Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 18 Aug, 25 | SNOW | Buy | USD 196.54 | USD 207.0 | USD 217.0 | 9 days | Closed |
13.02%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Snowflake Inc. provides a cloud-based data platform for various organizations in the United States and internationally. Its platform offers Data Cloud, which enables customers to consolidate data into a single source of truth to drive meaningful business insights, build data-driven applications, and share data and data products. The company was formerly known as Snowflake Computing, Inc. and changed its name to Snowflake Inc. in April 2019. Snowflake Inc. was incorporated in 2012 and is based in Bozeman, Montana.
Customer Expansion: Customers contributing over USD 1 million in trailing 12-month revenue increased 27% year-over-year, from 477 in Q1 FY25 to 606 in Q1 FY26
Revenue Growth: Product revenue grew 26% year-over-year, rising from approximately USD 791.1 million in Q1 FY25 to USD 996.8 million in Q1 FY26
Free Cash Flow Margin Decline: Free cash flow margin fell from 24% in Q1 FY25 to 18% in Q1 FY26, indicating reduced cash efficiency despite higher revenue
GAAP Operating Loss: Operating loss widened from USD 226.9 million in Q1 FY25 to USD 447.3 million in Q1 FY26, a deterioration of nearly 97% year-over-year
Snowflake’s heavy reliance on stock-based compensation and widening GAAP operating losses may pressure long-term profitability despite strong revenue growth and customer expansion
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 196.54 | 177.5 | 207.0 | 217.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Snowflake Reports Strong First Quarter Fiscal 2026 Performance: Snowflake Inc. (NYSE: SNOW), the AI Data Cloud company, announced its financial results for the first quarter of fiscal 2026, ended April 30, 2025. The company reported total revenue of USD 1.0 billion, reflecting 26% year-over-year growth. Product revenue accounted for USD 996.8 million of this figure, also representing a 26% increase compared to the prior year.
Customer Growth and Market Penetration: As of April 30, 2025, Snowflake reported 606 customers generating more than USD 1 million in trailing 12-month product revenue, marking a 27% increase from the prior year. Additionally, the company now serves 754 Forbes Global 2000 customers, up 4% year-over-year, highlighting the platform’s continued adoption across large enterprises.
Strong Net Revenue Retention and Remaining Performance Obligations: Snowflake maintained a net revenue retention rate of 124%, showcasing its ability to expand existing customer relationships. The company also reported remaining performance obligations (RPO) of USD 6.7 billion, representing 34% year-over-year growth, underlining a healthy demand pipeline and revenue visibility.
Profitability and Operating Metrics: On a GAAP basis, Snowflake recorded a product gross profit of USD 711.5 million with a margin of 71%. Non-GAAP product gross profit stood higher at USD 754.1 million, reflecting a 76% margin. While the company reported a GAAP operating loss of USD 447.3 million, non-GAAP operating income reached USD 91.7 million, corresponding to an operating margin of 9%.
Cash Flow Generation: Net cash provided by operating activities totaled USD 228.4 million, representing 22% of revenue. Free cash flow for the quarter was USD 183.4 million, while adjusted free cash flow reached USD 206.3 million, equating to 20% of revenue. These figures highlight Snowflake’s improving efficiency and its ability to translate growth into positive cash generation.
Financial Guidance for Fiscal 2026: Looking ahead, Snowflake provided guidance for the second quarter of fiscal 2026, projecting product revenue between USD 1.035 billion and USD 1.040 billion, reflecting 25% year-over-year growth. For the full fiscal year, the company expects product revenue of approximately USD 4.325 billion with a 25% growth rate, a product gross margin of 75%, and adjusted free cash flow margin of 25%. Non-GAAP operating margin is forecasted at 8% for both Q2 and the full year.
CEO Commentary: Sridhar Ramaswamy, CEO of Snowflake, stated that the company’s mission is to empower enterprises through data and AI, with a focus on platform usability, accessibility, and enterprise-grade performance. He emphasized the significant opportunities ahead as Snowflake continues to scale its offerings across the data lifecycle.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Snowflake Inc (NYSE: SNOW) at the current market price of USD 196.54, as on August 18, 2025 at 7:15 am PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| SNOW Snowflake Inc. |
5.14 2.38% | 221.43 | - | 175.44 | 24.61 | 12.96 | 23.13 | -63.515 |
| CRM Salesforce.com Inc |
-1.18 0.46% | 256.96 | 100.89 | 27.47 | 7.42 | 4.34 | 7.44 | 26.81 |
| SAPGF SAP SE |
3.16 1.31% | 244.47 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
3.42 1.42% | 244.84 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| INTU Intuit Inc |
9.21 1.39% | 669.99 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 18,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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