Snowflake Stock (SNOW) Outperforming Into Earnings: What Next for the Data Giant?

Snowflake Inc. (NYSE: SNOW), the cloud-based data warehousing powerhouse, is heading into its earnings release today, after market close, with considerable momentum. The Snowflake stock is currently changing hands at $264.22 in the pre-market, 1.75% from yesterday's close.

Analysts are expecting the company to deliver an EPS of $0.31, on revenue of $1.18billion. This would reflect a 25.68% sales growth rate Y/Y, and a jump of more than 50% on the 20cents per share hit this time last year.

Over the past 52 weeks, SNOW has demonstrated significant growth, with its price ranging from $120.10 to $280.67, marking a staggering +96.60% price change.

This impressive climb has been supported by key technical indicators. The 50-day Simple Moving Average (SMA) sits at $243.96, while the 200-day SMA is at $201.52. The fact that the current stock price is comfortably above both these averages strongly suggests a continuing bullish trend.

Partnerships Fuel Optimism

Recent strategic moves have significantly contributed to Snowflake's positive market sentiment. The integration of NVIDIA's CUDA-X Data Science libraries, announced on November 18, 2025, is a game-changer. This native integration allows customers to leverage GPU-accelerated machine learning workflows directly within the Snowflake environment, dramatically improving data processing speeds. NVIDIA's benchmarks indicate performance improvements of up to five times faster for Random Forest algorithms and up to 200 times faster for HDBSCAN clustering on NVIDIA A10 GPUs compared to traditional CPU processing. This enhancement positions Snowflake as a leader in providing cutting-edge data science capabilities.

Furthermore, the strategic collaboration with SAP, unveiled on November 4, is another major catalyst. This partnership aims to integrate Snowflake's AI Data Cloud with SAP's Business Data Cloud, enabling seamless, bidirectional data sharing and unified governance. The integrated offering, SAP Snowflake, scheduled for general availability in the first quarter of 2026, promises to harmonize SAP and non-SAP data in real-time, offering significant value to enterprise customers.

The appointment of Bill Scannell to the Board of Directors on May 8, further strengthens Snowflake's leadership. Scannell's extensive experience in global sales and customer operations is expected to bolster the company's strategic initiatives as it continues to focus on empowering enterprises with data and AI capabilities.

In the first quarter of fiscal year 2026, Snowflake reported product revenue of $996.8 million, a 26% year-over-year increase. The company maintained a robust net revenue retention rate of 124% and expanded its high-value customer base to 606 customers with trailing 12-month product revenue exceeding $1 million, representing 27% growth. These strong financial results have undoubtedly contributed to the positive market sentiment.

Analysts are generally optimistic about Snowflake's prospects. Bank of America recently raised its price target for Snowflake to $310.00, reflecting confidence in the company's growth potential and strategic direction. However, not all signals are entirely positive.

On October 4, Snowflake's stock experienced a 2.1% decline following insider selling activities. Executive Vice President Christian Kleinerman sold 10,000 shares at an average price of $223.88, totaling approximately $2.24 million. While insider selling doesn't always indicate a negative outlook, it can sometimes influence investor sentiment and lead to short-term price fluctuations.

Snowflake is undoubtedly a leader in the cloud data warehousing space, and its recent strategic partnerships and strong financial performance have seen the stock outperform, sitting 65% higher since the start of the year. The upcoming earnings will be a crucial test of whether Snowflake can continue to deliver on its promises and justify its high valuation.