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analyticsEditorial Financial Analysis

Financial Performance & Trajectory

Snowflake continues to demonstrate robust top-line momentum, with trailing revenue scaling from $4.34B in Q4 2025 to $4.79B by Q2 2026. This represents a significant acceleration in year-over-year growth, from 19.7% to 32.1%, indicating that recent product cycles and consumption-based model optimizations are gaining traction. Gross margins remain healthy and stable at approximately 67.1%, reflecting efficient infrastructure cost management despite the scaling complexity. More notably, free cash flow (FCF) margins have expanded to 21.9%, down slightly from a peak of 23.9% in Q1 2026 but still signaling strong cash generation discipline. The combination of accelerating revenue growth and sustained high gross margins positions Snowflake as a premium asset in the data infrastructure space.

Operational & Go-to-Market (GTM) Efficiency

Snowflake’s Rule of 40 score has improved markedly, rising from 42.6 in Q4 2025 to 54.0 in Q2 2026, comfortably exceeding the 40% threshold that signals efficient growth. This improvement is driven by the simultaneous acceleration in revenue growth and disciplined FCF margins. Although specific net revenue retention (NRR) and CAC payback data are unavailable, the upward trajectory in the Rule of 40 suggests that Snowflake’s GTM investments are yielding strong unit economics. The company’s focus on data sharing and workload consolidation likely supports high retention among existing customers, while the expanding cash flow indicates that reinvestments in R&D and sales are being deployed with increasing efficiency.

Market Valuation & Sentiment

At 17.9x trailing EV/Revenue, Snowflake commands a premium multiple relative to the broader SaaS cohort, reflecting its growth reacceleration and market leadership. Notably, this multiple has expanded from 11.0x in Q1 2026, signaling increased investor confidence. However, insider trading activity reveals a net sell value of -$10.9M over the last 10 filings with zero insider purchases, a cautious signal that may temper enthusiasm. Wall Street remains overwhelmingly bullish, with a consensus of 42 Buy ratings against only 1 Sell, and an average price target of $275.29, implying roughly 20% upside from current levels. The combination of strong operational metrics and insider selling creates a nuanced picture, where the market is pricing in continued execution, but insiders are taking some chips off the table.

Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.

Snowflake Inc. (SNOW) is a Data & Analytics SaaS company with a market cap of $88.6B as of Q2 2026. The company trades at 17.9x EV/Revenue and has delivered +32.1% revenue growth year-over-year. With a gross margin of 67% and FCF margin of 21.9%, Snowflake Inc. scores 54 on the Rule of 40 — placing it in the top quartile of public SaaS companies tracked by SaaSDB.

compare_arrowsSector Benchmarking

Latest company metrics compared to the Data & Analytics sector medians

EV / Revenue
Premium
17.9xvs 10.1x median

EV/Revenue is 17.9x (sector median: 10.1x) — trading at a premium of 7.8x relative to peers.

Rule of 40
Outperforming
54.0%vs 39.7% median

Rule of 40 is 54.0% (sector median: 39.7%) — outperforming peers by 14.3%.

Revenue Growth
Outperforming
32.1%vs 21.1% median

Revenue Growth is 32.1% (sector median: 21.1%) — outperforming peers by 11.0%.

Gross Margin
Underperforming
67.1%vs 73.6% median

Gross Margin is 67.1% (sector median: 73.6%) — underperforming peers by 6.5%.

FCF Margin
Outperforming
21.9%vs 6.7% median

FCF Margin is 21.9% (sector median: 6.7%) — outperforming peers by 15.2%.

monitoringInvestor Metrics

Market Cap
$88.6B
Q2 2026
Enterprise Value
$85.9B
Q2 2026
Revenue (TTM)
$4.8B
Q2 2026
32.1%
Year-over-year
17.9x
Enterprise Value multiple
18.5x
Price-to-Sales
67.1%
Gross profit margin
-30.1%
Operating income margin

From the makers of SaaSDB

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rocket_launchFounder & Operator Metrics

54.0
Revenue growth + FCF margin
21.9%
Free cash flow margin
67.1%
Gross profit margin
Operating leverage
20.0x
Margin expansion vs revenue growth
R&D intensity
42%
R&D as % of TTM revenue

Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback

trending_upEfficiency & Investment Trends

biotechR&D Intensity Trend

R&D expense as % of revenue over time

SNOW's R&D spend represents a significant product investment relative to revenue, typical of early/expansion-stage SaaS.

insightsOperating Leverage Trend

Operating leverage ratio (margin expansion vs growth)

check_circle

Growing efficiently. Operating income is expanding faster than revenue growth, indicating positive operating leverage.

Insider Trading Activity

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90-Day Insider Sentiment: Bearish / Net Selling. Insiders executed 4 sell transactions (totaling $1.9M) with zero buys. Last activity on May 28, 2026.

DateInsiderTitleTransactionSharesPriceValue
2026-06-01Slootman FrankDirectorGRANT437,076$8.88$3.9M
2026-06-01GARRETT MARKDirectorGRANT100,000$3.74$374K
2026-05-29Slootman FrankDirectorGRANT400,000$8.88$3.6M
2026-05-29Kleinerman ChristianEVP, Product ManagementSELL5,000$236.77$1.2M
2026-05-28Slootman FrankDirectorGRANT55,350$8.88$492K
2026-05-20Slootman FrankDirectorGRANT144,650$8.88$1.3M
2026-05-04Speiser Michael LDirectorSELL225$142.07$32K
2026-04-17Beaulier Jonathan MeadChief Revenue OfficerGRANT192,968$0.00$0
2026-04-09Dageville BenoitFounder and Chief ArchitectGIFT391,913$0.00$0
2026-04-06Speiser Michael LDirectorSELL403$148.21$60K
2026-04-02Raghunathan VivekSVP, EngineeringSELL3,876$152.80$592K
2026-03-24Raghunathan VivekSVP, Engineering and SupportGRANT3,603$175.40$632K
2026-03-24Ramaswamy SridharChief Executive OfficerGRANT3,415$175.40$599K
2026-03-24Gannon Michael SChief Revenue OfficerGRANT28,478$0.00$0
2026-03-24ROBINS BRIAN GChief Financial OfficerGRANT14,239$0.00$0
2026-03-24Dageville BenoitFounder and Chief ArchitectGRANT598$175.40$105K
2026-03-24Kleinerman ChristianEVP, Product ManagementGRANT1,793$175.40$314K
2026-03-24Ho EmilyChief Accounting OfficerGRANT268$175.40$47K
2026-03-20Slootman FrankDirectorGRANT88,701$8.88$788K
2026-03-18Ramaswamy SridharChief Executive OfficerGRANT3,975$178.66$710K

Analyst Ratings

BuyAvg. price target: $275.29as of 2026-06-01
Buy 42 (81%)Hold 9 (17%)Sell 1 (2%)

From the makers of SaaSDB

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