Key Stats for Snowflake Stock
- Earnings Reaction: +2.28%
- Current Price: $169.21
- Valuation Model Target: $730.96
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What Happened?
Snowflake (SNOW) is fighting a broader SaaS sector pullback following a massive fourth-quarter earnings release that completely redefined its competitive moat.
The enterprise data giant delivered $1.23 billion in product revenue, securing a massive 30% year-over-year growth rate.
Remaining performance obligations accelerated a staggering 42% to reach $9.77 billion.
This backlog explosion was highlighted by the largest deal in company history, a single contract exceeding $400 million in total value.
Despite widespread market fears that major artificial intelligence labs might commoditize traditional software layers, Snowflake is consolidating power.
CEO Sridhar Ramaswamy detailed exactly why the platform is immune to this threat.
Ramaswamy stated verbatim: “In our view, this is creating a clear separation between systems that demonstrate intelligence and platforms that can deploy it safely and at scale.”
By offering native integrations with OpenAI, Anthropic, and Gemini, Snowflake is transitioning from a passive analytics tool into an active AI application builder.
The newly launched Cortex Code is already being utilized by over 4,400 customers to deploy production-grade AI agents directly on top of their proprietary data.
See analysts’ growth forecasts and price targets for Snowflake stock (It’s free!) >>>
Is Snowflake Undervalued Today?
The TIKR Model indicates that the market is severely mispricing the operational leverage Snowflake is unlocking through artificial intelligence.
The model projects a massive target price of $730.96, representing an exceptional 332.0% potential total return from current levels.
The company recently closed a $600 million acquisition of Observe to dominate the $50 billion IT operations and observability market.
Snowflake is not just using AI to drive top-line revenue; management is systematically weaponizing it to drastically cut internal costs.
By using internal AI agents to automate engineering workflows, the company expanded its non-GAAP operating margin to 10.5% for the fiscal year.
CFO Brian Robins explained exactly how this dual engine of growth and efficiency is operating.
Robins stated verbatim: “We’ve consistently emphasized durable growth depends on two fundamentals: landing new customers and expanding existing ones. We’ve delivered on both.”
Read the full Snowflake Transcript on TIKR to see the revenue breakdown >>>
Valuation Deep Dive
The TIKR Advanced Valuation Model identifies Snowflake as an enterprise monopoly positioned to capture the massive shift toward agentic AI workflows.
- Target Price: $730.96
- Current Price: $169.21
- Annualized Return (IRR): 34.5%
The Agentic Control Plan:e Snowflake is rapidly replacing legacy software systems by allowing customers to build AI-powered workflows directly within its secure data cloud. Global enterprises are utilizing Snowflake Intelligence to deploy proprietary chatbots and automate complex financial operations in weeks rather than months. As these AI agents become central to how work gets done, the underlying data foundation becomes an absolute necessity for compliance and security. This transition positions Snowflake to become the central control plane for the next era of enterprise software.
Accelerating Profitability: Snowflake is proving that high growth can coexist with relentless operational discipline. According to the TIKR Historical Breakdown, the company has maintained an incredible 51.2% Revenue CAGR over the past five years. As the business achieves terminal scale and leverages internal AI automation, profitability is entering a massive structural expansion phase. The TIKR Model projects the Net Income Margin to expand dramatically to 13.5% by the end of the decade.
Conclusion: A dominant data monopoly is successfully evolving into the central foundation for enterprise AI. Snowflake offers a massive 332.0% projected total return potential. The path to the $730.96 target is paved by record backlog growth, soaring operational margins, and the rapid deployment of Cortex Code.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
