SNOW'S $10B PROMISE BECAME A 22% GROWTH REALITY FOR INVESTORS -- SUEWALLST

Promise vs. Reality: The Snowflake Performance Gap

NEW YORK, March 26, 2026 /PRNewswire/ -- SueWallSt highlights the contrast between Snowflake Inc.'s (NYSE: SNOW) promises and actual results. A securities class action has been filed on behalf of shareholders who purchased SNOW stock between June 27, 2023 and February 28, 2024. Find out if you can recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] or (888) Suewallst.

Snowflake shares dropped $41.72 per share, an 18.14% decline, after the Company withdrew its $10 billion product revenue target and slashed growth guidance from the market's expected 30% to just 22%. The lead plaintiff deadline is April 27, 2026.

The Promise

On June 27, 2023, at Snowflake's Investor Day, management told investors and analysts: "We still feel very confident that we will reach $10 billion in revenue and product revenue in 2029." That day, management also described Iceberg Tables as fully aligned with Snowflake's business model, characterizing the technology as an opportunity to expand workloads and drive new categories of consumption. New product launches, including Streamlit, Unistore, and Containerized Services, were presented as catalysts that would have "a very positive impact on our consumption." As late as November 2023, the Company reported "strong consumption from a broad base of customers" and highlighted new large account wins.

The Reality

On February 28, 2024, the story changed. The Company disclosed that product efficiency gains were creating a 6.2% to 6.3% annual revenue headwind. The Iceberg Tables technology, previously pitched as a growth driver, was now acknowledged as a factor that would cause large customers to move storage out of Snowflake, eliminating both storage and compute revenue. Tiered storage pricing, which had quietly begun rolling out in Q3 2024, was further compressing revenue from the Company's biggest accounts. The $10 billion 2029 target was withdrawn. Full fiscal year 2025 product revenue guidance came in at approximately $3.25 billion, representing 22% year-over-year growth.

The Numbers: Promised vs. Actual

• 2029 product revenue target: $10 billion promised; withdrawn on February 28, 2024
• FY '25 growth rate: Market expected 30% year-over-year; guided to 22%
• Efficiency headwind: 6.2% to 6.3% annual revenue impact, previously undisclosed
• Storage revenue at risk: 10% to 11% of overall revenue exposed to Iceberg Tables migration
• Jobs vs. revenue gap: 62% increase in daily jobs running on Snowflake, but only 33% corresponding revenue growth
• Insider sales during Class Period: Over $400 million by Company insiders, including over $263 million by the CEO and $28 million by the CFO

What the Lawsuit Contends About the Gap

The complaint asserts that management knew about these headwinds throughout the Class Period because Snowflake tracked consumption and revenue on a daily basis. Large customers had communicated their plans to adopt Iceberg Tables directly to the Company. Tiered storage pricing was a Company-initiated change, not an external market force. Yet investors heard only optimistic projections about consumption recovery and new product tailwinds. The gap between what was promised and what was delivered, the lawsuit contends, caused investors to purchase shares at artificially inflated prices.

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The contrast between Snowflake's $10 billion commitment and its subsequent withdrawal raises important questions about whether shareholders received the transparency they deserved." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering your Snowflake losses or call (212) 363-7500.

LEAD PLAINTIFF DEADLINE: April 27, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

CONTACT:

SueWallSt

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

SOURCE SueWallSt.com