Snowflake(SNOW) The Motley Fool·2025-02-26 22:57Core Insights - Snowflake's fiscal 2025 fourth-quarter financial report showed strong revenue growth despite a decline in adjusted earnings per share, indicating resilience in its business model [2][3]. Financial Performance - Revenue for Q4 2025 reached 774.7 million in Q4 2024, surpassing expectations [2][3]. - Adjusted earnings per share (EPS) were 0.35 in Q4 2024, but still better than analysts' forecasts [2][3]. - Adjusted free cash flow increased by 30% to 324.3 million year-over-year [2]. - The net revenue retention rate was 126%, a decrease of 5 percentage points from the previous year, but still indicating solid customer spending growth [2][4]. Customer Metrics - Snowflake ended the quarter with 580 customers spending at least $1 million annually, a 28% year-over-year increase, contributing to a total customer count exceeding 11,000 [4]. Future Outlook - For Q1 of fiscal 2026, Snowflake anticipates product revenue growth of 21% to 22% and an adjusted operating margin of 5% [5]. - The company projects a 24% increase in product revenue for the entire fiscal 2026 [5]. - Snowflake expects its product revenue growth rate to accelerate throughout fiscal 2026, driven by AI adoption among customers [7]. Market Reaction - Following the earnings report, Snowflake's shares rose approximately 10% in early after-hours trading, reflecting positive market sentiment despite the decline in adjusted EPS [6].