Quick Summary
- Snowflake’s Q1 FY27 earnings arrive May 27 following market close
- Options market anticipates approximately 13.52% price swing after results
- Analyst consensus calls for $0.32 EPS (up 33.3% YoY) and approximately $1.32B revenue (up 27%)
- TD Cowen maintains Buy with $255 target; Benchmark stays bullish with $200 target
- Consensus rating: Strong Buy with 28 Buy ratings, 2 Hold ratings, and $224.32 average target
Snowflake delivers its Q1 FY27 financial results this Wednesday, May 27, following the closing bell. With shares hovering near $171 and down approximately 22% since January, market participants are closely monitoring this release.
The options market indicates an expected price movement of roughly 13.52% in either direction. This surpasses the company’s four-quarter average post-earnings swing of 11.85%.
Analyst projections point to earnings per share of $0.32, representing a 33.3% increase from the prior year. Revenue estimates cluster around $1.32 billion, marking approximately 27% growth.
The critical question for investors? Management’s perspective on enterprise AI workload demand trends.
TD Cowen’s Derrick Wood maintained his Buy recommendation with a $255 target ahead of the announcement. His optimism stems from partner channel feedback indicating solid quarterly performance, driven by core cloud data warehouse consumption strength, successful competitive migrations, and accelerating AI platform adoption.
Wood anticipates more substantial upside surprises compared to the previous two reporting periods and seeks additional clarity on consumption patterns for Cortex Code — the company’s AI coding agent, commonly referred to as CoCo.
AI Workload Trends Capture Analyst Attention
Benchmark’s Yi Fu Lee elevated his target from $190 to $200 while reaffirming his Buy stance. Lee believes Snowflake will “highly likely” exceed consensus forecasts for product revenue, operating income, and profit margins.
His confidence draws from favorable industry checks across cloud infrastructure, data management, and AI workload indicators. Lee projects that Q4 FY26’s positive momentum has extended into the initial quarter of FY27.
Three specific offerings command his focus: Snowflake Intelligence (for business analytics), Cortex Code, and Observe (the observability platform). Lee expects these products will accelerate AI platform penetration — currently exceeding 9,000 customer accounts.
KeyBanc maintains its Overweight position with a $200 target, though the firm noted survey data showing varied growth outlook opinions and possible large language model disruption effects.
Recently, Snowflake secured a significant contract with the U.S. General Services Administration, providing federal agencies with access to its AI Data Cloud infrastructure — supporting wider government IT transformation initiatives.
A Contrarian Perspective Emerges
Not all observers share the enthusiasm. TipRanks’ AI Analyst assigns a Neutral stance on SNOW with a $177 target, suggesting merely 3% appreciation potential from present levels.
The hesitation centers on financial statement concerns rather than growth doubts. The AI Analyst highlighted persistent GAAP losses, absent positive P/E metrics, and leverage considerations, despite recognizing healthy cash flow generation and encouraging forward guidance.
Technical chart weakness compounds the cautious view, with shares declining substantially year-to-date.
Nevertheless, Wall Street’s collective sentiment remains decidedly optimistic. The consensus stands at Strong Buy, comprising 28 Buy recommendations and only 2 Hold ratings. The mean price target of $224.32 suggests roughly 30% upside potential from current price levels.
Snowflake releases quarterly results following the closing bell on Wednesday, May 27.
