Snowflake shows strong growth with $9.8B RPO and 125% retention, but faces growth and profitability concerns.

Snowflake's consumption-based model remains strong, with a record $9.8 billion Remaining Performance Obligations (RPO) in fiscal Q4 FY2026 and a 125% net revenue retention rate, indicating high customer loyalty. Despite this, growth is slowing with expected revenue growth at 27%, and valuation concerns arise as adjusted earnings multiples exceed 90 times, raising questions about GAAP profitability. The company may be misclassified as a SaaS firm, as it avoids typical per-seat pricing risks. The analyst maintains a Buy rating, viewing current price levels as a good entry point if growth steadies and the $120 support holds.