Snowflake Earnings - What You Need to Know About Expectations for a Volatile Report

Will this week’s earnings fuel further gains or test investor confidence?

• Snowflake will report quarterly earnings tonorrow after the market closes.
• The company is expected to announce earnings-per-share (EPS) of $0.22 on $1 billion in revenue.
• The data storage provider has posted three strong earnings announcements in a row, exceeding both EPS and revenue estimates.
• Sustainable growth strategies will be in focus this earnings call with demand the company’s product at highs.

Snowflake (SNOW) is set to report quarterly earnings after the market closes tomorrow, and investors are pricing in a big stock price range for the announcement.

The cloud-based American data storage company works with more than 700 of the Forbes Global 2000 customers, which includes some of the largest public companies. It has crushed its past three earnings announcements, exceeding earnings-per-share (EPS) estimates by double digit percentages each time. It's no surprise to see relative strength as the company is the leading cloud-based data storage company, fully entrenched in the AI boom.

Snowflake is expected to report EPS of $0.22 on $1 billion in revenue. Both figures are higher than last quarter's estimates.

The company’s stock opened at $157 to start the 2025 trading year, and it's one of the few big-name tech stocks that’s up big on the year after recovering from the tariff tumble. Trading around $183 per share, the stock is up nearly 20% YTD.

Snowflake CEO Sridhar Ramaswamy expressed strong positive sentiment in the last earnings call: “We delivered another strong quarter, with product revenue of $943 million, up a strong 28% year-over-year, and remaining performance obligations totaling $6.9 billion ... Today, Snowflake is the most consequential data and

AI company in the world. More than 11,000 customers are already betting their business on our easy-to-use, efficient and trusted platform. We see tremendous opportunities ahead to support our customers throughout their end-to-end data lifecycle, and we are laser-focused on delivering on this vision.”

Looking at the options market can help us put context around the expected move for the week of the earnings announcement. In this week's options expiration, we can see a +/- $18.05 expected stock price range based on current implied volatility. This range is derived from the price of options relative to the stock price given the timeframe. Most companies fall between 5-10% of the notional value of the stock price, placing Snowflake earnings on the higher end clocking in at just under 10% of the stock price. With just a +/- $30.41 expected range through the August options expiration, it's clear the market is placing a huge weight on this week's earnings announcement.

Bullish on Snowflake stock for earnings

If you're bullish on SNOW stock for earnings, you're looking for figures that exceed EPS and revenue estimates yet again. Snowflake continues to scale with AI demand, as they recently acquired AI startup Datavolo. Snowflake has partnerships with over 30% of the Forbes Global 2000 companies, which could give bullish traders some sort of potential floor for the cloud data company.

Bearish on Snowflack stock for earnings

If you're bearish on SNOW stock for earnings, you're looking for an EPS or revenue miss this quarter. With three strong reports in a row, any miss could send the stock price lower. If executives take their foot off the gas in the earnings call and expect weaker quarters through 2025, that could also be a catalyst for a stock price sell-off. High implied volatility around earnings speaks to uncertainty, which isn't always a good thing.

Tune in to Options Trading Concepts Live at 11 a.m. CDT tomorrow for a look at options trading strategies for Snowflake earnings.
Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb  

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