SNOW Stock Today: February 26 — AI Deals Lift Guide, Shares Slip
SNOW stock is in focus for Canadian investors after Snowflake lifted its AI revenue guidance while shares fell about 3% after hours on February 26. Management now sees fiscal 2027 product revenue at US$5.66 billion versus US$5.50 billion consensus, and Q1 product revenue at US$1.26–1.27 billion versus US$1.23 billion. Executives pointed to major AI partnerships and a record US$400 million deal. With valuation and consumption trends under the microscope, we break down what this means for portfolios in Canada and how to approach SNOW now.
AI guidance from Snowflake earnings
Snowflake raised its fiscal 2027 product revenue outlook to US$5.66 billion versus the Street at US$5.50 billion, and guided Q1 product revenue to US$1.26–1.27 billion versus US$1.23 billion. The company emphasized steady consumption signals and a stronger AI pipeline. For SNOW stock, product revenue is the key KPI, given its link to expansion, net retention, and the path to margin improvement as workloads scale.
Management said major AI partnerships and a record US$400 million multi‑year deal underpin the guide, with OpenAI Anthropic deals expanding workloads on the Data Cloud. That should lift compute and storage use from large customers. Canadian coverage, including The Globe and Mail, highlighted AI‑driven demand source, framing the beat within the broader enterprise cycle.
Why shares slipped despite a beat
Despite the raise, SNOW stock slipped about 3% after hours as investors weighed valuation against the pace of AI monetization. Shares trade near 13.27 times trailing sales with an implied free cash flow yield around 1.34%, while GAAP EPS is still negative. Bloomberg noted the outlook did not impress a part of the market source, reinforcing a show‑me setup into fiscal 2027.
From here, near‑term drivers are customer consumption growth and how fast AI projects move to production. Q1 product revenue guidance of US$1.26–1.27 billion implies healthy sequential progress, but the market wants proof of durable workloads and net retention. Watch capacity commitments, data sharing activity, and wins tied to OpenAI Anthropic deals that can convert into measurable product dollars for SNOW stock.
How Canadian investors can approach SNOW stock
For Canadians, SNOW stock trades in U.S. dollars on the NYSE. Consider foreign exchange costs, especially in non‑registered accounts. There is no dividend today, so withholding tax is not a factor, but USD/CAD swings can amplify returns. Liquidity is deep, and major Canadian brokerages support efficient USD settlement for large‑cap U.S. technology names.
Volatility is meaningful. The 14‑day ATR is about US$10.58 and Bollinger support sits near US$149.52. Size positions for a multi‑year view if you believe in Snowflake’s AI revenue guidance and product adoption. Use staged entries or periodic buys to manage timing risk. Traders should respect stops and reassess if price closes below the lower band on rising volume.
Valuation, ratings, and technical setup
Coverage remains constructive. Our compilation shows 66 Buy, 5 Hold, and 1 Sell ratings. Market cap is about US$57.95 billion, with price‑to‑sales near 13.27 and free cash flow yield around 1.34%. Snowflake is still unprofitable on GAAP metrics, which argues for patience and right‑sized positions even if SNOW stock benefits from stronger AI‑driven pipeline visibility.
Technically, momentum is cautious but stabilizing. RSI is 40.97 and ADX is 28.76, signaling a firm trend with soft momentum. The MACD histogram has turned slightly positive at 0.17. On ranges, Bollinger Bands span roughly US$149.52 to US$205.26. A move above the middle band near US$177.39 would help confirm improving sentiment for SNOW stock.
Final Thoughts
Snowflake’s update was solid where it counted, with product revenue guidance of US$5.66 billion for fiscal 2027 and Q1 at US$1.26–1.27 billion. AI partnerships and a record US$400 million deal support the pipeline, yet the market wants proof of faster monetization and durable consumption. For Canadian investors, SNOW stock remains a high‑beta AI infrastructure play with premium valuation and negative GAAP earnings. Practical steps: focus on product revenue, net retention, and AI‑related customer adds each quarter; size positions for volatility; consider staged entries; and watch technicals around the middle Bollinger band and RSI. If execution tracks the AI revenue guidance, upside can follow. If consumption wobbles, expect more chop.
FAQs
Is SNOW stock a buy after Snowflake’s guidance raise?
The guide lifts confidence, but the stock already prices in strong growth. We would treat SNOW stock as a long‑term growth position, sized modestly. Track product revenue, net retention, and AI workload wins each quarter. Consider staggered entries and respect technical signals if price loses support.
How do OpenAI Anthropic deals impact Snowflake’s revenue outlook?
These partnerships can drive more data, compute, and model‑adjacent workloads into Snowflake’s platform. That boosts product consumption, which is the key revenue driver. The record US$400 million deal and pipeline commentary suggest larger, multi‑year commitments. Investors should watch for concrete utilization metrics and customer case studies tied to these deployments.
What risks should Canadians watch with SNOW stock now?
Key risks include slower consumption growth, delayed AI projects, and valuation compression if execution lags. Currency swings can amplify gains or losses in CAD. GAAP profitability remains negative, so markets will scrutinize free cash flow and margins. Expect volatility around earnings updates and major AI partnership milestones.
What technical levels matter for SNOW stock in the near term?
RSI near 41 and an ADX around 29 reflect a cautious trend. Bollinger Bands sit near US$149.52 to US$205.26, with the middle band around US$177.39. A sustained close above the middle band would help the bull case, while a break below the lower band could invite further pressure.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.