Strong earnings and AI vision vs. cautious guidance and valuations

Snowflake posted a strong Q4 beat, with product revenue up around 30% and EPS topping estimates, while its annual loss narrowed but still totaled roughly $1.3 billion. Management leaned heavily into an expanding AI and data platform, with several analysts arguing this could re-accelerate growth by fiscal 2027. Yet the company’s revenue outlook underwhelmed, triggering selling pressure and a sharp year-to-date stock decline. Wall Street’s response is mixed: many firms cut price targets on valuation and profitability concerns but largely maintain Overweight/Outperform ratings, and some see signs that the stock’s meltdown may be bottoming as AI demand builds.