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Snowflake just gave the bulls a fresh excuse to dance
Snowflake came out of the gate with a Q1 fiscal 2027 beat that was pretty hard to ignore: revenue hit $1.39 billion versus expectations of $1.32 billion, and adjusted EPS landed at 39 cents instead of the 32-cent consensus. Translation? The AI data cloud isn’t just showing up — it’s showing off.
The company also pointed to second-quarter product revenue of $1.415 billion to $1.42 billion, which implies roughly 30% growth year over year. Not exactly the kind of forecast that whispers, “please ignore me.” Management is also calling for an adjusted operating margin of 12.5% in Q2 and 13.5% for the full year, which tells you the growth story is getting a little more profitable too.
Analysts heard the music and started raising their hands
Once the numbers hit the tape, Wall Street did what Wall Street does: it adjusted the math and bumped the targets.
- BTIG’s Gray Powell kept a Buy and lifted the target from $235 to $280.
- Goldman Sachs’ Kash Rangan stayed bullish, keeping a Buy and raising the target from $216 to $278.
- Morgan Stanley’s Sanjit Singh kept an Overweight rating and nudged the target from $245 to $300.
That’s not just analysts being polite after a nice earnings call. It’s a sign they think the AI story at Snowflake is getting more real, not less.
The AWS deal is the cherry on top
Snowflake also announced a new multi-year strategic collaboration with Amazon Web Services to speed up enterprise agentic AI adoption. In plain English: Snowflake wants to be more than the place companies store data — it wants to be the control room where AI actually gets to work.
Big picture: if Snowflake can keep turning “AI tailwind” into actual revenue, margins, and customer adoption, the stock may keep behaving like it just found the good Wi-Fi at the party.