Snowflake Slumps 26% YTD Despite $1.25B Q4 Forecast and OpenAI Partnership
Snowflake forecasts Q4 revenue of $1.25 billion versus $986.8 million year-over-year and a $0.10 per-share loss compared with prior $0.30 profit, backed by 125% net revenue retention and a new OpenAI partnership. Analysts lowered price targets to an average of $247 as shares slump 26% year-to-date.
1. Q4 Earnings Estimates
Analysts project Snowflake will report $1.25 billion in Q4 revenue, up from $986.8 million a year earlier, and a $0.10 per-share loss versus a $0.30 profit in prior Q4. The company has beaten revenue estimates for over 15 straight quarters and EPS estimates in six of the last six.
2. Analyst Revisions and Technical Resistance
Major brokerages have lowered price targets to a $247 average, down from as high as $312, reflecting waning sector confidence. Shares face technical resistance near $190 as broad AI disruption concerns fuel bearish momentum.
3. Key Metrics and AI Partnership
In Q3, Snowflake achieved 125% net revenue retention, held $7.88 billion in remaining performance obligations and counted 688 customers with over $1 million in annual product revenue. A new OpenAI partnership will deliver native model access to global users, aiming to accelerate enterprise AI adoption.