analysis Report DraftKings Inc. (DKNG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Snowflake Inc. (SNOW) came out with quarterly earnings of $0.62 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +37.78%. A quarter ago, it was expected that this company would post earnings of $0.32 per share when it actually produced earnings of $0.39, delivering a surprise of +21.88%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Snowflake, which belongs to the Zacks Internet - Software industry, posted revenues of $1.55 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 4.91%. This compares to year-ago revenues of $1.14 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Snowflake shares have added about 45.8% since the beginning of the year versus the S&P 500's gain of 11.5%. While Snowflake has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Snowflake was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.53 on $1.57 billion in revenues for the coming quarter and $1.97 on $6.08 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, DocuSign (DOCU), is yet to report results for the quarter ended July 2026. The results are expected to be released on September 3. This provider of electronic signature technology is expected to post quarterly earnings of $1.08 per share in its upcoming report, which represents a year-over-year change of +17.4%. The consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. DocuSign's revenues are expected to be $867.65 million, up 8.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report Docusign Inc. (DOCU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Snowflake Inc. (SNOW) reported $1.55 billion in revenue for the quarter ended July 2026, representing a year-over-year increase of 35.1%. EPS of $0.62 for the same period compares to $0.35 a year ago. The reported revenue represents a surprise of +4.91% over the Zacks Consensus Estimate of $1.47 billion. With the consensus EPS estimate being $0.45, the EPS surprise was +37.78%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Snowflake performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Remaining performance obligations: $9 billion versus $9.48 billion estimated by five analysts on average. Customers with trailing 12-month product revenue greater than $1 million: 828 compared to the 818 average estimate based on two analysts. Revenue- Product revenue: $1.49 billion versus the nine-analyst average estimate of $1.42 billion. The reported number represents a year-over-year change of +36.8%. Revenue- Professional services and other revenue: $54.93 million versus $60.04 million estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change. Non-GAAP product gross profit: $1.11 billion compared to the $1.06 billion average estimate based on seven analysts. Non-GAAP professional services and other revenue gross profit (loss): $-4.24 million versus $1.1 million estimated by five analysts on average. GAAP product gross profit: $1.06 billion versus the two-analyst average estimate of $1.01 billion. GAAP professional services and other revenue gross loss: $-20.73 million versus the two-analyst average estimate of $-14.57 million. View all Key Company Metrics for Snowflake here>>> Shares of Snowflake have returned +1% over the past month versus the Zacks S&P 500 composite's +2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research