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.

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.