SNOW
Valuation came in for a haircut
Evercore ISI took a fresh pass at Snowflake and decided the stock's old price tag was getting a little too bougie. The firm cut its target to $200 from $225, but left the rating at Outperform, which is analyst-speak for: “we still like the company, we just think the market got a little ahead of itself.”
That matters because Snowflake has already been bruised, with the shares down about 44% over the past six months and trading around $134. So even after the target cut, Evercore is still looking for meaningful upside — just from a more realistic launchpad.
The AI story is still doing work
Evercore pointed to Snowflake's core cloud data warehousing business growing 24.2% in fiscal 2026, only a slight slowdown from 25.6% in fiscal 2025. It also flagged the company's data engineering and AI offerings, which rose to 8.2% of revenue from 4.6% the year before. In other words: the AI frosting is getting thicker, and investors are still paying attention.
The firm thinks Snowflake could get to roughly 30% product revenue growth in fiscal 2027, above company guidance of 27%. But the valuation reset shows the market isn't handing out infinite points for “AI” anymore — it wants the receipts.
CEO? No, CRO.
The article also notes Snowflake's leadership shuffle, with company veteran Jonathan Beaulier set to become Chief Revenue Officer on March 31, 2026, replacing Mike Gannon. That kind of move can matter more than it sounds, especially for a company trying to keep its growth engine humming while the software multiples party has clearly ended early.
Big picture: Snowflake still has believers, but the easy-money valuation chapter looks over. Now it's all about execution, growth durability, and whether AI can keep adding fuel instead of just headlines.