Cantor Fitzgerald Predicts a Narrower Earnings Beat for Snowflake in Q2
Snowflake (NYSE: SNOW) is set to report its fiscal second-quarter earnings on September 2, with Cantor Fitzgerald analyst Thomas Blakey expecting the company to beat Wall Street estimates. However, this expected beat of around 3% above guidance's mid-point would be narrower than last quarter’s stronger performance of 5.5%. Despite a bullish price target increase from $282 to $405 and an Overweight rating maintained by Cantor Fitzgerald, the firm notes that investors may not find a smaller-than-expected beat sufficient for excitement. Snowflake's growth is being driven in part by its AI capabilities, with over 13,600 accounts using Snowflake’s AI tools. The company also reported strong product revenue and net revenue retention figures from Q1 of fiscal 2027. Cantor Fitzgerald highlights that while core usage remains robust, the challenge lies in whether incremental AI consumption can offset cost optimization efforts by customers consolidating spending. The firm suggests that Snowflake’s issue is not execution but rather meeting investor expectations with a weaker-than-previous beat.
Tickers: $SNOW
Topics: AI adoption Cantor Fitzgerald Earnings expectations NRR growth Snowflake