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On Monday, Jefferies analyst Brent Thill increased the price target for Snowflake Inc . (NYSE:SNOW) to $220 from the previous target of $190 while maintaining a Buy rating on the company’s shares. With the stock currently trading at $181.96 and showing a remarkable 40.57% gain over the past six months, Thill highlighted Snowflake as the top Artificial Intelligence (AI) breakout play and anticipates more significant AI-driven upside in the latter half of the year. InvestingPro data shows the stock trading near its 52-week high of $194.40, reflecting strong market momentum.
Snowflake’s expectations going into the first quarter of fiscal year 2026 are seen as reasonably balanced, with projected product revenue ranging between $955 million and $960 million. This represents a year-over-year growth of 21-22%, which suggests a sequential deceleration from the company’s previous 29.21% revenue growth. This projection comes as InvestingPro analysts maintain a strong consensus recommendation of 1.78 (where 1 is Strong Buy), with price targets ranging from $115 to $440. Thill noted that readthroughs from the public cloud sector were mostly positive and indicated a stronger-than-expected core cloud demand.
For fiscal year 2026, Snowflake’s product revenue outlook is set at $4.28 billion, marking a 23.6% increase year over year, compared to $3.46 billion in FY25, which saw a 29.8% growth. This forecast suggests an $818 million increase in net additions year over year, compared to $796 million in FY25 and $728 million in FY24. The release of several modules that have recently become generally available and are expected to contribute to higher growth rates in the second half of FY26 supports the analyst’s belief in a meaningful rise in net additions.
The current market estimates for Snowflake’s Remaining Performance Obligations (RPO) predict a 34% year-over-year growth, which is a 1 percentage point sequential acceleration on a tougher growth comparison. Thill suggests this target is achievable, especially if large customers who were previously consuming services on-demand renew their contracts.
Lastly, Thill pointed out that Snowflake is trading at 12 times its estimated CY26 revenue, which is slightly below the large-cap average of 13 times. The analyst believes that Snowflake’s stock has the potential to re-rate positively, driven by a shift in the AI narrative in FY26. According to InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels, though the platform offers 11 additional exclusive ProTips and comprehensive valuation metrics in its Pro Research Report, available to subscribers. The detailed analysis includes a 50-plus page presentation that includes a partner survey for the first quarter.
In other recent news, Snowflake Inc. has been the subject of several analyst updates as the company approaches its first-quarter earnings report. Stifel analysts maintained a Buy rating with a $210 price target, expressing confidence in Snowflake’s performance and highlighting a potential 2-3% upside for the upcoming quarter. They noted the company’s track record of surpassing revenue guidance and the potential for new product features to drive growth in 2026. Similarly, TD Cowen reaffirmed their Buy rating and $210 target, citing positive growth momentum and the potential for fiscal year 2026 projections to rise modestly.
KeyBanc Capital Markets maintained an Overweight rating with a $192 target, based on mixed survey results from Snowflake customers and partners. While there was increased adoption of Snowpark, some customers have curtailed spending due to macroeconomic conditions. BTIG’s analyst confirmed a Buy rating with a $220 target, highlighting Snowflake’s strategic positioning and innovative products expected to drive demand. Meanwhile, Mizuho (NYSE:MFG) adjusted their price target to $190 from $205, maintaining an Outperform rating and emphasizing Snowflake’s robust consumption activity and minimal exposure to federal markets. Despite the reduced target, Mizuho remains optimistic about Snowflake’s growth prospects.
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