Why did snow stock fall after the guidance update?

Shares slipped about 2% after-hours because the outlook, while above estimates, was not strong enough to re-rate the stock higher. Investors wanted a bigger beat and clearer margin progress. Broader software sentiment is also selective, so modest guidance can trigger profit-taking even when headline numbers look fine.

What is Snowflake’s FY27 and Q1 revenue outlook?

Management guided fiscal 2027 product revenue to $5.66 billion, slightly above an estimated ~$5.50 billion. For Q1, product revenue is expected at $1.26–$1.27 billion. The market welcomed the direction but wanted more upside and detail on how AI partnerships and the Observe deal translate into near-term consumption.

How do OpenAI and Anthropic partnerships affect Snowflake earnings?

These multi-year deals should add workloads as customers build and scale AI applications. More training and inference on Snowflake’s platform can lift consumption, supporting product revenue. The key is timing: investors want proof that usage gains are material and sustained, which would strengthen Snowflake earnings power over the next few quarters.

Is Snowflake stock expensive on current metrics?

On trailing data, Snowflake trades at a premium. Price-to-sales is about 13.3 and price-to-free-cash-flow is near 74.9, with negative EPS. That valuation assumes strong growth and improving margins. To justify it, Snowflake needs consistent product revenue beats, visible AI-driven adoption, and steady operating leverage over time.

What are the top risks for snow stock now?

Key risks include slower cloud budgets, delayed AI adoption, integration risk from the Observe acquisition, and intense competition. High stock-based compensation and rich valuation add sensitivity to any growth hiccup. If margins lag or AI workloads scale slower than expected, the stock could stay range-bound or retrace.

Global Market Insights

SNOW Stock Today: February 26 – AI Deals Lift Outlook, Shares Slip

ByHuzaifa Zahoor February 26, 2026February 26, 2026

Snow stock is in focus after Snowflake set fiscal 2027 product revenue at $5.66 billion, topping an estimated ~$5.50 billion, and guided Q1 to $1.26–$1.27 billion. For snow stock watchers, SNOW slipped about 2% after-hours as the update landed near recent expectations. Management highlighted AI-driven demand, multi-year work with OpenAI and Anthropic, and the $600 million Observe acquisition. Investors are weighing these growth drivers against margin guidance and software sentiment in the US today. Below, we break down the outlook, valuation, and the key markers to track into Q1.