Snowflake flags bearish divergence ahead of Sept. 2 earnings

Snowflake Inc. is scheduled to report quarterly results on Sept. 2. Shares traded at $319.80, below last month’s high near $341. Technical indicators show bearish divergence: the Percentage Price Oscillator has fallen while the stock price held relatively steady and the Relative Strength Index has declined in recent weeks.

Analysts polled expect revenue of about $1.48 billion for the quarter, roughly 30% above the year-ago period, and earnings per share of $0.45 compared with $0.35 a year earlier. Consensus estimates for the fiscal year put revenue near $6.1 billion and EPS around $1.94.

In the first quarter, Snowflake reported revenue of $1.39 billion, up 33% year over year, and a net retention rate of 126%. Company executives attributed that growth to products including Cortex Code and Snowflake Intelligence. Customers spending $1 million or more annually rose to 779. Major customers include Honeywell, Amazon, Siemens Energy, Accor and Zurich.

On the chart, Snowflake remains above its 50-day and 100-day exponential moving averages. Some traders identify the nearest technical support near $300; a sustained move above $341 would counter the current bearish technical pattern.

Valuation metrics show a market capitalization above $110 billion and a forward price-to-earnings ratio near 171. The market cap equates to roughly 14 times projected 2027 revenue. Using free cash flow margin in a Rule of 40 calculation produces a combined figure near 49.7%.

Analyst price targets include $345 from Rosenblatt, $332 from Barclays and $360 from both Benchmark and Truist. Snowflake has a history of reporting results above consensus in past quarters. Market participants will review the earnings release and management commentary for updates on demand related to AI workloads and any changes to guidance.