Artificial intelligence (AI) data cloud company Snowflake (SNOW) is scheduled to announce its results for the second quarter of Fiscal 2026 after the market closes on Wednesday, August 27. Snowflake stock has risen more than 27% year to date, with the ongoing AI boom driving demand for its products. However, there are some concerns about intense competition from rival Databricks. Meanwhile, Wall Street expects Snowflake to report earnings per share (EPS) of $0.27 for Q2 FY26, reflecting a 50% year-over-year jump.
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Furthermore, analysts expect the company’s Q2 FY26 revenue to grow by about 25% to $1.09 billion. Snowflake has exceeded the Street’s earnings expectations in eight out of the past nine quarters. The company delivered better-than-expected results for the first quarter of Fiscal 2026, with revenue growing 26% year over year.
As reflected in this chart from Main Street Data, as of the end of Q1 FY26, Snowflake had 606 customers with trailing 12-month product revenue greater than $1 million.
Analysts’ Views Ahead of Snowflake’s Q2 Earnings
Heading into the Q2 results, TD Cowen analyst Derrick Wood reiterated a Buy rating on Snowflake stock with a price target of $240. Wood expects the company to deliver another solid beat and raise alongside growth re-acceleration compared to the first quarter. The 5-star analyst highlighted that partner checks were bullish.
The checks indicated core consumption stability, continued traction with data engineering workloads, emerging momentum with Cortex AI, and positive changes related to new enterprise sales. Wood thinks that Snowflake’s unified data platform positioning is helping garner more AI-related wallet share. Overall, checks reflect strong spending conditions for Snowflake, with strength noted in core SQL workloads, emerging tailwinds from AI workloads, and positive changes in go-to-market (GTM) motions.
Additionally, Citi analyst Tyler Radke increased his price target for Snowflake stock to $250 from $245 and maintained a Buy rating. The 4-star analyst expects growth reacceleration in the second half of the year on AI and remaining performance obligation (RPO) strength.
AI Analyst Is Cautious on SNOW Stock Ahead of Q2 Print
Interestingly, TipRanks’ AI stock analyst has assigned a Neutral rating to SNOW stock with a price target of $205, indicating about 4.2% upside potential. TipRanks’ AI analysis highlighted that SNOW’s solid top-line growth and positive earnings call sentiment are major strengths, supported by effective cash flow management. However, technical indicators indicate bearish momentum. Also, the lack of profitability impacts valuation negatively.
Here’s What Options Traders Anticipate Ahead of SNOW’s Q2 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about an 11.5% move in either direction in SNOW stock in reaction to Q2 FY26 results.
Is SNOW a Good Stock to Buy Now?
Overall, Wall Street has a Strong Buy consensus rating on Snowflake stock based on 31 Buys and three Holds. The average SNOW stock price target of $235.18 indicates 19.5% upside potential from current levels.
