https://tendrill.ai/2025/12/02/snowflake-earnings-outlook-preview/
Snowflake Earnings Outlook Ahead of Tomorrow’s Report
Snowflake (SNOW) heads into tomorrow’s earnings release with rising expectations, renewed analyst optimism, and elevated investor attention as AI‑related data workloads accelerate. The stock has rallied into the print, reflecting both improving sentiment across cloud‑software names and anticipation that Snowflake will show progress on key growth and margin metrics.
What Wall Street Expects
Analysts broadly expect Snowflake to report steady product‑revenue growth alongside improving operating efficiency. Consensus estimates from FactSet point to:
- Continued mid‑to‑high‑20s product‑revenue growth
- Gradual operating‑margin expansion
- Ongoing increases in large enterprise customer adoption
Several analysts referenced by Bloomberg have lifted price targets in recent days, citing stronger‑than‑expected cloud‑spending checks and increasing AI‑driven workloads.
Key Metrics Investors Will Watch
Product Revenue Growth
Snowflake’s product revenue remains its most important indicator of demand. Investors want confirmation that enterprise consumption trends are stabilizing and that large customers are scaling usage once again.
AI and Large‑Language Model (LLM) Workloads
Snowflake’s positioning in AI data infrastructure is increasingly central to the bull case. Analysts watching the sector have highlighted rising adoption of Snowflake Cortex and Snowpark, with Rosenblatt noting improved AI‑related workload traction in recent field checks.
Operating Margins and Guidance
After several quarters of volatility in usage patterns, Snowflake’s margin improvement and forward revenue guidance will heavily influence market reaction. Analysts from Jefferies and DA Davidson have pointed to potential upside if the company demonstrates stronger cost discipline and signals confidence in FY2026 consumption trends.
Strategic Themes to Watch in Management Commentary
New Product Adoption
Snowflake’s investments in AI, real‑time data processing, and application hosting will likely be a central focus. Management commentary on engineering momentum and early customer wins may set the tone for expectations heading into next year.