Core Insights - Snowflake reported strong quarterly results but experienced a significant stock sell-off, dropping over 11% after the earnings release [1][3]. Financial Performance - For Q3 of fiscal 2026, Snowflake achieved non-GAAP earnings per share of $0.35 on sales of $1.21 billion, surpassing analyst expectations of $0.31 per share on $1.18 billion in sales [1]. - Product revenue increased by 29% year-over-year to $1.16 billion, while overall revenue grew approximately 28% year-over-year [6]. - Remaining performance obligations (RPO) rose 37% annually to $7.88 billion, and the company added 615 new customers during the quarter [6]. Strategic Developments - Snowflake entered a new $200 million multi-year contract with Anthropic, enhancing the integration of Anthropic's Claude AI with Snowflake's Cortex AI platform [2][4]. - The company reached its $100 million AI revenue run rate target one quarter earlier than anticipated, indicating strong growth in its AI segment [4]. Market Reaction - Despite the positive earnings and partnership news, investors reacted negatively, leading to a stock decline of 11.4% [3]. - Concerns arose from a GAAP operating loss of $329.5 million and high expenditures on sales and marketing, which overshadowed the revenue growth [7]. - Forward guidance for product revenue was set between $1.195 billion and $1.2 billion for the current quarter, which, while above analyst estimates, did not meet the expectations of some shareholders [8].

PresentationKarl KeirsteadUBS Investment Bank, Research Division Okay. Let's get started. Day 4. A ton of familiar faces given that I've been looking at you and you've been looking at me for 4 days now. And you guys should feel good that this many people are here on day 4 after I know because I saw them, many of them were up quite late at the Thirsty Camel bar last night. So heroics to you, guys. I love having Snowflake here. Sridhar and Brian. And, Brian, by the way, congratulations on the role. Nice to ha ...

Core Insights - Snowflake (NYSE: SNOW) reported third-quarter earnings that exceeded Wall Street expectations [1] Financial Performance - The company posted results that topped analyst estimates, indicating strong financial performance in the third quarter [1]

Core Insights - Snowflake's stock has declined over 10% following a disappointing margin forecast despite exceeding analysts' expectations for both earnings and revenue [1][7] - The company reported adjusted earnings of $0.35 per share and a revenue increase of 29% year-over-year to $1.21 billion in the third quarter, surpassing analyst estimates [1][7] Financial Performance - Operating income was reported at $131.3 million, with an operating margin of 11%. However, the company anticipates a decrease to a 7% operating margin for the fourth quarter, which is below the previously guided 9% margin [2][5] - The mean target for Snowflake's shares is approximately $280, with 19 out of 21 analysts issuing "buy" ratings [5] Market Reactions and Analyst Opinions - Concerns have arisen regarding Snowflake's AI-related spending, with analysts from Oppenheimer suggesting that new investments in AI could impact short-term profits. However, they maintain an "outperform" rating with a price target of $295 [3][4] - Despite the recent stock decline, Snowflake's shares have increased over 50% in 2025, indicating strong market interest [6]

Core Insights - Snowflake (SNOW) reported third-quarter fiscal 2026 non-GAAP earnings of 35 cents per share, exceeding the Zacks Consensus Estimate by 12.90% and up from 20 cents per share in the same quarter last year [1] - Revenues reached $1.21 billion, surpassing the consensus mark by 2.68% and reflecting a 29% year-over-year increase [1] Revenue Breakdown - Product revenues were $1.16 billion, accounting for 96% of total revenues, with a year-over-year increase of 29% [3] - Professional Services and other revenues totaled $54.5 million, contributing 4% to total revenues, marking a 30% year-over-year increase [3] - Revenue contributions by region included 78% from the Americas, 16% from EMEA, and 6% from APJ [1] Customer Metrics - The net revenue retention rate for existing customers was 125% [4] - The number of customers grew by 20% year-over-year, reaching 12,621 [4] - There are 688 customers with trailing 12-month product revenues exceeding $1 million, a 29% increase year-over-year [4] Margin and Expense Analysis - Non-GAAP gross margin contracted by 30 basis points year-over-year to 73%, while product gross margin was 76% [5] - Research & development expenses as a percentage of revenues decreased by 290 basis points year-over-year to 21% [5] - Operating margin expanded by 460 basis points year-over-year to 10.8% [6] Balance Sheet and Cash Flow - As of October 31, 2025, Snowflake had cash, cash equivalents, and short-term investments of $3.36 billion, down from $3.59 billion as of July 31, 2025 [7] - Remaining performance obligations at the end of the third quarter were $7.88 billion, a 37% increase year-over-year [7] - Adjusted free cash flow for the quarter was $136.4 million [7] Future Guidance - For Q4 fiscal 2026, Snowflake expects product revenues between $1.195 billion and $1.2 billion, indicating a year-over-year growth of 27% [8] - For fiscal 2026, the company anticipates product revenues of $4.446 billion, reflecting 28% year-over-year growth [8] - Expected operating margin for Q4 is 7%, with a product gross margin of 75% and a free cash flow margin of 25% for fiscal 2026 [8]

Core Insights - Snowflake Inc reported strong third-quarter results with revenue of $1.21 billion, surpassing analyst expectations of $1.18 billion, and adjusted earnings of 35 cents per share, exceeding estimates of 31 cents per share [1][2] Financial Performance - The company expects fourth-quarter product revenue to be between $1.195 billion and $1.20 billion, reflecting a year-over-year increase of approximately 27% [3] - Adjusted operating margin is projected to be 7% in the fourth quarter, a decrease from 11% in the third quarter, which has negatively impacted share prices [3] Market Reaction - Following the earnings announcement, Snowflake shares fell by 11.2%, trading at $235.20 [3] Analyst Ratings and Price Targets - Keybanc analyst Eric Heath maintained an Overweight rating and raised the price target from $275 to $285 [5] - Baird analyst William Power also maintained an Outperform rating, increasing the price target from $260 to $270 [5] - Other analysts, including those from Cantor Fitzgerald, Morgan Stanley, Wells Fargo, Scotiabank, Canaccord Genuity, and Stifel, have similarly maintained positive ratings while raising their price targets, with the highest target reaching $299 [5]

Summary of Snowflake's Conference Call Company Overview - **Company**: Snowflake - **Industry**: Data Cloud and Analytics Key Points and Arguments 1. Product Development and Market Strategy - Snowflake's main objectives for 2025 include accelerated product velocity and global sales team effectiveness [3][4] - The company has successfully developed products like Snowflake Intelligence, which enhances user experience and value creation [4][5] - Acquisitions, such as DataVolo, have contributed positively to Snowflake's product offerings [4] 2. AI and Data Utilization - The era of AI is seen as the "industrialization of thought," where language models can execute tasks traditionally done by humans [13] - High-quality data is essential for AI products to function effectively, and Snowflake positions itself as an AI-ready platform [15][16] - The demand for Snowflake's services is driven by the need for accessible and transformable data [16] 3. Migration Trends - Migration activity to Snowflake has been strong, particularly in sectors like financial services and telecommunications [26][27] - Quarterly results may show variability due to the timing of customer migrations, which are not aligned with Snowflake's reporting periods [27] - The company reported a 29% year-over-year revenue growth, with a slight impact from a hyperscaler outage [28] 4. Performance Improvements - Snowflake is focused on enhancing query performance through both hardware advancements and software improvements [36][38] - The introduction of a new generation of warehouses aims to deliver performance improvements without significant price increases [38] 5. AI Integration in Products - Snowflake is developing AI-driven tools, such as Cortex Code, to optimize user experience and streamline complex tasks [40][41] - AI is expected to accelerate migration processes, making them faster and safer [41][43] 6. Competitive Landscape - The rise of SaaS companies venturing into data analytics is noted, with Snowflake maintaining its competitive edge through partnerships and specialized offerings [48] - Snowflake does not view the market as a zero-sum game, believing in the potential for mutual value creation through collaborations [48] 7. Future Developments - Snowflake is working on interactive analytics to meet the needs of customers requiring low-latency data access [50][51] - The company is exploring partnerships with application development platforms to enhance user experience while maintaining data governance [60][61] Additional Important Insights - The importance of incremental transformation in data management is emphasized, advising against mass changes that could introduce risks [21][22] - Snowflake's structural advantages in cloud computing are expected to compound over time, reinforcing its market position [23] - The company is committed to responsible growth while leveraging AI to improve operational efficiency [55]

[music] Good Thursday morning at Wall Street. I'm Yahoo Finance executive editor Brian [music] Sazi. This is opening bid. I'm feeling it today, friends. So much to get to and so little time. Salesforce CEO Mark Beni off may still be talking about Agent Force on his earnings call that began last night. He was that excited about this stuff. way more than Wall Street, which pushed the stock to a record low valuation ahead of the better thanex expected report [music] last night. Snowflake's results, meanwhile, ...

Market Overview - All three major indices opened mostly flat, with the Dow up about 0.1%, NASDAQ up about 0.2%, and S&P 500 also showing slight gains [1] - Jobless claims came in lower than expected, and November layoffs were less than in October, contributing to market stability [1] Salesforce - Salesforce reported better-than-expected results, but the stock is still down over 27% year-to-date, trading at a record low valuation prior to the report [1][10] - The company highlighted its AI tool, Agent Force, which has seen a significant increase in paid deals, now totaling 9,500, up from 3,500 in the previous quarter [11][12] Snowflake - Snowflake's shares fell about 9% at the open due to a disappointing outlook, with a slower product revenue growth forecast for the fourth quarter [1][14] - Despite the drop, 13 brokerage firms raised their price targets on Snowflake, indicating a generally optimistic outlook from analysts [15] Nvidia - Nvidia's CEO Jensen Wong has been actively promoting the company, appearing on podcasts and engaging with lawmakers, which may enhance brand visibility [2][4] - The company is facing increasing competition from firms like Google and Amazon, which are also developing their own chips [2][3] - Nvidia's stock was up nearly 0.8% following Wong's public appearances, reflecting investor interest in the company's AI capabilities [1] Google - Google shares have risen 16% since the launch of its Gemini 3 model on November 18, indicating strong market reception [5] - The company is positioned well in both software and hardware sectors, potentially benefiting from its dual focus [6] C3 AI - C3 AI reported a 49% growth in bookings, with its federal business growing 89% year-over-year, indicating strong demand for enterprise AI solutions [18][19] - The company is focusing on key use cases such as industrial asset performance and supply chain optimization to drive growth [22] - C3 AI's new CEO emphasized the importance of demonstrating economic value to customers to secure enterprise-wide agreements [21][24]

Core Insights - Snowflake Inc's shares have dropped 10% to $238.57 following disappointing Q4 operating margin guidance, overshadowing a strong Q3 earnings and revenue report and a $200 million AI deal with Anthropic [1] Group 1: Stock Performance - The stock is trading near late-November lows after a previous attempt to recover from a pullback below $230 on November 21, following a three-year high of $280.67 on November 3 [3] - Despite the recent decline, Snowflake's stock remains 54% higher year to date [3] Group 2: Analyst Reactions - Eight analysts have raised their price targets for Snowflake, with Wells Fargo and Scotiabank setting targets at $290 [2] - A mix of recommendations exists among covering brokerages, with six firms maintaining a "hold" or "strong sell" rating [2] Group 3: Volatility Metrics - Snowflake's Schaeffer's Volatility Scorecard (SVS) is at 79 out of 100, indicating that the stock has experienced higher volatility than what its options pricing suggests [4]