Snowflake Inc.

SNOW
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.3B
Q4 FY2026 · +30% YoY
TTM ROIC
10%
FY2026 · Non-GAAP NOPAT (Non-GAAP operating income × (1 - 21% tax rate)) / Invested Capital (Total Assets - Cash - Non-interest-bearing CL) · WACC ~10% · Moat spread +0pp
DCF Fair Value
$165
Base case · WACC 10% · Terminal 6% · -2.9% vs. current price

Financial Snapshot

ticker: SNOW step: 04 generated: 2026-05-13 source: quick-research

Snowflake Inc. (SNOW) — Financial Snapshot

Note: Snowflake's fiscal year ends January 31. FY2024 = Feb 2023 – Jan 2024.

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY
Revenue $2.07B $2.81B $3.63B +29%
Product Revenue ~$1.94B ~$2.67B ~$3.44B +29%
Non-GAAP Gross Margin ~66% ~68% ~69%
GAAP Net Income ~-$0.8B ~-$0.8B ~-$1.0B (SBC-driven)
Non-GAAP Operating Margin ~5% ~8% ~10% improving

FY2026 (ended Jan 2026): Product revenue $4.72B (+30% YoY); Q4 FY2026 product revenue $1.23B (+30% YoY). RPO $9.77B (+42% YoY). NRR 125%. Snowflake Intelligence reached 2,500 accounts in first 3 months — fastest product ramp in company history. 9,100+ customers using AI features.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow $1.22B (43% of revenue)
Free Cash Flow $1.12B (40% of revenue)
Capital Expenditures ~$100M
Cash & Equivalents ~$3.7B
Total Debt ~$2.3B (convertible notes)

FCF margins are unusually high (~40%) relative to GAAP losses, because SBC (~30%+ of revenue) adds back to operating cash flow. Non-GAAP profitability is real but GAAP losses remain large. Net cash positive. FY2026 FCF margins likely ~20–25% after strategic acquisitions (Observe $596M, Crunchy Data $165M).

Key Ratios (approximate)

  • P/E: ~85x (non-GAAP FY2027E) | EV/Sales: ~10–11x | FCF Yield: ~2%
  • Revenue Growth (TTM): ~29–30% | Non-GAAP Operating Margin: ~10–12%

Growth Profile

Snowflake compounded from $2.07B (FY2023) to $4.72B product revenue (FY2026) — roughly doubling in 3 years — but growth decelerated from 69% (FY2023) to 29% (FY2025) to 30% (FY2026 re-acceleration). The re-acceleration in FY2026 (+30% after slowing) and 42% RPO growth are the key bull signals. Heavy SBC (~30% of revenue) keeps GAAP losses large, but the consumption model drives strong operating cash flow. AI product ramps (Cortex, Snowflake Intelligence) are the forward growth drivers.

Forward Estimates

  • FY2027: Management guiding $5.66B product revenue (+27% YoY); Snowflake Intelligence + Cortex AI scaling
  • RPO $9.77B: ~2x forward revenue — provides multi-year visibility
  • NRR 125%: organic consumption growth from existing base
  • Analyst median PT: ~$286 (+60–66% upside from ~$155–170); 85% Buy consensus (52 analysts)
  • Strategic acquisitions: Observe ($596M, AI observability), Crunchy Data ($165M, PostgreSQL) adding capabilities

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $SNOW.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/snow/financials/md · → thesis · → memo