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Last week, you might have seen that Snowflake Inc. (NYSE:SNOW) released its annual result to the market. The early response was not positive, with shares down 6.1% to US$174 in the past week. The results overall were pretty much dead in line with analyst forecasts; revenues were US$3.6b and statutory losses were US$3.86 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Snowflake
Taking into account the latest results, the consensus forecast from Snowflake's 41 analysts is for revenues of US$4.47b in 2026. This reflects a major 23% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 3.3% to US$3.77 per share. Before this earnings announcement, the analysts had been modelling revenues of US$4.43b and losses of US$3.77 per share in 2026.
The consensus price target rose 6.3% to US$204, with the analysts increasing their valuations as the business executes in line with forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Snowflake, with the most bullish analyst valuing it at US$235 and the most bearish at US$115 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Snowflake's revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2026 being well below the historical 41% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.4% annually. Even after the forecast slowdown in growth, it seems obvious that Snowflake is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.