SNOW
Snowflake Inc.
Technology · Software - Application · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 29.4/100 reflects a mid-range growth score driven by strong +29.2% revenue expansion, offset by zero profitability points due to deeply negative margins across all key metrics.
- Momentum received a positive contribution from unbroken sequential quarterly revenue growth, but persistent operating and net losses limited how high that score could go.
- Zero scores for both dividend (confirmed non-payer) and macro theme contribution, combined with the profitability drag, pulled the total score to a low level despite solid top-line performance.
Why Not Higher
- Profitability is the most significant constraint: all margin and return metrics are substantially negative in FY2026, and the model awards zero points when this is the case.
- Net losses widened year-over-year and EPS deteriorated, preventing the growth score from reaching its upper range despite the strong revenue expansion.
Data Confidence
6 / 10
Medium — some data gaps
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $3,626,396,000 to FY2026's $4,683,946,000, a gain of +29.2%. However, net income declined from -$1,285,640,000 in FY2025 to -$1,331,616,000 in FY2026 (-3.6%), and diluted EPS moved from -$3.86 in FY2025 to -$3.95 in FY2026 (-2.3%).
The model rewarded the strong top-line expansion of +29.2% from FY2025 to FY2026, but the widening net loss and deteriorating EPS over the same period tempered the overall growth score, resulting in a mid-range result.
In FY2026, Snowflake posted a net margin of -28.4%, an operating margin of -30.6%, and a return on assets of -14.6%, all deeply negative.
The model assigns zero points for profitability when all key margin and return metrics are substantially negative, reflecting that the company is not yet generating profits relative to its revenue or asset base in FY2026.
Filing evidence currently available does not support a more specific explanation for this factor.
Revenue showed consistent sequential growth across the last four quarters: $1,144,969,000 in 2026Q2, $1,212,909,000 in 2026Q3, $1,283,994,000 in 2026Q4, and $1,390,951,000 in 2027Q1. Operating losses narrowed from -$340,276,000 in 2026Q2 to -$318,159,000 in 2026Q4, though they ticked back to -$326,154,000 in 2027Q1, and net losses remained relatively stable across the same four quarters.
The model rewarded the unbroken upward revenue trajectory as a positive momentum signal, while the persistent and only modestly improving operating and net losses prevented a higher score.
Snowflake does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model awards zero points for this factor when a company is a confirmed non-payer, as there is no dividend income or yield for the model to reward.
Snowflake is assigned to the Enterprise AI Software macro theme.
Although the company carries the Enterprise AI Software theme assignment, this assignment did not translate into score points under the model's current methodology, which may reflect how theme scores interact with other model components at this time.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Snowflake delivered strong top-line growth of +29.2% year-over-year, with revenue rising from $3,626,396,000 in FY2025 to $4,683,946,000 in FY2026, and quarterly revenue has continued to climb sequentially through 2027Q1. However, the company remains deeply unprofitable, with a net margin of -28.4%, an operating margin of -30.6%, and a return on assets of -14.6% in FY2026, while net losses widened further year-over-year. The absence of a dividend and limited macro theme score contribution weighed on the composite, resulting in a total model score of 29.4/100 and a High risk rating.
Plain English
Snowflake is growing its sales fast — nearly 30% last year — but it's still losing a lot of money, and those losses are getting slightly bigger, not smaller, which is why the overall score is low and the risk is rated High.
Bull Case vs. Bear Case
Bull Case
- Revenue growth of +29.2% from FY2025 to FY2026 demonstrates strong and sustained demand for Snowflake's platform, with sequential quarterly gains continuing into 2027Q1.
- Quarterly operating losses showed a narrowing trend from -$340,276,000 in 2026Q2 to -$318,159,000 in 2026Q4, suggesting some incremental improvement in operational efficiency.
- Snowflake holds $9,132,495,000 in total assets as of FY2026, indicating a substantial balance sheet that may provide financial flexibility.
Bear Case
- The company posted deeply negative margins in FY2026 — net margin of -28.4%, operating margin of -30.6%, and return on assets of -14.6% — earning zero profitability score points.
- Net losses widened from -$1,285,640,000 in FY2025 to -$1,331,616,000 in FY2026, and diluted EPS deteriorated from -$3.86 to -$3.95, signaling that growth is not yet translating into bottom-line improvement.
- Snowflake pays no dividend and the Enterprise AI Software macro theme assignment did not contribute score points, both of which weighed on the composite result.
What Could Change the Picture
Bullish Triggers
- A sustained and meaningful narrowing of operating and net losses alongside continued double-digit revenue growth would signal that the business is scaling toward profitability.
- If the Enterprise AI Software theme assignment begins to translate into model score points, it could lift the composite score materially.
Bearish Triggers
- If quarterly revenue growth stalls or reverses after the consistent sequential gains seen through 2027Q1, the momentum signal that currently supports the score would deteriorate.
- Further widening of net losses beyond the -$1,331,616,000 recorded in FY2026 would reinforce concerns about the path to profitability.
Risk Profile
High RiskSnowflake carries a High risk rating consistent with its deeply negative operating and net margins and a pattern of widening losses, even as quarterly revenue grows consistently. Operating losses remained elevated across all four recent quarters and ticked back up in 2027Q1 after a brief improvement, underscoring the uncertainty around the timeline to profitability.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.