Oil prices push higher amid worries over Russian supply disruptions
Investing.com - BTIG has raised its price target on Snowflake Inc. (NYSE:SNOW) to $276.00 from $235.00 while maintaining a Buy rating following the company’s second-quarter results. Currently trading at $200.39, the stock has delivered an impressive 79.6% return over the past year, though InvestingPro analysis suggests the stock is slightly overvalued at current levels.
Snowflake reported product revenue of $1,091 million, representing 31.5% year-over-year growth, which exceeded BTIG’s estimate of $1,039 million and the Street consensus of $1,041 million. The company’s performance surpassed even the upside scenario of $1,068 million that BTIG had previewed on August 25.
According to BTIG, the strong quarterly performance was primarily driven by Snowflake’s core warehouse business, with newer products and workloads contributing to some upside. The company also benefited from consumption spikes related to large customer migrations, while the Crunchy Data acquisition added less than $5 million in revenue during the quarter.
On the financial front, Snowflake’s gross profit beat Street estimates by 6.5%, and operating income was substantially above consensus. The company has increased its fiscal year 2026 product revenue guidance to $4,395 million, representing 27.3% growth, up from its previous guidance of $4,325 million or 24.9% growth.
BTIG views Snowflake as a clear beneficiary of AI as companies work to centralize their data for building applications, noting that new products and features like Snowpark, Dynamic Tables, Iceberg Tables, Cortex, and Gen2 instances are gaining momentum. The firm remains highly confident in its forecasts and believes Snowflake could deliver product revenue growth of approximately 29% year-over-year in fiscal year 2026, versus the company’s guidance of 27%.
In other recent news, Snowflake Inc . reported strong fiscal second-quarter 2026 results, with non-GAAP earnings per share of $0.35, surpassing the consensus estimate of $0.27. The company also achieved total revenue of $1.14 billion, exceeding the expected $1.09 billion, and reported a 32% year-over-year revenue growth, an increase from the previous quarter’s 26% growth. Following these results, several firms have adjusted their price targets for Snowflake. Raymond James raised its price target to $230, citing a "beat and raise" quarter, while RBC Capital increased its target to $275, highlighting Snowflake’s 32% product revenue growth. Citizens JMP also raised its price target to $283, maintaining a Market Outperform rating due to the strong earnings. Additionally, Goldman Sachs adjusted its price target to $260, noting the company’s acceleration in key metrics, including contracted remaining performance obligations growth. These developments reflect positive sentiment among analysts regarding Snowflake’s recent performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.