Snowflake (SNOW) Stock: Wall Street Cheers as Cloud Data Giant Crushes Q1 Estimates
TLDR:
Snowflake beat Q1 FY26 earnings with $0.26 per share vs $0.21 expected
Revenue rose 25.5% to $1.04 billion, exceeding $1.01 billion forecast
Company raised FY26 product revenue forecast to $4.325 billion
Wall Street analysts raised price targets while maintaining Buy ratings
Stock jumped over 10% in pre-market trading following the results
Snowflake’s Q1 earnings report has investors feeling optimistic. The cloud data warehousing company posted numbers that beat Wall Street expectations, sending its stock price higher.
The company reported adjusted earnings of $0.26 per share for the first quarter of fiscal year 2026. This topped analysts’ estimates of $0.21 per share.
Revenue also impressed, climbing 25.5% to $1.04 billion. This surpassed the expected figure of $1.01 billion.
The strong performance represents continued growth for Snowflake. Last year during the same period, the company posted earnings of $0.14 per share.
This marks the fourth consecutive quarter that Snowflake has beaten consensus estimates for both earnings per share and revenue.
Strong Q1 for $SNOW — revenue reached $1.04B, up 25.8% YoY, with a solid beat. Product revenue rose 26.2% YoY, showing continued momentum. pic.twitter.com/n9icEGPFTh
— Sergey (@SergeyCYW) May 22, 2025
Analysts Raise Price Targets
Wall Street has responded positively to the results. Multiple analysts have increased their price targets for Snowflake stock.
Piper Sandler analyst Brent Bracelin raised his target from $175 to $215. He kept an Overweight rating on the stock.
Bracelin called Snowflake one of his “highest conviction growth ideas” for 2025. He expects the company to maintain around 25% growth with strong cash flow margins.
Wolfe Research’s Alex Zukin was also bullish. He increased his price target from $180 to $230 while maintaining an Outperform rating.
Zukin praised Snowflake’s “impressive execution” in both product revenue and profit margins. He believes the company is proving it can grow steadily while improving efficiency.
Goldman Sachs analyst Kash Rangan joined the chorus of approval. He raised his price target to $230 from $205 and kept a Buy rating.
Rangan sees Snowflake evolving into a complete data system. This would handle everything from gathering data to running AI tasks.
Looking Ahead
Snowflake has raised its outlook for the fiscal year. The company now forecasts product revenue of $4.325 billion for FY26.
This new guidance exceeds its previous estimate of $4.28 billion. The raise suggests management feels confident about future growth.
Analysts are particularly excited about upcoming events. The Snowflake Summit and Analyst Day will take place from June 2-5.
These events could serve as catalysts for the stock. They might generate fresh news and positive momentum.
Year-to-date, Snowflake shares have gained about 18.4%. This outpaces the S&P 500, which has risen just 1% during the same period.
Wall Street’s consensus remains firmly positive. Out of 38 analysts covering the stock, 32 rate it a Buy, while 6 rate it a Hold. There are no Sell ratings.
The average price target sits at $204.40. This implies potential upside of 14.11% from current levels.
Snowflake operates in the Internet – Software industry, which currently ranks in the top 26% of industries tracked by Zacks.
Research shows that the top 50% of Zacks-ranked industries outperform the bottom half by more than 2 to 1.
The latest quarter represented an earnings surprise of 9.09%. The previous quarter was even more impressive, with a 76.47% surprise.
With its latest results, Snowflake continues to cement its position as a leader in cloud data and AI. The stock’s recent surge reflects growing investor confidence in its business model and growth trajectory.
The post Snowflake (SNOW) Stock: Wall Street Cheers as Cloud Data Giant Crushes Q1 Estimates appeared first on CoinCentral.
Filed under: News - @ May 22, 2025 12:28 pm