Snowflake's Q2 2025 earnings report revealed a mixed performance, with the company reporting a top and bottom line beat but facing challenges that led to a decline in stock value. Snowflake's stock fell by approximately 8.2% after-hours and 10% premarket, despite reporting nearly $870 million in revenue, which exceeded expectations. The company's guidance for future quarters was underwhelming, contributing to the stock's decline. Additionally, Snowflake's stock-based compensation accounted for 41% of its revenue, raising concerns among investors. Analysts have adjusted their price targets for Snowflake, with Jefferies lowering its target to $145 from $160 and Goldman Sachs maintaining a buy rating but expressing concerns about the guidance falling short of high expectations.