By Angela Palumbo
Snowflake earnings are coming after the bell Wednesday, and Wall Street expects that the cloud-based data storage company will continue to show signs of growth.
Analysts surveyed by FactSet expect the company to report adjusted earnings of 21 cents a share on revenue of $1 billion for its fiscal first quarter ended in April. That would be a jump from the earnings of 14 cents a share on revenue of $828.7 million in the same period last year.
Product revenue -- derived from Snowflake customers' consumption of compute, storage, and data transfer -- is expected to grow 22% from the prior year to $962 million.
"We are expecting a strong quarter out of Snowflake ...on the account of positive trends cited by our checks and playing a market going through a mass amount of disruption," Cantor analyst Thomas Blakey wrote in a May 18 research note. He rates Snowflake as Overweight with a $183 price target.
Snowflake stock has done well so far this year, rising 18%, outperforming the 0.9% gain of the S&P 500. Wall Street has been pleased with the company's performance as it continues to benefit from enterprises spending on artificial intelligence.
Software companies like ServiceNow, SAP, Monday.com ,and Microsoft have all provided better-than-expected outlooks this latest earnings season as companies continue to invest in their services, despite overarching concerns about the broader economic environment. That bodes well for Snowflake.
Stifel analyst Brad Reback rates Snowflake as a Buy with a $210 price target. He wrote in a May 18 research note that because of positive commentary from peers in the latest quarter, and recently solid performance from fellow cloud companies, "we expect a typical upside quarter."
Shares of Snowflake were up 0.6% in afternoon trading on Wednesday to $183.91.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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May 21, 2025 13:32 ET (17:32 GMT)
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