Snowflake Pops After Solid Quarter: Analysts See Strength In AI, New Workloads

Shares of Snowflake Inc (NYSE:SNOW) rallied after the company Wednesday reported its first-quarter results.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

Piper Sandler On Snowflake

Analyst Brent Bracelin reiterated an Overweight rating, while raising the price target from $175 to $215.

Snowflake's total revenue surpassed $1 billion in the first quarter, driven by "another quarter of strong execution and better-than-expected contribution from new products," Bracelin said in a note. Large deal momentum continued, with the company inking two deals worth more than $100 million during the quarter, he added.

These deals contributed to Snowflake's healthy backlog metrics, with cRPO (current remaining performance obligation) accelerating to 31% year-on-year, from the previous quarter's 27%, the analyst stated. "Management has not yet witnessed any negative macro impacts, partially attributable to a more mature customer base, and even cited strong customer net adds (451 vs. 357 one year ago)," he further wrote.

Stifel On Snowflake

Analyst Brad Reback maintained a Buy rating, while lifting the price target from $210 to $220.

Snowflake posted a strong quarter, with growth in product revenue accelerating to 4%, from 3% in the previous quarter, Reback said. This was driven by "outperformance from newer products (Snowpark, Dynamic tables), no tangible impact from the macro, and broad-based consumption strength," he added.

The company's operating margins came in better than expected, with operating expenses growing only 15% year-on-year, a sharp deceleration from 36% in the first quarter of the last fiscal year, the analyst stated. With Snowflake yet to reap "the full benefits from the R&D hiring changes," the current margin gains appear sustainable, he further wrote.

JMP Securities On Snowflake

Analyst Patrick Walravens reaffirmed a Market Outperform rating, while raising the price target from $201 to $245.

Snowflake reported total revenue of $1.04 billion, beating consensus of $1.01 billion, Walravens said. The company's non-GAAP earnings of 24 cents per share surpassed expectations of 21 cents per share, he added.

The company's second-quarter guidance came in better than expected, with product revenue of $1.035-$1.040 billion above consensus $1.021 billion, representing 25% year-on-year growth and non-GAAP operating margin of 8% ahead of consensus of 7%, the analyst stated. "Snowflake addresses a huge opportunity that is expected to double to $342B in 2028 from $152B in 2023," he further wrote.

Check out other analyst stock ratings.

Truist Securities On Snowflake

Analyst Joel Fishbein reiterated a Buy rating, while lifting the price target from $210 to $235.

Snowflake delivered a strong beat and raise quarter, "driven by both core momentum and the adoption of new workloads," Fishbein said. Management raised their fiscal 2026 product revenue growth guidance to 25%, from their prior projection of 24%, he added.

"We did not hear signs of macro uncertainty impacting consumption on the call and believe that they are establishing the foundation of a strong go to market motion in the emerging AI landscape," the analyst further wrote.

Oppenheimer On Snowflake

Analyst Ittai Kidron maintained an Outperform rating, while raising the price target from $201 to $225.

Snowflake delivered strong quarterly results, driven by "broad-based demand and steady consumption trends," Kidron said. The company's total customers grew by 18.9% year-on-year to 11,578 in the quarter, he added.

"In addition, better-than-expected Snowpark and Dynamic Tables activity and strong AI adoption (5,200+ accounts) suggest that newer products are resonating with customers," the analyst wrote. He named Snowflake as a top pick.

Rosenblatt Securities On Snowflake

Analyst Blair Abernethy reaffirmed a Buy rating, while raising the price target from $205 to $210.

Snowflake reported margins of 9%, versus Rosenblatt's 5% estimate, on the back of its revenue beat and ongoing efficiency improvements, Abernethy said. Snowflake had strong renewals during the quarter, including two deals worth over $100 million each, he added.

The company's trailing NRR (net revenue retention) remained healthy, at 124%, the analyst stated. "We believe Snowflake's much improved product development cadence last year is clearly resonating with existing customers, driving increasing consumption levels," he further wrote.

Needham On Snowflake

Analyst Mike Cikos reiterated a Buy rating, while lifting the price target from $215 to $230.

Snowflake outperformed its revenue guidance by $36.8 million and raised its full-year outlook by $45 million, Cikos said. For the second quarter, the company's revenue guidance came in $15.1 million above consensus, he added.

"Investors are hunting for high-growth companies, and we believe Snowflake’s updated FY26 Revenue outlook for 25% yr-yr growth answers the call," the analyst wrote. GenAI is likely to be "a long-term secular tailwind to Snowflake’s growth," he further stated.

SNOW Price Action: Shares of Snowflake had risen by 10.3% to $197.55 at the time of publication on Thursday.

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