Why did SNOW consistently outperform earnings forecasts in 2025?

Snowflake's consistent outperformance in earnings forecasts in 2025 can be attributed to several key factors:

1. **Strong Revenue Growth**: Snowflake experienced significant year-over-year growth in product revenue, reaching $943.3 million in Q4, up 28% from the previous year. The company's remaining performance obligations also grew by 33% year-over-year, totaling $6.9 billion.
2. **Healthy Customer Base and Retention**: Snowflake reported a net revenue retention rate of 126% as of January 31, 2025. The company has a substantial number of customers with trailing 12-month product revenue greater than $1 million, indicating strong customer loyalty and repeat business.
3. **Strategic Product Innovations**: Snowflake has been aggressively expanding its product portfolio, introducing over 400 new product capabilities. The company's focus on AI integration through partnerships has positioned it as a leader in AI-enhanced data solutions.
4. **Market Position and Competitive Advantage**: Snowflake's cloud-native platform and focus on ease of use have made it an attractive option for organizations modernizing their data infrastructure. The company's ability to aggregate data from multiple sources and provide flexible consumption-based plans has given it a competitive edge over other cloud providers.

In summary, Snowflake's strong revenue growth, healthy customer base, strategic product innovations, and market position have contributed to its consistent outperformance in earnings forecasts in 2025.