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Investing.com - Goldman Sachs raised its price target on Snowflake Inc. (NYSE:SNOW) to $260 from $230 while maintaining a Buy rating following the company’s stronger-than-expected fiscal second-quarter 2026 results. The cloud data company, currently valued at $66.7 billion, has delivered an impressive 79.6% return over the past year according to InvestingPro data.
Snowflake shares jumped 13% in after-hours trading after reporting acceleration across key metrics, including product revenue growth of 32% compared to 26% in the first quarter, and contracted remaining performance obligations (cRPO) growth of 33% versus 31% previously. While the company maintains strong growth with trailing twelve-month revenue of $3.84 billion, InvestingPro data shows it’s still working toward profitability with a net loss of $1.4 billion.
The company also posted improvements in net revenue retention (NRR) at 125% compared to 124% in the first quarter, along with record net additions of 48 new customers with contracts exceeding $1 million.
Goldman Sachs credited Snowflake’s "best-in-class" profile featuring over 30% revenue growth and more than 25% free cash flow margin, expressing increased conviction in the company’s ability to scale to over $10 billion in revenue.
The investment bank highlighted Snowflake’s evolving narrative, noting its strong position in core data analytics, improving product positioning, and AI execution through new offerings including Cortex AISQL, Snowflake Intelligence, Openflow, SnowConvert AI, and Gen2 architecture delivering twice faster performance.
In other recent news, Snowflake Inc . has seen several analysts raise their price targets following its impressive second-quarter results. UBS increased its price target to $285, noting a strong data cycle and product revenue growth of 32%, which exceeded expectations. Oppenheimer also raised its target to $275, highlighting a year-over-year product revenue growth of 31.5% and an improved net revenue retention rate of 125%. Mizuho set its price target at $260, citing "outstanding" earnings that surpassed Wall Street’s expectations. Truist Securities adjusted their target to $270, attributing the increase to a significant acceleration in product revenue. Additionally, JPMorgan revised its target to $255, emphasizing Snowflake’s advancements in AI and machine learning. These developments reflect a broad consensus among analysts about the company’s strong performance and innovation.
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