Snowflake Withdraws $10B 2029 Target, Cuts 2025 Growth to 22%
Snowflake withdrew its $10 billion 2029 product revenue target and cut fiscal 2025 product revenue growth guidance to 22%, down from the market’s expected 30%. Shares plunged $41.72, an 18.14% decline, after disclosures that product efficiency headwinds of 6.2%–6.3% and Iceberg Tables migration threaten 10%–11% of revenue.
1. Guidance Withdrawal and Stock Reaction
Snowflake management formally withdrew its $10 billion product revenue target for 2029 and issued fiscal 2025 product revenue guidance of approximately $3.25 billion, reflecting 22% year-over-year growth versus a 30% market expectation. The announcement triggered an 18.14% stock drop, equivalent to a $41.72 per share decline.
2. Revenue Headwinds and Product Impact
Management disclosed that product efficiency improvements created a 6.2%–6.3% annual revenue headwind, while Iceberg Tables migration by large customers exposed 10%–11% of storage revenue to potential loss. Tiered storage pricing further compressed revenue from major accounts despite a 62% increase in daily jobs run on the platform yielding only 33% revenue growth.
3. Class Action Lawsuit Filed
Shareholders who bought SNOW between June 27, 2023 and February 28, 2024 have filed a securities class action, alleging management knew of these headwinds and misled investors. Lead plaintiff deadline is April 27, 2026, and complaint highlights over $400 million in insider sales during the class period, including $263 million by the CEO.