Snowflake (XSWX:SNOW) Operating Margin %: -23.45% (As of Apr. 2026)


XSWX:SNOW Snowflake Inc XSWX:SNOW
56 GF Score
Price CHF186.76
GF Value CHF222.89
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Snowflake Operating Margin %?

Snowflake XSWX:SNOW -0.11% 56 Operating Margin % is -23.45% as of Apr. 2026. GuruFocus rates XSWX:SNOW with a GF Score™ of 56/100 and a GF Value™ of CHF222.89 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,818 Software companies, Snowflake ranks worse than 80.87% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Snowflake's Operating Income for the three months ended in Apr. 2026 was CHF-257 Mil. Snowflake's Revenue for the three months ended in Apr. 2026 was CHF1,096 Mil. Therefore, Snowflake's Operating Margin % for the quarter that ended in Apr. 2026 was -23.45%.

Good Sign:

Snowflake Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Snowflake's Operating Margin % or its related term are showing as below:

XSWX:SNOW' s Operating Margin % Range Over the Past 10 Years
Min: -191.86   Med: -49.71   Max: -26.11
Current: -26.11


XSWX:SNOW's Operating Margin % is ranked worse than
80.87% of 2818 companies
in the Software industry
Industry Median: 3.875 vs XSWX:SNOW: -26.11

Snowflake's 5-Year Average Operating Margin % Growth Rate was 17.40% per year.

Snowflake's Operating Income for the three months ended in Apr. 2026 was CHF-257 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was CHF-1,043 Mil.


Snowflake  (XSWX:SNOW) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Snowflake Operating Margin % Related Terms


Snowflake Operating Margin % Historical Data

* Premium members only.

The historical data trend for Snowflake's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Snowflake Operating Margin % Chart

Snowflake Annual Data
Trend Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Margin %
Get a 7-Day Free Trial -58.64 -40.77 -39.01 -40.15 -30.64

Snowflake Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -42.92 -29.72 -27.16 -24.78 -23.45

XSWX:SNOW vs ADP, DDOG, INTU: Operating Margin % Comparison

For the Software - Application subindustry, Snowflake's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Snowflake Operating Margin % vs Software Industry

For the Software industry and Technology sector, Snowflake's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Snowflake's Operating Margin % falls into.


XSWX:SNOW
56GF Score
Snowflake Inc XSWX:SNOW
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Snowflake Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Snowflake's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as

Operating Margin %=Operating Income (A: Jan. 2026 ) / Revenue (A: Jan. 2026 )
=-1132.919 / 3697.507
=-30.64 %

Snowflake's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2026 ) / Revenue (Q: Apr. 2026 )
=-256.879 / 1095.513
=-23.45 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -23.45% mean?
Snowflake (XSWX:SNOW) has a Operating Margin % of -23.45% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Snowflake and its competitors. According to the industry distribution chart, Snowflake ranks #2279 out of 2818 companies in the Software industry, placing it in the top 80.9%.
Is Snowflake's Operating Margin % too high?
Snowflake's current Operating Margin % is -23.45%. Based on the distribution chart, Snowflake ranks #2279 out of 2818 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Snowflake has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Snowflake's Operating Margin % compare to ADP and DDOG?
According to the Software industry distribution chart, Snowflake ranks #2279 out of 2818 companies for Operating Margin %. This places Snowflake in the lower half of its industry. The industry median Operating Margin % is 3.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Snowflake and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Snowflake's current Operating Margin % is -23.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Snowflake stock overvalued right now?
Based on GuruFocus' analysis, Snowflake (XSWX:SNOW) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF222.89, compared to a current price of CHF186.76 — trading 16.2% below its estimated fair value. The current Operating Margin % is -23.45%. Snowflake's overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Snowflake (XSWX:SNOW), the current Operating Margin % is -23.45% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Snowflake (XSWX:SNOW) Overvalued in 2026?

Based on GuruFocus' analysis, Snowflake stock appears to be undervalued. The current stock price of CHF186.76 is trading 16.2% below its estimated GF Value™ of CHF222.89. GuruFocus considers Snowflake to be Modestly Undervalued.

Key valuation signals for XSWX:SNOW:

  • Operating Margin %: -23.45%
  • GF Value™: CHF222.89 vs. price of CHF186.76 (16.2% below fair value)
  • GF Score™: 56/100 with 3 warning signs

No single metric tells the full story. See the XSWX:SNOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Snowflake Business Description

Address 135 Constitution Drive, Menlo Park, CA, USA, 94025
Founded in 2012, Snowflake is a fully managed platform that consolidates data hosted on different public clouds for centralized analytics and governance. Snowflake's cloud-native architecture allows users to independently scale the compute and storage layers, providing customers with optimized performance at lower costs. The company's data lake and data warehouse products support a variety of use cases, including business analytics, data engineering, and artificial intelligence. Snowflake is widely used by Fortune 2000 companies in financial services, media, and retail sectors.
56GF Score

Get the complete analysis for XSWX:SNOW

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF186.76
Price
CHF222.89
GF Value