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On Thursday, Canaccord Genuity maintained a positive outlook on Snowflake Inc . (NYSE: NYSE:SNOW), reiterating a Buy rating and a $220.00 price target. Following the release of Snowflake’s fourth-quarter results, which displayed strong performance across all key metrics, analysts at Canaccord expressed confidence in the company’s financial health. According to InvestingPro data, the stock is currently trading at $166.19, with analyst targets ranging from $115 to $235, suggesting potential upside based on the current Fair Value assessment.
Snowflake’s product revenue reached $943 million, marking a 28% year-over-year increase and surpassing Canaccord’s recently raised estimates by approximately $35 million, or 4%. This growth indicates a stabilization in the company’s revenue expansion, which has been in the high-20% range. InvestingPro data shows the company’s overall revenue growth at 30.28% over the last twelve months, with liquid assets exceeding short-term obligations.
The firm’s Net Revenue Retention (NRR) rate saw a slight decrease of 1 percentage point to 126%. Despite this minor dip, Canaccord views the result as favorable, especially considering the gradual declines experienced over the past two years. Snowflake’s CFO, Mike Scarpelli, commented during the earnings call that he considers a mid-120s NRR to be a reasonable expectation for fiscal year 2026.
Canaccord analysts believe that the company’s current trajectory provides a solid framework for potential upward revisions to its product revenue guidance, which currently suggests a 23.5% growth rate. The firm’s analysis indicates that Snowflake’s recent financial achievements could lead to continued positive performance in the future.
In other recent news, Snowflake Inc. reported its financial results for the fourth quarter of fiscal year 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.30, significantly higher than the forecasted $0.17. Snowflake also exceeded revenue projections, reporting $986.8 million against the expected $956.22 million. For the full fiscal year, the company recorded a product revenue of $3.5 billion, marking a 30% year-over-year increase. Additionally, Snowflake introduced over 400 new product capabilities throughout the year, underscoring its commitment to innovation.
The company’s net revenue retention rate stood at 126%, indicating strong customer loyalty. Analysts from firms such as Morgan Stanley (NYSE:MS) and Evercore ISI expressed optimism about Snowflake’s ability to maintain growth, with expectations of further product revenue increases in fiscal year 2026. Snowflake provided guidance for the upcoming quarter, projecting product revenue between $955 million and $960 million, representing a 21-22% year-over-year growth.
In terms of analyst actions, there were no specific upgrades or downgrades reported in the recent developments. However, the company’s strategic innovations and robust performance have been well-received by the investment community. Snowflake’s recent partnership with Microsoft (NASDAQ:MSFT), integrating OpenAI’s models into its platform, highlights its strategic focus on expanding AI capabilities.
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