Snowflake Inc. (NYSE:SNOW) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 3, the company released its financial results for Q3 2026, with revenue coming at $1.21 billion, reflecting 29% YoY growth amidst 29% YoY growth in product revenue to $1.16 billion.
Snowflake Inc. (NYSE:SNOW)’s product revenue rose $258.1 million and $726.6 million for 3 and 9 months ended October 31, 2025 on a YoY basis, respectively, primarily because of higher consumption of its platform by existing customers. This is evidenced by the net revenue retention rate of 125% as of October 31, 2025. The company saw an operating loss of $329.4 million in Q3 2025 compared to $365.4 million in Q3 2024, amidst an increase in total operating expenses of ~16.7% YoY to $1.15 billion and a higher gross profit.
As of October 31, 2025, Snowflake Inc. (NYSE:SNOW)’s RPO came at $7.9 billion, of which it anticipates ~48% to be recognized as revenue in the 12 months ending October 31, 2026 considering the historical customer consumption patterns. For Q4 2026, the company expects product revenue of between $1,195 million – $1,200 million, reflecting a growth of 27% on a YoY basis. The company expects a non-GAAP operating margin of 7%.
In a different update, on December 8, Citi reduced its price objective on the company’s stock to $300 from $310, while keeping a “Buy” rating.
Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform for various organizations in the US and internationally.
While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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