Citizens JMP raises Snowflake stock price target to $283 on strong earnings

Published 28/08/2025, 09:56
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - Citizens JMP raised its price target on Snowflake Inc. (NYSE:SNOW) to $283.00 from $260.00 while maintaining a Market Outperform rating following the company’s second-quarter fiscal 2026 results. According to InvestingPro data, analyst targets for the $66.7 billion company range from $150 to $440, with the stock currently trading above its Fair Value.

Snowflake reported non-GAAP earnings per share of $0.35, exceeding the consensus estimate of $0.27, and total revenue of $1.14 billion, surpassing the consensus of $1.09 billion. The company’s revenue grew 32% year-over-year, accelerating from 26% growth in the previous quarter. InvestingPro analysis shows the company maintains strong growth momentum with a 27.5% revenue increase over the last twelve months, though it remains unprofitable with negative earnings.

Product revenue reached $1.09 billion, beating consensus estimates by approximately $52 million or 5%, and also grew 32% year-over-year compared to 26% in the prior quarter. The company’s total remaining performance obligations (RPO) stood at $6.93 billion, up 33% year-over-year.

Free cash flow came in at $58.2 million, missing the consensus estimate of $118.1 million, representing approximately 5% free cash flow margin, which Citizens JMP attributed to seasonality.

The strong quarterly results drove Snowflake shares up 13% in after-hours trading, adding to the stock’s 30% year-to-date gain, which has outperformed both the S&P 500 and Russell 3000 indices, each up 10% over the same period.

In other recent news, Snowflake Inc . reported stronger-than-expected fiscal second-quarter results, which prompted several financial firms to raise their price targets for the company. Goldman Sachs increased its target to $260, highlighting Snowflake’s product revenue growth of 32% and improved contracted remaining performance obligations. UBS also raised its target to $285, noting the company’s revenue growth exceeded the anticipated range, showing a 5-point sequential acceleration. Oppenheimer set its target at $275, citing the company’s net revenue retention rate of 125% and a year-over-year increase in remaining performance obligations. Mizuho followed suit with a target increase to $260, describing the earnings as "outstanding" with product revenue growth of 31.5% year-over-year, surpassing Wall Street’s expectations. JPMorgan raised its price target to $255, emphasizing Snowflake’s advancements in artificial intelligence and machine learning. These developments reflect a positive outlook from analysts regarding Snowflake’s recent performance and innovation efforts.

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