Snowflake (SNOW) is scheduled to report its second-quarter fiscal 2026 earnings after the market closes on August 27. Ahead of the results, analysts remain highly optimistic about Snowflake’s potential Q2 beat and its strong artificial intelligence (AI)-driven growth prospects, despite rising competition from rivals such as Databricks. Notably, the cloud-based data storage company has surpassed Wall Street’s expectations in seven of the past eight consecutive quarters.
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On TipRanks, SNOW stock commands a Strong Buy consensus rating based on 31 Buys and three Hold ratings. The average Snowflake price target of $235.18 implies 20.8% upside potential from current levels. Meanwhile, SNOW stock has already surged 26% so far this year.
Here’s What Analysts Are Saying About Snowflake
The Street expects Snowflake to report adjusted earnings of $0.27 per share on revenue of $1.09 billion. These consensus estimates indicate a 50% year-over-year jump in earnings and a 25% surge in revenue compared to Q2FY25.
In anticipation of the results, Citi analyst Tyler Radke raised his price target on SNOW stock from $245 to $250, while keeping a Buy rating. The revised price target implies 28.4% upside potential over the next twelve months. Radke expects Snowflake’s revenue growth rate to accelerate in the second half of the year, driven primarily by AI adoption and strong Remaining Performance Obligation (RPO). RPOs represent the backlog of contracted revenue that the company expects to recognize as revenue in the future.
Radke highlighted Snowflake’s AI platform, Cortex, as a main reason for his optimism. At the company’s recent summit, he was encouraged by the robust adoption of its AI tools despite a tough macro environment. Moreover, Radke noted that Snowflake’s partnership with OpenAI has strengthened its business pipeline, fueling momentum at a faster pace.
In addition to Radke, DA Davidson analyst Gil Luria reiterated his Buy rating and $250 price target on SNOW stock ahead of the Q2 print. Luria ranks Snowflake among his “top picks in infrastructure software,” citing durable momentum in the company’s core data warehouse business. Plus, he expects solid performance in its Snowpark, data engineering, and AI/ML (machine learning) products.
Is SNOW a Good Stock to Buy Right Now?
Overall, analysts remain bullish about Snowflake’s long-term prospects due to its strategic AI push with its Cortex and Snowpark products, driving strong customer adoption. The company also benefits from a large customer base, including enterprise clients like Microsoft (MSFT), Walmart (WMT), and Amazon Web Services (AMZN), as well as a growing government sector market.
