One-glance verdict
Overvalued
$165.28 our estimate vs market $337.18
Wall Street consensus: $413.29 (150.1% higher than our fair-value estimate)
104% above our estimate, beyond the bull case
Fundamentals snapshot
Snowflake Inc.
SNOW · NYQ · Technology · Software - Application
Current price
$337.18
52-week range
$118.30 - $384.56
Market cap
$116.87B
Balance sheet
Distressed
-172.95x Concerning
Net debt $419.12M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 16.0% last year.
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -48.1% last year — the company lost money on shareholders' equity.
What this company does
Snowflake Inc.
Snowflake provides a "data cloud," which is like a single, secure online warehouse where businesses can store and analyze all of their information. The company makes money by charging customers based on how much they use the service, so its revenue (the total money earned from sales) grows as businesses increasingly rely on data to make decisions and power new artificial intelligence tools.
How the company got here
Snowflake was founded in 2012 by three data-warehousing experts who saw that older database technologies weren't built for the modern internet. They spent two years building a new system specifically for the cloud (services that run on the internet instead of on-premise computers) before launching. The company grew rapidly by running on the major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform. A key moment was its initial public offering (IPO) in 2020, which was the largest ever for a software company at the time, signaling strong investor belief in its new approach to data.
What it actually does
Imagine a giant, super-organized warehouse in the cloud where a business can store all of its data—from sales numbers to customer feedback. Snowflake provides this warehouse, called the AI Data Cloud, which lets companies easily store and analyze huge amounts of information. Unlike a traditional warehouse, multiple teams can access and analyze the data at the same time without slowing each other down. This helps businesses find meaningful insights (trends or patterns in the data), build data-driven applications, and securely share data with their partners.
Product
This is the core of Snowflake's business and makes up the vast majority of its revenue (the money it brings in). Companies pay based on how much they use the platform, similar to how you pay for electricity—the more data you store and the more analysis you run, the more you pay. This is known as a consumption-based model. This segment allows customers to consolidate all their data in one place and use Snowflake's tools to analyze it, build applications, and even use artificial intelligence to solve business problems.
Professional Services & Other
This is a much smaller part of the company's business, representing a small fraction of total revenue. This segment includes fees for services that help customers get the most out of the main product. Think of it like a premium customer support and consulting team. They might help a new customer set up their data warehouse, train their employees, or help them design complex data analysis projects. While it's not the main money-maker, it helps ensure customers are successful and continue using the core product.
What management is betting on now
Snowflake is heavily focused on becoming the central platform for artificial intelligence (AI) and machine learning. The strategy is to encourage companies to not only store their data on Snowflake but also to build and run their AI models directly on the platform, rather than moving the data somewhere else. They are also expanding tools for developers to build data-intensive applications directly on Snowflake, making the platform stickier and more essential to a customer's operations. Another key priority is growing its Data Marketplace, which allows different companies to securely share and buy data from each other, creating a network effect where more users make the platform more valuable for everyone.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q3
$88.27M
FY2025 Q4
$421.45M
FY2026 Q1
$183.38M
FY2026 Q2
$58.23M
FY2026 Q3
$113.61M
FY2026 Q4
$765.09M
FY2027 Q1
$232.77M
FY2027 Q2
$83.80M
Revenue
$1.55B
Net income
$-191.72M
Diluted EPS
-0.55
Operating cash flow
$91.36M
Free cash flow
$83.80M
Fetching…
Sources
Revenue
$1.39B
Net income
$-295.57M
Diluted EPS
-0.86
Operating cash flow
$243.22M
Free cash flow
$232.77M
Fetching…
Sources
Revenue
$1.28B
Net income
$-309.55M
Diluted EPS
-0.90
Operating cash flow
$781.15M
Free cash flow
$765.09M
Fetching…
Sources
Revenue
$1.21B
Net income
$-293.96M
Diluted EPS
-0.87
Operating cash flow
$137.52M
Free cash flow
$113.61M
Fetching…
Sources
Revenue
$1.14B
Net income
$-298.02M
Diluted EPS
-0.89
Operating cash flow
$74.90M
Free cash flow
$58.23M
Fetching…
Sources
Revenue
$1.04B
Net income
$-430.09M
Diluted EPS
-1.29
Operating cash flow
$228.37M
Free cash flow
$183.38M
Fetching…
Sources
Revenue
$986.77M
Net income
$-327.47M
Diluted EPS
-0.98
Operating cash flow
$432.73M
Free cash flow
$421.45M
Fetching…
Sources
Revenue
$942.09M
Net income
$-324.28M
Diluted EPS
-0.98
Operating cash flow
$101.71M
Free cash flow
$88.27M
Fetching…
Sources
Is it cheap or expensive?
Fair value $165.28 vs current price $337.18
Wall Street consensus is the average analyst price target: $413.29 (150.1% higher than our fair-value estimate).
Our most-likely fair value is $165.28 a share — about 51.0% below today's price of $337.18, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $419.1M. Interest coverage -173.0x.
Net debt
$419.12M
Interest coverage
-172.95x
Snowflake Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
SNOW
BASELINE
Snowflake Inc.
Total debt $2.76B Interest coverage -172.95x This is the baseline the peer rows are being compared against.
Total debt $1.28B Interest coverage -4.01x Neither company has much profit cushion over interest right now.
Total debt $211.40M Interest coverage 407.50x This peer still has a real interest-payment cushion, while SNOW does not.
Total debt $3.53B Interest coverage -23.64x Neither company has much profit cushion over interest right now.
Total debt $55.01M Interest coverage -43.79x Neither company has much profit cushion over interest right now.
What you should know
The case for and against SNOW
2 Rewards
1 Risk
Rewards
-
Revenue grew 16.0% last year.
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -48.1% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
113.39x
P/B
54.78x
P/S
21.50x
EV/EBITDA
-115.07x
PEG ratio
8.51x
Profitability
How much profit each dollar creates
Gross margin
67.0%
Operating margin
-17.0%
Net margin
-20.1%
ROE
-48.1%
ROA
-9.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.29x
Current ratio
0.94x
Quick ratio
0.83x
Total debt
$2.76B
Total cash
$2.34B
Growth
How the business has been compounding
Revenue TTM
$5.43B
Revenue 5Y CAGR
40.0%
EPS TTM
-3.17
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.25B
Free CF TTM
$1.12B
FCF margin
20.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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