Snowflake Earnings Preview: Fiscal Q4 2025

According to Visible Alpha consensus, total revenues of $914 million and operating income of $30 million are expected for Q4 2025. Operating profit expectations for the Q4 have moved up more than 10% from $5 million in August to now $42 million. However, these estimates are still lower than the initial estimates in January 2024. While expectations have come down for FY 2025, overall growth continues to be driven by the strength of Snowflake’s data platform and the potential network effects of moving more data there. The company made several AI-related announcements at its Build conference.

It will be interesting to hear the company’s commentary on the FY 2026 outlook for their AI-related products in the earnings call.

Currently, there is debate about the gross margin performance. Based on Visible Alpha consensus, the non-GAAP gross margin estimates range from 74% to 77% for Q4 2025. For FY 2026, Visible Alpha consensus for gross margin has moved up to 76% from 75% in the August quarter but is still below the 77% previously expected at the beginning of FY 2025

The stock was a significant underperformer for most of last year, but since last quarter is up a strong 43% on an improved revenue and profit outlook. Could the Q4 release provide another positive catalyst for the stock into FY 2026?

Snowflake Revisions