Snowflake's stock falls as investors weigh a surprise leadership shift
By Emily Bary
Mike Gannon, the software company's chief revenue officer, is departing for personal reasons after a year in the role
Snowflake maintained its quarterly forecast in its latest release.
Snowflake shares are falling on Tuesday as investors weigh the implications of a sudden executive transition.
The data-warehousing software company announced Tuesday morning that Mike Gannon, its chief revenue officer, is leaving for personal reasons. He joined the company about a year ago.
Succeeding Gannon in the position will be Jonathan Beaulier, a company veteran who Snowflake (SNOW) said "has been instrumental in driving Snowflake's growth since 2016."
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CEO Sridhar Ramaswamy added that Beaulier has built a "trusted position in the sales team and with our customers," making him "uniquely positioned to deliver aggressive growth during this transformational time in the market."
Evercore ISI analyst Kirk Materne said in a note to clients that while the news "comes as a bit of a surprise given the success Mr. Gannon had in [fiscal 2026], the fact that Mr. Beaulier is a long-time Snowflake employee should help smooth the transition."
At the same time, he acknowledged that the development could be "a bit of an overhang on the shares in the near term."
Shares of Snowflake are off 2% in morning action.
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The company said in its release that it was reaffirming its forecast for the current quarter and fiscal year. That outlook called for 27% growth in product revenue over both periods.
"Given there is still a month left in the quarter, we do not believe the lack of a 'raise' to the [fiscal first-quarter] guide should be viewed as a negative," Materne said in his note to clients.
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-Emily Bary
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03-31-26 1051ET
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