Earnings Diverge: SNOW and CRWD Stock Soar After Decent Q2
Snowflake and CrowdStrike both beat Wall Street’s expectations in their Q2 results, but market reactions diverged sharply, underscoring...
Quick overview
- Snowflake and CrowdStrike both exceeded Q2 earnings expectations, but market reactions varied significantly.
- CrowdStrike's stock fell nearly 8% after a disappointing Q3 outlook, despite strong earnings and revenue growth.
- In contrast, Snowflake's shares surged over 13% in after-hours trading due to positive earnings and raised guidance.
- The divergent market responses highlight the importance of future guidance and investor sentiment in evaluating company performance.
Snowflake and CrowdStrike both beat Wall Street’s expectations in their Q2 results, but market reactions diverged sharply, underscoring how guidance and sentiment weigh just as heavily as earnings surprises.
CrowdStrike Under Pressure
CrowdStrike posted another solid quarter with earnings and revenue coming in ahead of forecasts. However, the stock fell sharply in after-hours trading as the company’s Q3 outlook left investors wanting more. Shares slid nearly 8% immediately after the report, dipping below $390 from a close of $422. The stock later trimmed losses, recovering above $400, but still finished the session down almost 4%.
CRWD Chart Daily – The Downtrend Continues
From a technical standpoint, CRWD remains stuck in a downtrend that began in early July, currently trading about 20% below its peak of $518. The stock also continues to hover under the 200-day simple moving average (SMA), a key resistance level, which signals that bearish momentum may persist unless stronger catalysts emerge.
Snowflake Breaks Higher
Snowflake delivered a different story altogether. After closing at $200.39, SNOW jumped more than 13% in after-hours trading as upbeat earnings and raised guidance fueled optimism. The company highlighted accelerating momentum in data infrastructure demand, particularly in AI-driven applications, which investors took as a sign of sustainable growth ahead.
SNOW Chart Daily – The Trend Is Changing
The technical setup also played in Snowflake’s favor. Earlier this month, the 20-day SMA held firm as support, and with the strong earnings print, the stock is set to gap higher at the next open, reinforcing bullish sentiment.
Snowflake and CrowdStrike Beat Q2 Forecasts, Boost Guidance for FY25/26
Snowflake Q2 2025 Results
- Revenue: $1.14B (vs. $1.09B forecast)
- EPS: $0.38 (vs. $0.27 forecast) → 40.74% surprise
- Non-GAAP Operating Margin: 11%
- Remaining Performance Obligations (RPO): $6.9B, up 33% YoY
Earnings vs. Forecast
- Strong beat on both revenue and EPS, reflecting robust execution and high demand for cloud solutions.
- Marks one of Snowflake’s best quarterly surprises compared to previous periods.
Outlook & Guidance
- Full-year product revenue guidance raised to $4.395B (+27% YoY).
- Q3 product revenue expected between $1.125B–$1.130B.
- Continued focus on AI and data infrastructure investments.
- Analyst sentiment remains bullish with price targets ranging $150–$440.
- Financial Health: Rated FAIR by InvestingPro, with strong growth and cash flow metrics.
Snowflake Executive Commentary
CEO Sridhar Ramaswamy underscored Snowflake’s position at the forefront of AI-driven data platforms, describing it as the leading solution in the industry. He stressed the company’s focus on driving data modernization and expanding its capabilities, noting that Snowflake is laying a solid foundation to support continued large-scale growth.
CrowdStrike Q2 2025 Results
- Revenue: $1.17B, up 21% YoY (vs. $1.15B forecast)
- EPS: $0.93 (vs. $0.83 forecast) → 12.05% surprise
- Free Cash Flow: Record $284M (24% of revenue)
- Operating Income: Record $255M (22% of revenue)
Earnings vs. Forecast
- Beat on both EPS and revenue, underscoring strength in cybersecurity demand.
- Growth particularly strong in AI-driven security offerings.
Outlook & Guidance
- Full-year revenue projected at $4.75B–$4.81B.
- ARR expected to grow over 22%, with a goal of surpassing $5B ARR by FY-end.
- Long-term plan to reach $10B ARR by FY2031, showing aggressive expansion targets.
CrowdStrike Executive Commentary
CEO George Kurtz highlighted the sweeping influence of artificial intelligence, explaining that AI is reshaping society and transforming the way businesses operate. He pointed to CrowdStrike’s critical role in advancing AI-driven cybersecurity, emphasizing that the company is positioning itself as the backbone of its customers’ AI-powered future.
Conclusion: While both Snowflake and CrowdStrike surpassed analyst estimates, the market’s split reaction underscores how forward guidance and broader investor sentiment can outweigh headline numbers. Snowflake’s upbeat outlook and strong positioning in AI-driven data infrastructure gave the stock fresh momentum, while CrowdStrike’s cautious guidance overshadowed otherwise impressive results. Together, the two reports highlight the market’s growing focus on future growth drivers in cloud and cybersecurity as these sectors continue to define the next wave of enterprise technology.
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