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On Thursday, Cantor Fitzgerald analyst Thomas Blakey updated the firm’s outlook on Snowflake Inc . (NYSE: NYSE:SNOW), raising the price target from $201.00 to $228.00. The Overweight rating on the company’s shares remains unchanged. Currently trading at $166.19, the stock has experienced a significant 43.8% gain over the past six months, despite a recent 10.2% pullback in the past week, according to InvestingPro data. This adjustment follows the company’s release of its fourth-quarter results, which Blakey highlighted as Snowflake’s most significant fourth-quarter beat in three years, at 3.8%.
Snowflake’s performance was attributed to consistent consumption trends and a 3% contribution from Snowpark, its developer framework. Blakey’s analysis noted that improved consumption trends, as indicated by strong fourth-quarter results from similar companies, suggest that consumption-based businesses like Snowflake are poised to accelerate growth into calendar year 2025 (C25).
However, the analyst considers the first-quarter 2026 guidance provided by Snowflake to be conservative, even after adjusting for calendar variations such as Leap Years. Blakey anticipates that the actual performance could surpass the guidance, as historically, dollars added in the first quarter have maintained a minimum of $30 million over the past three years, in contrast to the $14 million implied by the company’s guidance.
Looking ahead to the full fiscal year 2026, the guidance indicates an expected increase in revenue growth in the second half, which Blakey believes will be spurred by new products in artificial intelligence/machine learning (AI/ML) and Data Engineering introduced in fiscal year 2025. The company has demonstrated strong revenue growth of 30.3% over the last twelve months, maintaining impressive gross profit margins of 67.3%. For deeper insights into Snowflake’s growth metrics and AI potential, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 1,400+ other top stocks. With reported Remaining Performance Obligations (RPO) growth nearing $7 billion and an increase of 33%, the analyst pointed to the stable core data warehousing business and consistent consumption patterns as indicators of potential revenue growth. Additionally, the introduction of new AI-driven product cycles could further enhance Snowflake’s revenue prospects.
Blakey’s commentary underscores Snowflake’s potential as a data-driven platform well-positioned to benefit from the increasing production of AI workloads. The firm’s analysis suggests that Snowflake’s strategic focus and product offerings could lead to continued financial growth and success in the evolving data management and analytics market.
In other recent news, Snowflake Inc. reported a strong performance in its fourth-quarter results for fiscal year 2025, surpassing analyst expectations with an earnings per share of $0.30, significantly higher than the forecasted $0.17. The company also exceeded revenue projections, reporting $986.8 million against an expected $956.22 million. Full-year product revenue reached $3.5 billion, marking a 30% year-over-year increase. Piper Sandler raised its price target for Snowflake to $215, noting the company’s robust consumption strength and the successful introduction of new products like Snowpark, which contributed to a 28% year-over-year product growth. Jefferies maintained a Buy rating with a $220 price target, emphasizing Snowflake’s potential in the artificial intelligence sector and its promising fiscal year 2026 guidance. Canaccord Genuity also reiterated a Buy rating with a $220 price target, expressing confidence in Snowflake’s financial health and product revenue growth. Analysts highlighted Snowflake’s strategic innovations and new product capabilities, which are expected to contribute to growth acceleration in the latter half of the fiscal year.
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