- Snowflake’s (SNOW) stock rose 10.05% to $182.90 after hours as Q4 earnings of $0.30 per share beat the $0.18 consensus by $0.12, with revenues up 27.4% to $986.77 million versus $956.9 million expected, and product revenue hitting $943.3 million, up 28% year-over-year.
- CEO Sridhar Ramaswamy highlighted a $6.9 billion RPO and 126% net revenue retention rate among 11,000+ customers, with Q1 product revenue guidance of $955 – $960 million (5% operating margin) and FY26 at $4.28 billion (8% margin) driving the rally.
- The company’s strong Q4 and optimistic outlook underscore its leadership in cloud data and AI, delivering efficiency and growth, as the $16.71 share jump from $166.20 reflects market confidence in its scalable, trusted platform.
Snowflake Inc.’s (SNOW) stock jumped $16.71, or 10.05%, to $182.90 in after-hours trading Wednesday, a surge propelled by Q4 financials that smashed Wall Street expectations, with earnings of $0.30 per share topping the $0.18 consensus by $0.12 and revenues climbing 27.4% year-over-year to $986.77 million against a $956.9 million forecast. The cloud-based data storage titan’s product revenue hit $943.3 million, up 28% from last year, while its net revenue retention rate as of January 31, 2025 reached 126%, signaling robust customer loyalty and expansion—metrics that CEO Sridhar Ramaswamy hailed as evidence of Snowflake’s pivotal role in the data and AI landscape, serving over 11,000 clients. The company’s upbeat Q1 outlook – projecting product revenue of $955 – $960 million and a 5% non-GAAP operating margin – and FY26 guidance of $4.28 billion in product revenue with an 8% margin further fueled the after-hours rally, spotlighting its growth trajectory.
Snowflake’s platform, a linchpin for enterprises managing vast data troves in the cloud, delivered a $6.9 billion remaining performance obligation (RPO), reflecting a hefty backlog of future revenue that underscores its sticky, scalable model in a market where AI and analytics demand is surging. The 10.05% stock jump mirrors investor confidence in Snowflake’s ability to outpace rivals like Databricks or cloud giants like Amazon’s AWS, leveraging its fully managed data warehouse to drive efficiency—a strength Ramaswamy touted as unmatched among its 11,000-plus customer base. The Q4 revenue beat of $986.8 million, just shy of $1 billion, and the $943.3 million product haul highlight a business firing on all cylinders, even as the $0.30 EPS gain signals disciplined cost control alongside topline growth.
Ramaswamy’s claim of Snowflake as the “most consequential data and AI company” rests on its 27.4% revenue leap and a 126% retention rate, numbers that paint a picture of a firm not just riding the AI wave but steering it, with, again, forecasts of $955 – $960 million for Q1 and $4.28 billion for FY26 suggesting sustained momentum. The after-hours spike to $182.90 reflects a market buying into this vision, seeing beyond the $956.9 million consensus to a platform poised to dominate end-to-end data lifecycles. With a market cap nudging $55 billion, Snowflake’s Q4 prowess and forward guidance cement its status as a cloud data powerhouse, balancing growth and margins in a tech arena where every earnings beat counts double.
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