Snowflake Inc. (NYSE:SNOW) Surpasses Earnings and Revenue Estimates in Q3 Fiscal 2025

• Snowflake Inc. (NYSE:SNOW) reported earnings per share of $0.20, beating the estimated $0.15, and a revenue of $942 million, surpassing the $899 million estimate.
• The company's revenue saw a 28.3% year-over-year increase, with a significant contribution from the Americas at 79%.
• Snowflake's stock price experienced a 31.1% surge following the announcement, despite a 22.7% decline year-to-date.

Snowflake Inc. (NYSE:SNOW), a prominent player in the cloud computing industry, known for its data warehousing solutions, competes with tech giants like Amazon Web Services and Microsoft Azure. On November 20, 2024, Snowflake reported earnings per share of $0.20, surpassing the estimated $0.15, and achieved a revenue of approximately $942 million, exceeding the estimated $899 million.

In its third-quarter fiscal 2025 results, Snowflake showcased a strong performance with non-GAAP earnings of $0.20 per share, surpassing the Zacks Consensus Estimate by 33.33%. However, this marked a 20% decline compared to the previous year. Despite this, Snowflake has consistently exceeded earnings expectations in three of the last four quarters, with an average earnings surprise of 35.39%.

The company's revenues reached $942.1 million, exceeding the consensus estimate by 4.82% and reflecting a 28.3% year-over-year increase. The revenue distribution was primarily from the Americas, contributing 79%, followed by Europe, the Middle East & Africa (EMEA) with 16%, and Asia, Pacific & Japan (APJ) with 5%. This strong performance led to a 24.77% surge in Snowflake's shares in pre-market trading.

Despite the positive movement, Snowflake's shares have experienced a 22.7% decline year-to-date, contrasting with the Zacks Computer & Technology sector's growth of 27.8%. However, the company's impressive third-quarter performance and raised full-year outlook have reinforced its attractiveness to investors, as highlighted by Kiplinger. Snowflake's stock price surged 31.1% to $169.31, marking its best-ever single-day percentage gain.

Snowflake projected its fiscal 2025 product revenue to reach $3.43 billion, exceeding the previous forecast of $3.36 billion. The company also expanded its customer base by adding 369 new clients, bringing the total to 10,618 by the end of October. In response to these positive developments, at least 14 analysts raised their price targets for Snowflake, with Needham and D.A. Davidson setting their targets at $200, representing over a 55% premium to Snowflake's last closing price.