Oppenheimer raises Snowflake stock price target to $275 on strong results

Published 28/08/2025, 05:42
Oppenheimer raises Snowflake stock price target to $275 on strong results

Investing.com - Oppenheimer raised its price target on Snowflake Inc. (NYSE:SNOW) to $275.00 from $250.00 while maintaining an Outperform rating following the company’s strong second-quarter fiscal 2026 results. The new target represents significant upside from the current price of $200.39, with analyst targets ranging from $150 to $440. According to InvestingPro analysis, the stock appears to be trading near its Fair Value.

Snowflake delivered accelerated product revenue growth of 31.5% year-over-year, compared to 26.2% in the previous quarter, driven by broad-based demand and increased platform consumption. The company’s net revenue retention rate improved to 125%, while remaining performance obligations increased 32.5% year-over-year. InvestingPro data shows trailing twelve-month revenue reached $3.84 billion, with a robust gross margin of 66.6%, though the company remains unprofitable with a -$4.21 EPS.

The data cloud company reported growth in its customer base, with accounts generating more than $1 million in revenue increasing 29.8% year-over-year to 654. New products including Snowpark, Cortex, and Dynamic Tables outperformed expectations, according to Oppenheimer.

Artificial intelligence engagement continued to scale rapidly across Snowflake’s platform, now reaching 6,100+ accounts. The company also raised its fiscal year 2026 guidance following the strong quarterly performance.

Oppenheimer noted that Snowflake continues to scale its sales and go-to-market strategy through hiring, specialized selling, training, and technology partnerships, which positions the company well for broader platform engagement. The stock has demonstrated strong momentum with a 79.6% return over the past year. For deeper insights into Snowflake’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, along with 7 additional key ProTips for informed investment decisions.

In other recent news, Snowflake Inc . reported robust financial results for its fiscal Q2 2025, exceeding expectations with earnings per share of $0.38, compared to the anticipated $0.27. The company also surpassed revenue forecasts, reporting $1.14 billion against a projected $1.09 billion. This strong performance led to several analyst firms adjusting their price targets for Snowflake. Mizuho raised its price target to $260, emphasizing the company’s impressive product revenue growth of 31.5% year-over-year, which significantly exceeded Wall Street’s expectations. Truist Securities also increased its price target to $270, citing a powerful acceleration in Snowflake’s product revenue and a notable top-line acceleration. Similarly, Jefferies raised its target to $270, highlighting a record $53 million revenue beat and a product revenue growth acceleration to 32% year-over-year. These developments reflect the positive sentiment among analysts regarding Snowflake’s recent performance and future potential.

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