- Snowflake has raised its full-year product revenue forecast to $4.40 billion from the previous $4.33 billion, above the estimated $4.34 billion.
- The company has increased its projected adjusted operating margin to 9%, compared to the previous 8%.
- For the third quarter, Snowflake expects product revenue between $1.13 billion, surpassing the estimate of $1.12 billion.
- In the second quarter, Snowflake reported a total revenue of $1.14 billion, marking a 32% year-over-year increase, better than the estimated $1.09 billion.
- Second-quarter product revenue was $1.09 billion, a 32% increase year-over-year, exceeding the estimate of $1.04 billion.
- Professional services and other revenue reached $54.5 million, showing a 38% year-over-year rise, against an estimate of $46 million.
- Loss per share improved to 89 cents from 95 cents year-over-year.
- The net revenue retention rate was 125%, slightly below the 127% from the previous year, but above the estimate of 124%.
- The current remaining performance obligation stands at $6.9 billion, a 33% increase year-over-year, beating the estimate of $6.78 billion.
- Snowflake reported an adjusted gross margin consistent at 73%, surpassing the expected 72.3%.
- The adjusted diluted earnings per share for the second quarter were 35 cents, up from 18 cents year-over-year, and ahead of the 27-cent estimate.
- Analyst ratings include 46 buys, 7 holds, and 2 sells.
Snowflake on Smartkarma
Analysts on Smartkarma are closely watching Snowflake’s strategic moves in the AI space. Baptista Research‘s report, “Snowflake’s $250M “Crunchy” Bet: How Two Smart Acquisitions Are Fueling Its AI War With Databricks!“, highlights Snowflake’s acquisition of Crunchy Data, positioning itself in the AI competition. The acquisition of Crunchy Data, a PostgreSQL-based database company, for $250 million signals a fierce battle for enterprise customers looking to harness AI with their data.
Furthermore, Baptista Research‘s analysis, “Snowflake Inc.: Expansion in the Federal Government Sector & Critical Developments!”, focuses on Snowflake Inc.’s Q1 FY2026 results. Snowflake reported robust revenue growth, reaching $997 million in product revenue, demonstrating a 26% year-over-year increase. The company’s emphasis on data management and AI positions it to empower enterprise transformations through data-centric solutions, attracting positive sentiment from analysts on Smartkarma.
A look at Snowflake Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at the Smartkarma Smart Scores for Snowflake, the company seems to have a positive long-term outlook. With high Momentum and Growth scores, Snowflake appears to be well-positioned for future growth and success. Its Resilience score also indicates that the company possesses strength and stability to navigate challenges. However, with lower scores in Value and Dividend, potential investors may need to consider the company’s valuation and dividend-paying status before making investment decisions.
Snowflake Inc., a software solutions provider, focuses on developing database architecture, data warehouses, query optimization, and parallelization solutions. With a global customer base, Snowflake is positioned to capitalize on its high Momentum and Growth scores, signaling a promising future ahead despite its lower Value and Dividend scores. Investors should carefully assess these factors before forming their investment strategies for Snowflake.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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