Snowflake’s Set To Open at New High – Analysts Raise Stock PTs on Earnings Beat

Snowflake’s stock (NYSE: SNOW) are currently rallying pre-market, up 9.54% at $196.20. This would mark a new high for Snowflake, with the previous level of $194.40 firmly under threat on the back of solid earnings.

In its fiscal Q1 2026 report, Snowflake announced adjusted earnings per share (EPS) of $0.24, marking a substantial increase from $0.14 in the same period the previous year. The company’s revenue saw a 26% year-over-year increase, reaching $1.04 billion, which surpassed the consensus estimate of $1.01 billion. A major contributor to this growth was the company’s product revenue, which climbed 26% to $996.8 million, exceeding the expected range of $955 million to $960 million.

Snowflake’s financial metrics further underscore its strength on the quarter. The adjusted operating margin improved to 9%, compared to the company’s projected rate of 5%, as the net revenue retention rate reached 124% as of April’s end. Remaining performance obligations (RPO) also grew by 27% to $6.7 billion, although this represented a slowdown from the 33% growth seen in the prior quarter.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

The company’s customer base expanded significantly, with 606 customers generating over $1 million in trailing 12-month product revenue, reflecting a 27% growth. Snowflake also reported having 754 Forbes Global 2000 customers, which is a 4% increase from previous figures.

Looking ahead, Snowflake revised its second-quarter product revenue forecast to a range of $1.035 billion to $1.040 billion, anticipating a 25% year-over-year growth. The adjusted operating margin for the upcoming quarter is expected to be around 8%. For the entire fiscal year 2026, Snowflake raised its product revenue guidance to $4.325 billion from a previous estimate of $4.280 billion, while maintaining its adjusted operating margin guidance at 8%.

Many analysts have updated their price targets on Snowflake following their stellar Q1 performance. Citizens JMP ( $245 from $201) , Barclays ($219 from $203), Mizuho ($205 from $190), and Jefferies ($220 from $190) were all quick to raise price targets on the stock, with either Outperform, or Buy ratings.

Excluding a short period in February last year, SNOW has not traded above $200 since early 2022, more than three years ago. A breakout above this level could well provide bulls with near term momentum, although some resistance could be expected.