Snowflake (SNOW) stock has been in a sharp downtrend since the start of 2026, leaving investors wondering if the company’s upcoming earnings will help reignite confidence in its growth story. Consensus is for the data platform firm to report a loss of $0.65 per share on Feb. 25, which would translate to a 28% improvement versus the same quarter last year.
Ahead of the financial release, Snowflake stock is down 75% versus its November high.
Snowflake sees its revenue growing by about 27% year-on-year in its fiscal Q4, which would look good on paper, but masks a harsher reality: The company remains deeply unprofitable on a GAAP basis.
In the current market environment that many experts are now calling a “SaaS-pocalypse,” investor appetite for high-multiple growth stories has vanished. They’re no longer rewarding potential; they are demanding realized profits — a sentiment that could make it increasingly difficult for SNOW stock to recover in the near term.
And while Snowflake’s relative strength index (14-day) now signals oversold conditions, its share price staying decisively below major moving averages (MAs) suggest bears are firmly in control.
Stifel analysts also lowered their price target on Snowflake shares this week, saying the company’s Q4 outlook for operating margins to come in at 7% suggests “significant sequential compression.”
Additionally, the cloud-native firm is still trading at a sales multiple of about 12x, which appears stretched given SNOW has yet to turn a profit.
According to Barchart, options data also currently recommends caution in playing Snowflake heading into its earnings release on Wednesday.
Contracts expiring Feb. 27 have the lower price set at roughly $138, indicating SNOW could tank another 12% following the upcoming quarterly report.
Wall Street analysts, however, strongly disagree with options traders on Snowflake.
The consensus rating on SNOW shares remains at a “Strong Buy,” with the mean target of about $265 indicating potential upside of nearly 60% by the end of this year.
