# Snowflake (SNOW.US)

Canonical: https://gigainvestors.com/s/SNOW

Analysis as of: 2026-10-16T07:32:00.918Z. Financial observations: FY2019–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $335.07 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 8 years

- Years with declining revenue: 0

- Years with a net loss: 8

- Operating margin variation: 0.69×

Chart: Operating margin; fiscal year observations.

- FY2019: -1.92×

- FY2020: -1.35×

- FY2021: -0.92×

- FY2022: -0.59×

- FY2023: -0.41×

- FY2024: -0.39×

- FY2025: -0.40×

- FY2026: -0.31×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -29.7%

- ROIC, second-lowest year: -63.8%

- Typical minus recent gross margin: -3.3 pp

- Typical gross margin (annual median): 63.8%

- Recent gross margin (lower of latest and 3-year median): 67.2%

- Years with nonpositive capital: 4

- Capital spending / revenue: 2.4%

- ROIC including acquisitions, ten-year median: -47.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2019: 0.0%

- FY2020: 0.0%

- FY2021: -35.1%

- FY2022: -40.5%

- FY2023: -63.8%

- FY2024: -133.9%

- FY2025: -20.2%

- FY2026: -24.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$4.6B

- Net income, five-year total: -$4.9B

- Return on incremental invested capital: -115.2%

- Working capital / revenue, annual change: -7.7 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$680M

- FY2023: -$782M

- FY2024: -$785M

- FY2025: -$1.1B

- FY2026: -$1.2B

### management: fail

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 0.0% vs -24.3%

- Per-share earnings: -1.25 to -3.81 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 2.9%

- Diluted shares, 5-year annual growth: 2.9%

- Per-share value change: -$2.56

- Per-share value, starting three-year median: -$1.25

- Per-share value, ending three-year median: -$3.81

- Buybacks concentrated in cheaper years (correlation): -0.90

- Average buyback yield: 1.1%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 0.0%

- ROIC, last three-year median: -24.3%

Chart: Earnings per share; fiscal year observations.

- FY2019: -$0.75

- FY2020: -$1.25

- FY2021: -$1.78

- FY2022: -$2.12

- FY2023: -$2.42

- FY2024: -$2.52

- FY2025: -$3.83

- FY2026: -$3.81

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -28.0%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 130.9%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.75×

Chart: Sloan accruals; fiscal year observations.

- FY2019: -4.5%

- FY2020: -17.0%

- FY2021: -8.3%

- FY2022: -11.9%

- FY2023: -17.4%

- FY2024: -20.5%

- FY2025: -24.9%

- FY2026: -28.0%

## Holders

- [Duan Yongping](https://gigainvestors.com/HH): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andreas Halvorsen](https://gigainvestors.com/vg): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 131% since Oct 2023 · "How Investors May Respond To Snowflake (SNOW) AI-fueled Guidance Hike and $3.7 Billion Buyback" (finance.yahoo.com, Sep 2026) · sales +29.2%

Story as of 2026-10-16T09:59:36.497Z; price observation 2026-10-15.

- 2025-05-22: Snowflake (SNOW) Reports Strong Q1, Raises Full-Year Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/snowflake-snow-reports-strong-q1-205510056.html))

- 2025-10-16: Snowflake Stock Climbs After Striking High-Profile AI Deal With Palantir ([finance.yahoo.com](https://finance.yahoo.com/news/snowflake-stock-climbs-striking-high-173859463.html))

- 2025-12-04: Snowflake shares fall on slower product revenue growth forecast for fourth quarter ([finance.yahoo.com](https://finance.yahoo.com/news/snowflake-shares-fall-slower-product-130600639.html))

- 2026-03-20: Snowflake's Cortex Code, AI Workloads Contribution Margins Lower than Core Analytics Workloads, Oppenheimer Says ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/snowflake-apos-cortex-code-ai-145513402.html))

- 2026-05-28: Snowflake Q1 fiscal 2027 earnings beat, $6 billion AWS deal ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/snowflake-q1-fiscal-2027-earnings-120043255.html))

- 2026-08-19: Snowflake (SNOW) Unveils AI Model Routing To Cut Enterprise Cost And Lock In Flexibility ([finance.yahoo.com](https://finance.yahoo.com/technology/ai/articles/snowflake-snow-unveils-ai-model-141011427.html))

### Sales · FY2025–2026

sales +29.2%; source https://www.sec.gov/Archives/edgar/data/1587755/000114036116079143/form10k.htm; observed 2016-09-08.

- FY2019: $97M 

- FY2020: $265M 

- FY2021: $592M 

- FY2022: $1.2B 

- FY2023: $2.1B 

- FY2024: $2.8B 

- FY2025: $3.6B 

- FY2026: $4.7B 

### Gross margin · FY2026

gross margin 67.2%; source https://www.sec.gov/Archives/edgar/data/1587755/000114036116079143/form10k.htm; observed 2016-09-08.

- FY2019: 46.5% 

- FY2020: 56.0% 

- FY2021: 59.0% 

- FY2022: 62.4% 

- FY2023: 65.3% 

- FY2024: 68.0% 

- FY2025: 66.5% 

- FY2026: 67.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 4.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2016-09-08); FY2026: revenue 4683946000; grossProfit 3146141000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 66.5% to 68% during 2024–26; it lost 29.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2016-09-08); FY2024: grossProfit / revenue = 68%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2016-09-08); FY2025: grossProfit / revenue = 66.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2016-09-08); FY2026: grossProfit / revenue = 67.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2016-09-08); 8-year return on capital observations [[2019,0],[2020,0],[2021,-0.3509285297204153],[2022,-0.40498884427874965],[2023,-0.63804679648964],[2024,-1.3385293630588035],[2025,-0.20232324321452952],[2026,-0.24302847928155952]]; median -0.2969785045009874. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 8 years; bought back USD 873.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2016-09-08); Dividend observations: [[2019,0],[2020,0],[2021,2059999],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2016-09-08); FY2026: cash repurchases 873537000 USD.

### Are managers owners

Insiders own 2.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SNOW.US SharesStats.PercentInsiders = 2.875 percentage points; cache date 2026-10-16.

### What the price says

The price is 25 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2016-09-08); Closing price 335.07 USD; reporting-to-trading FX 1; FY2026 annual sales per share 13.411172861245443; price multiple 24.984392004092275. FY2026 cash earnings/share -3.4725173725938205. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2020-09: $251.00 per share

- 2020-10: $250.02 per share

- 2020-11: $325.84 per share

- 2020-12: $281.40 per share

- 2021-01: $272.45 per share

- 2021-02: $259.54 per share

- 2021-03: $229.28 per share

- 2021-04: $231.59 per share

- 2021-05: $238.03 per share

- 2021-06: $241.80 per share

- 2021-07: $265.72 per share

- 2021-08: $304.35 per share

- 2021-09: $302.43 per share

- 2021-10: $353.84 per share

- 2021-11: $340.15 per share

- 2021-12: $338.75 per share

- 2022-01: $275.90 per share

- 2022-02: $265.66 per share

- 2022-03: $229.13 per share

- 2022-04: $171.44 per share

- 2022-05: $127.65 per share

- 2022-06: $139.06 per share

- 2022-07: $149.91 per share

- 2022-08: $180.95 per share

- 2022-09: $169.96 per share

- 2022-10: $160.30 per share

- 2022-11: $142.90 per share

- 2022-12: $143.54 per share

- 2023-01: $156.44 per share

- 2023-02: $154.38 per share

- 2023-03: $154.29 per share

- 2023-04: $148.08 per share

- 2023-05: $165.36 per share

- 2023-06: $175.98 per share

- 2023-07: $177.71 per share

- 2023-08: $156.85 per share

- 2023-09: $152.77 per share

- 2023-10: $145.13 per share

- 2023-11: $187.68 per share

- 2023-12: $199.00 per share

- 2024-01: $195.64 per share

- 2024-02: $188.28 per share

- 2024-03: $161.60 per share

- 2024-04: $155.20 per share

- 2024-05: $136.18 per share

- 2024-06: $135.09 per share

- 2024-07: $130.38 per share

- 2024-08: $114.23 per share

- 2024-09: $114.86 per share

- 2024-10: $114.82 per share

- 2024-11: $174.80 per share

- 2024-12: $154.41 per share

- 2025-01: $181.51 per share

- 2025-02: $177.10 per share

- 2025-03: $146.16 per share

- 2025-04: $159.49 per share

- 2025-05: $205.67 per share

- 2025-06: $223.77 per share

- 2025-07: $223.50 per share

- 2025-08: $238.66 per share

- 2025-09: $225.55 per share

- 2025-10: $274.88 per share

- 2025-11: $251.24 per share

- 2025-12: $219.36 per share

- 2026-01: $192.70 per share

- 2026-02: $168.41 per share

- 2026-03: $150.82 per share

- 2026-04: $136.47 per share

- 2026-05: $255.55 per share

- 2026-06: $254.50 per share

- 2026-07: $293.28 per share

- 2026-08: $331.43 per share

- 2026-09: $339.56 per share

- 2026-10: $357.76 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1587755/000114036116079143/form10k.htm); period 2016-06-30, filed 2016-09-08.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.