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Etsy and Snowflake Earnings: Key Economic Indicators

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  Published in Stocks and Investing on Wednesday, February 25th 2026 at 13:20 GMT by CNBC
      Locales: California, Texas, Connecticut, UNITED STATES

Wednesday, February 25th, 2026 - Two key companies in their respective sectors, Etsy (ETSY) and Snowflake (SNOW), are reporting earnings today after market close. These reports aren't just about numbers; they are viewed as crucial indicators of the broader economic health, particularly concerning consumer spending and enterprise cloud adoption. Both stocks have experienced volatility in recent months, reflecting investor anxiety about a potentially slowing economy and evolving market dynamics. Today's data will provide valuable insight into whether these companies are successfully navigating the current challenges.

Etsy: Navigating the Headwinds Facing Small Businesses and Discretionary Spending

Etsy, the online marketplace known for handmade and vintage items, has seen its stock price decline approximately 15% year-to-date. This downturn stems from growing concerns about a slowdown in online shopping and the increasing difficulties faced by small businesses - the core of Etsy's seller base. The post-pandemic surge in e-commerce has demonstrably cooled, and consumers are becoming more price-sensitive, impacting discretionary spending.

Investors will be meticulously analyzing Etsy's report, focusing on several key metrics. Gross Merchandise Sales (GMS), the total value of all items sold on the platform, will be a primary focus. A decline in GMS would confirm the slowdown in consumer demand. However, analysts will also be assessing how GMS is changing. Is the decrease broad-based, or is it concentrated in certain product categories? Are higher-priced items experiencing a steeper drop than lower-priced ones?

Beyond GMS, the number of active buyers and sellers will be scrutinized. While maintaining a large user base is important, the quality of those users is critical. Is Etsy attracting and retaining new sellers, or are established sellers leaving the platform due to economic pressures? Similarly, are active buyers increasing their purchase frequency, or are they becoming less engaged?

The impact of Etsy's promotional activity will also be under the microscope. Has increased discounting been effective in driving sales, or is it simply eroding profit margins? Understanding the balance between sales volume and profitability will be essential for assessing Etsy's long-term prospects.

Snowflake: Examining Growth Rate and Profitability in the Cloud Data Landscape

Snowflake, a leading provider of cloud-based data warehousing, has also experienced a degree of market correction in 2026, although its shares remain up over 40% from a year ago. This demonstrates the continued demand for data solutions but also highlights the increased investor scrutiny of growth stocks. While Snowflake continues to dominate the cloud data warehousing market, the rate of growth is expected to moderate as the market matures. Competition from established tech giants like Amazon (AWS), Microsoft (Azure), and Google (GCP) is intensifying.

Analysts will be intently focused on Annual Recurring Revenue (ARR), a key metric for subscription-based businesses like Snowflake. While ARR growth is expected, the magnitude of that growth will be critical. A significant deceleration in ARR would signal that Snowflake is losing market share or facing increased competition.

Remaining Performance Obligations (RPO) will provide insight into future revenue visibility. RPO represents the value of contracts that Snowflake has already signed but hasn't yet recognized as revenue. A healthy and growing RPO indicates strong future demand.

Critically, investors will be looking at Snowflake's profit margins. Snowflake, while a high-growth company, has historically prioritized revenue growth over profitability. However, the current economic climate is forcing companies to demonstrate a path to sustainable profitability. Evidence of improving margins will be viewed favorably by investors. The company's guidance for the upcoming quarters will be particularly crucial, offering a glimpse into its expectations for future growth and profitability. A conservative outlook could spook investors, while an overly optimistic one might be met with skepticism.

Broader Implications

The earnings reports from Etsy and Snowflake provide a microcosm of the broader economic landscape. Etsy reflects the health of consumer spending and the challenges faced by small businesses, while Snowflake offers a window into the enterprise cloud market. Strong results from both companies would suggest resilience in the face of economic headwinds, potentially signaling a more optimistic outlook for the market as a whole. Conversely, disappointing reports could reinforce concerns about a looming recession and further dampen investor sentiment.