Why Snowflake Stock Popped Today
Shares of data company Snowflake (NYSE: SNOW) popped on Thursday after the company reported financial results for its fiscal fourth quarter of 2025. The quarter ended in January and showcased better-than-expected growth. And that's why Snowflake stock was up about 10% at 9:40 a.m. ET.
Snowflake's management had guided for Q4 product revenue of $906 million to $911 million. But the business generated product revenue of $943 million, which significantly outpaced that forecast. This is particularly encouraging because Snowflake has a usage-based business model. Therefore, the higher-than-expected revenue points to an uptick in usage.
Snowflake CFO Mike Scarpelli, who plans to retire as soon as a replacement is found, celebrated the revenue surprise by saying, "During the quarter, several large customers ran out of capacity before their contract end date as their revenue outpaced their contracted bookings." In other words, its customers signed spending contracts based on their expected needs (bookings) but it turns out that they're using Snowflake's platform more than expected.
Source Fool.com
