Snowflake Eyes Q1 Momentum As AI Partnerships Stack Up: Goldman Sachs

Snowflake Inc. (NYSE:SNOW), a cloud-based data storage provider, will report its first-quarter results on Wednesday, May 21.

According to Goldman Sachs, Snowflake's fundamentals are strengthening, and the company is likely to report strong quarterly results and guidance.

The Snowflake Analyst: Analyst Kash Rangan maintained a Buy rating and price target of $205.

The Snowflake Thesis: The Bozeman, Montana-based company is likely to report Product Revenue growth of 21% and non-GAAP operating margins of 5%, in-line with consensus estimates, Rangan said in the note.

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There is potential for "beat and flow-through, supported by Datadog and Hyperscalers seeing stable consumption trends in April," he added.

Core Data Engineering is scaling quickly, driven by Snowpark and Dynamic Tables, while Cortex could benefit from AI momentum into the back half of the year, the analyst stated. Recent partnerships with Microsoft/OpenAI and Anthropic help Snowflake increase credibility and reach, he further stated.

"We believe Snowflake's strengthening fundamentals, new product velocity under CEO Ramaswamy's strategic leadership, a more efficient GTM motion, and recent tariff relief serve as net-positives for underwriting 2H growth acceleration," Rangan wrote.

Price Action: Shares of Snowflake had declined by 0.45% to $182.34 at the time of publication on Monday.

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