Rankings Software, cloud & internet Snowflake
Snowflake
59
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Multiples vs own history−15
- Absolute price level and peers−12
- Margin (GAAP loss)−8
Strengths
- Raised guidance and acceleration+4
- Net revenue retention and customers+3
- Net cash+1
How the score is built
From 100 to 59, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 2 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 290.68 USD
- Median analyst target
- 443.50 USD
- Upside to median
- +52.6%
- Analysts
- 52
- Target range
- 110.00 – 525.00 USD
- 52-week change
- +6%
- P/E (trailing)
- n/a
- Forward P/E
- 115.3
- PEG
- 2.95
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−16 of −30
- −8Margin (GAAP loss)GAAP operating loss is 1,219m $ TTM (-22% of revenue) and net loss 1,091m $. There have been losses every year, and a GAAP profit is not expected until Q4 FY28. The positive picture exists only in non-GAAP (operating margin 15%).
- −6Stock-based compensation versus FCFStock-based compensation was 1,642m $ TTM, more than the entire FCF of 1,195m $, so FCF after stock compensation is approx. -450m $. Stock compensation is 29% of revenue in Q2 (38% a year earlier). Share count rose 3.4% despite buybacks of 1.4bn $.
- −2Gross margin under pressure from AINon-GAAP product gross margin fell to 74.7% from 76.4%, and full-year guidance is 74.0%. Snowflake buys the inference it resells, so AI growth has a lower contribution margin.
Price
Today's multiples against the company's own history and its peers. · 2 findings−27 of −35
- −15Multiples vs own historyP/S 23.9 is at the top of FY23-26 (14-24), P/FCF 109 is above the whole 59-97 range, and forward P/E is 146. The share price has almost doubled from $193 in January 2026 to $369.
- −12Absolute price level and peersThe FCF yield is 0.9% (negative after share-based compensation), and EV is $128bn on revenue of $5.4bn. Databricks is valued privately at about 27 times revenue with over 80% growth; Snowflake gets about 21 times with 35% growth.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−8 of −35
- −3Insider sellingBoard member and former CEO Frank Slootman sold 300,000 shares for approx. 82m $ in July 2026 and also sold in June and August (10b5-1 plan). There are no insider purchases.
- −3Order book and customer concentrationRPO fell from USD 9.77bn to USD 9.00bn in half a year, and growth slowed from 42% to 30%; deferred revenue fell from USD 3.35bn to USD 2.57bn. Customers above USD 1m (about 6% of customers) account for about 68% of product revenue.
- −2Competition (Databricks and hyperscalers)Databricks reports $7bn in ARR with over 80% growth, more than twice as fast as Snowflake, and the hyperscalers have their own data platforms. This creates lasting pressure on price and market share.
Plus
Only documented strengths. · 3 findings+8 of +15
- +4Raised guidance and accelerationProduct revenue rose 37% in Q2 and accelerated. Full-year guidance has been raised from $5.84bn (+31%) to $6.07bn (+36%), and guidance for non-GAAP operating margin from 13.5% to 14.5%.
- +3Net revenue retention and customersNet revenue retention is 126% (125% a year earlier). 828 customers have over $1m in product revenue (+27%), and 829 are Forbes Global 2000 companies.
- +1Net cashNet cash of $1.57bn including investments (debt $2.76bn, mainly convertible notes).
Caveats
What the score does not capture, or where the data is weak.
The fiscal year ends 31/1 (Q2 FY27 = May-July 2026). The company has a GAAP loss and is not expected to turn a GAAP profit until Q4 FY28; all positive margins are non-GAAP. The consumption model gives low seat risk, but unpredictable revenue. AI accounts for about half of growth, but AI revenue is not disclosed. Insider sales from aggregators have only been partly checked in Form 4.
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