Is SNOW's Q4 2025 performance a sign of sustained growth?


Aime
Snowflake's Q4 2025 performance indicates a sustained growth trajectory, despite some challenges. Here's an analysis based on the key metrics:
- Revenue Growth: Snowflake reported a total revenue of $986.77 million for Q4 2025, marking a 27.37% year-over-year growth1. This surpasses the expected revenue of $956.9 million, indicating a robust demand for Snowflake's products.
SNOW Net Income YoY, Total Revenue YoY...
- Product Revenue Growth: Within Q4, Snowflake's product revenue reached $943.3 million, reflecting a 28% year-over-year increase23. This growth is particularly notable as it outpaces the overall revenue growth, suggesting a strong performance from Snowflake's core offerings.
- Customer Expansion: Snowflake ended the quarter with 580 customers spending at least $1 million annually, representing a 28% year-over-year growth3. This indicates a successful customer retention strategy and the ability to increase spending from existing customers.
- Remaining Performance Obligations (RPO): The RPO stood at $6.9 billion, marking a 33% year-over-year increase23. This metric highlights the company's future revenue potential as it reflects the cumulative amount of customer contracts that have yet to be recognized.
- Financial Performance: While Snowflake reported a net loss of $325.72 million and a diluted EPS of -$0.99 for the quarter4, the company's revenue outperformance and growth prospects suggest that these losses may be temporary or related to strategic investments.
- Market Reaction and Analyst Confidence: Snowflake's stock surged by nearly 9% following the earnings release as analysts lifted their price targets5. This positive market reaction, along with the company's optimistic fiscal 2026 guidance, reflects confidence in Snowflake's growth prospects.
In conclusion, Snowflake's Q4 2025 performance demonstrates sustained growth, driven by robust revenue growth, customer expansion, and positive market sentiment. While there are financial losses, the company's strategic positioning and growth metrics suggest a promising outlook for the future.
Source:
1.
SNOW Revenue Growth Rate, Net Income Growth Rate, Diluted EPS Growth Rate in Fiscal 2025 Q4
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