Snowflake Surpasses Earnings Expectations and Analysts Raise Price Targets
Snowflake shares surged following better-than-expected earnings results. The data analytics software firm reported fiscal second-quarter adjusted earnings of $0.62 per share, exceeding the anticipated $0.45 by analysts. Revenue grew 35% year-over-year to $1.55 billion, surpassing a consensus estimate of $1.5 billion. Morgan Stanley and Bank of America raised their price targets for Snowflake's stock from $300 and $395 respectively to $470 each, indicating nearly 54% upside potential. Analysts highlighted the company’s strong execution in monetizing AI-driven consumption within its core platform as a key factor. Both banks maintain positive ratings—overweight for Morgan Stanley and buy for Bank of America—with expectations of continued growth into the second half of the year. Snowflake also raised product revenue guidance, projecting $1.59 billion for Q3 compared to an estimated $1.5 billion by FactSet. The stock has gained 39% in premarket trading on Thursday and is up 39% year-to-date as of this report.
