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On Thursday, Citizens JMP increased the price target for Snowflake Inc . (NYSE:SNOW) shares to $245 from the previous target of $201, while retaining a Market Outperform rating. The adjustment follows Snowflake’s first-quarter fiscal year 2026 earnings report, which surpassed analysts’ expectations. According to InvestingPro data, analyst targets for the stock range from $115 to $440, with the company currently commanding a market capitalization of nearly $60 billion. InvestingPro analysis suggests the stock is trading above its Fair Value, with several key metrics indicating rich valuations.
Snowflake announced non-GAAP earnings per share (EPS) of $0.24, beating the consensus of $0.21. Total (EPA:TTEF) revenue reached $1.04 billion, also exceeding the expected $1.01 billion, marking a 22% year-over-year growth. This is a slight deceleration compared to the 27% growth reported in the previous quarter. Product revenue was particularly strong at $997 million, topping estimates by $38 million or 4%, and showing a 26% increase from the same period last year. InvestingPro data reveals the company maintains a healthy gross profit margin of 67% and operates with moderate debt levels. Subscribers can access 8 additional ProTips and comprehensive financial metrics in the Pro Research Report.
Despite these robust figures, Snowflake’s free cash flow of $183.4 million fell short of the consensus forecast of $384 million. The company explained that this was due to two large renewals that were delayed from the fourth quarter of the previous fiscal year into the first quarter of fiscal year 2026. Nonetheless, Snowflake maintained an 18% free cash flow margin.
The total remaining performance obligations (RPO), which indicate future revenue that is under contract but not yet recognized, stood at $6.69 billion. This was above the consensus estimate of $6.59 billion and represented a 34% year-over-year increase, slightly outpacing the 33% growth observed in the last quarter.
Following the earnings report, Snowflake shares experienced a 7% rise in after-market trading. This uptick adds to the stock’s impressive performance year to date, which has seen an increase of 19%, outperforming both the S&P 500’s 1% decline and the Russell 3000’s 1% decrease over the same period.
In other recent news, Snowflake Inc. reported its first-quarter financial results for 2025, surpassing Wall Street expectations. The company achieved an earnings per share of $0.24, exceeding the forecasted $0.21, and reported revenue of $1.04 billion, which was higher than the anticipated $1.01 billion. Snowflake’s product revenue rose by 26% year-over-year, and the company added 451 new customers, reflecting its market expansion efforts. Morgan Stanley (NYSE:MS) updated its outlook on Snowflake, raising the price target to $200 from $185, while maintaining an Equalweight rating. The firm noted Snowflake’s stable core business and growing momentum in data engineering, alongside early signs of progress in artificial intelligence and applications. Snowflake’s CEO, Sridhar Ramaswamy, was highlighted for his role in the company’s successful turnaround. The company’s second-quarter product revenue is projected to be between $1.035 billion and $1.040 billion, with full fiscal year 2026 revenue guidance maintained at $4.325 billion.
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