Key Highlights
- First-quarter fiscal 2027 product revenue reached $1.334 billion, marking a 33.9% year-over-year increase and exceeding projections by 5.3%
- Cortex Code (CoCo), Snowflake’s AI-powered product, expanded to more than 7,100 customer accounts following its February 2026 launch
- HSBC elevated its rating on SNOW to Buy with a new price target of $289, up from $176
- Several analysts increased their price objectives, led by Monness, Crespi, Hardt at $320
- The company strengthened collaborations with AWS and OpenAI while announcing an acquisition of AI company Natoma
Snowflake (SNOW) stock climbed approximately 3.6% to nearly $239.20 following the release of fiscal first-quarter 2027 earnings that exceeded analyst projections for both top and bottom lines. The shares had already experienced a 39% rally over the previous week before the earnings announcement.
The company reported product revenue of $1.334 billion for the quarter, representing a 33.9% year-over-year expansion. This figure surpassed the FactSet consensus estimate by 5.3%. Operating income outperformed expectations by 35.2%.
The cloud data platform provider also elevated its full-year outlook and increased operating margin guidance by 100 basis points. The company maintained its FY2027 product gross margin projection at 75%.
A significant portion of the strong performance stemmed from robust appetite for Snowflake’s artificial intelligence offerings, particularly Cortex Code, known internally as CoCo. Since becoming broadly available in February 2026, this tool has expanded to over 7,100 customer accounts.
Company executives identified CoCo as the primary catalyst for raising full-year guidance. This represents rapid adoption for a product that has been widely available for less than half a year.
Usage of the core data platform also accelerated. Enterprises are migrating workloads to Snowflake at an increasing pace to enable governed artificial intelligence applications, simultaneously boosting both direct AI revenue and fundamental platform consumption.
Wall Street Analysts Raise Targets
HSBC delivered the most notable rating change, elevating SNOW from Hold to Buy while increasing its price objective from $176 to $289. Analyst Stephen Bersey characterized CoCo as the strongest evidence to date of Snowflake’s capacity to generate revenue from AI capabilities.
Monness, Crespi, Hardt established an even more ambitious target of $320. Benchmark increased its objective to $270, pointing to unprecedented sequential dollar expansion. Cantor Fitzgerald set a target of $282. Truist Securities positioned its price goal at $275, while Freedom Broker assigned a $300 target.
This represents a widespread wave of upward revisions within a compressed timeframe. The analyst community appears to be recalibrating its outlook on Snowflake’s expansion potential.
Strategic Deals and Collaboration
The company unveiled enhanced partnerships with AWS and OpenAI, solidifying its position within the enterprise artificial intelligence infrastructure. Snowflake also disclosed its intention to acquire Natoma, an AI-focused startup, although financial details were not revealed.
These strategic initiatives broaden Snowflake’s presence throughout the AI landscape — spanning both cloud infrastructure and practical AI application development.
Executives acknowledged certain risks during the earnings call. Escalating AI expenses and implementation challenges associated with scaling new offerings were highlighted as potential concerns.
Snowflake continues to operate at a loss on a trailing twelve-month basis. Nevertheless, analysts currently project the company will achieve profitability during the current fiscal year, with earnings per share estimates of $2.83 for FY2027.
InvestingPro indicated the stock may be trading above fair value at present levels, despite the impressive earnings performance and upgraded guidance.
Year-to-date, the stock has advanced 9.04%, with the company’s market capitalization standing at roughly $60.75 billion based on recent data.
