Does The Move In Snowflake Stock Change Anything?
Snowflake (SNOW) stock rose 59.3% from January 18 to October 15, 2026, against 12.5% for the S&P 500. The company reported quarterly results three times along the way, on February 25, May 27 and September 2. Buyers appear to be betting that customers using AI on Snowflake’s data platform will keep its sales growth climbing while its losses shrink. So how much faster is Snowflake growing than it was in January?
Snowflake Has Grown Faster Every Quarter Since January
Snowflake’s revenue is growing about five percentage points faster than when the rise began. Revenue grew 30.1% from a year earlier in fiscal Q4 2026, the quarter that ended January 31. That pace reached 35.1% in fiscal Q2 2027, with growth registering higher in each quarter along the way. Product revenue, nearly all of Snowflake’s sales, grew 37% in that latest quarter. On the September 2 call, management said customers using AI on Snowflake consume more across the data platform.
The stock’s two largest one-day gains during the rise came right after the May 27 and September 2 reports. Shares rose 37% on May 28, the day after Snowflake reported fiscal Q1 2027 results. On the September 2 call, management said it had raised its fiscal 2027 forecast for product revenue growth by more than five percentage points, to 36%. The stock gained 16.6% the next day.
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How Far Have Snowflake’s Losses Shrunk?
Snowflake’s operating loss came to 17.0% of revenue in fiscal Q2 2027, against 29.7% in fiscal Q2 2026. The company’s losses are narrowing, though it still loses money. Management said on the September 2 call that Snowflake remains on track for a profit under standard accounting rules (GAAP) in fiscal Q4 2028.
Yet management also said its fast-growing AI workloads carry a lower margin today. So Snowflake keeps less of each dollar on the sales that are lifting its growth, at least for now.
Why Snowflake Is Still Valued On Its Sales
Snowflake is still valued on its sales because it remains unprofitable, despite the faster growth. It lost $1.09 billion over the twelve months to July 31, 2026, so its price-to-earnings multiple is not meaningful. Its operating loss over those twelve months stood at 22.8% of revenue. That marks the smallest figure at any quarter end from fiscal Q2 2021 on, yet it is still a loss.
On sales, the stock trades at 21.5 times, against 3.1 for the S&P 500. At that multiple, the share price appears to assume that both the faster growth and the shrinking losses continue.
Snowflake’s sales growth has picked up since January and its losses have narrowed, but the company still loses money, just as it did when the rise began. Snowflake’s operating margin in its fiscal Q3 2027 report, expected on or around December 1, 2026, is the number to watch.
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