Is SNOW (Snowflake Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, SNOW is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (5.52% vs ≤33% threshold), interest income ratio (4.07% vs ≤5% threshold), and cash & securities ratio (8.12% vs ≤33% threshold).

Snowflake Inc. operates the Data Cloud, a leading cloud-based platform that allows enterprises to consolidate, share, and analyze vast amounts of data. Based in Bozeman, Montana, the company provides essential infrastructure for modern organizations to build data-driven applications and derive actionable business insights across various industries. For Muslim investors using HalalStocks.co.uk, Snowflake represents a strong Shariah-compliant opportunity within the technology sector. The stock successfully passes all four AAOIFI screens, meaning both its core software business and its financial structures align with Islamic investing principles. From an Islamic finance perspective, Snowflake's balance sheet is highly attractive, featuring a minimal debt-to-market cap ratio of just 5.5%. While the company earns some interest income on its cash reserves, it remains below the strict 5% threshold at 4.07%, requiring standard dividend purification by investors. Because Snowflake's interest income to revenue ratio is approaching the 5% limit, Muslim investors should monitor this metric in upcoming quarterly reports. A sudden increase in interest rates or a drop in core software revenue could potentially push this figure past the AAOIFI threshold. Snowflake Inc. operates in the Technology sector under the Software - Application industry and is headquartered in Bozeman, MT, US. The company is led by CEO Sridhar Ramaswamy and employs approximately 7,834 people.

SNOW was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. SNOW passed 4 of these 4 screens.

Although SNOW passes all shariah screens, it does earn $190.6M in interest income (4.07% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $4.07 to purify the income.

SNOW was last screened on 2026-04-27. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.