Snowflake Reports 30% Product Revenue Growth to $1.23B with 11% Margin
In Q4, Snowflake delivered $1.23B in product revenue, up 30% year-over-year, an 11% operating margin versus a 7% estimate and EPS of $0.32, while guiding to higher FY27 growth. Goldman Sachs retained its Buy rating but cut the price target to $216 after noting Cortex Code’s 4,400 users since launch.
1. Q4 Financial Results
Snowflake reported $1.23 billion in product revenue, a 30% year-over-year increase that topped consensus by 2%. Total revenue reached $1.284 billion, gross profit was $921 million (72% margin), operating income was $139 million (11% margin), and earnings per share were $0.32, up 4%.
2. Stock Performance and Guidance
Shares fell 22% year-to-date despite rising 2.3% over the past month following the earnings beat. Management guided to accelerated product revenue growth in fiscal 2027, reinforcing expectations for sustained AI-driven adoption.
3. Goldman Sachs Analysis and Cortex Code
Goldman Sachs maintained its Buy rating but trimmed the price target to $216 from $246 after reviewing the earnings. Analysts highlighted the launch of Cortex Code, a context-aware AI coding assistant with over 4,400 users since November 2025, as a key growth driver.