Menlo Park, California, May 21, 2026, 02:02 PDT
- BofA lifted its Snowflake target to $205 and kept a Buy rating ahead of fiscal first-quarter results.
- Snowflake reports on May 27, putting its AI demand story back in front of investors.
- The call is not one-way: RBC cut its target this week, and competition in data and AI remains a live risk.
Snowflake shares slipped in early trading on Thursday after a sharp pre-earnings run, leaving investors to weigh Bank of America’s more confident call against a still mixed Wall Street view on the cloud data company. The stock was quoted at $166.97, down about 1.5% from the previous close.
The move matters now because Snowflake reports fiscal first-quarter results on May 27, after the U.S. market close. The quarter, which ended April 30, will test whether demand for its data platform and newer artificial-intelligence tools is holding up after a volatile stretch for software stocks.
BofA Securities raised its price target on Snowflake to $205 from $195 and kept a Buy rating. Analyst Koji Ikeda left forecasts unchanged but lifted BofA’s valuation multiple to 10.3 times expected 2027 revenue from 9.8 times, citing “higher execution confidence.” A valuation multiple is the market price investors are willing to pay relative to expected sales or earnings. investing.com
Ikeda wrote that “robust demand” Snowflake was seeing into 2026 “should continue unabated,” according to Barchart. He also argued the company is gaining share in AI business intelligence, a field where companies use software to search, analyze and act on corporate data. Barchart.com
Snowflake’s own guidance has set a high bar. In February, the company forecast fiscal first-quarter product revenue, or sales from use of its core platform, of $1.262 billion to $1.267 billion, up 27% from a year earlier. It also forecast full-year fiscal 2027 product revenue of $5.66 billion, also up 27%.
The company ended fiscal 2026 with some momentum. Fourth-quarter revenue rose 30% to $1.28 billion, product revenue rose 30% to $1.23 billion, and remaining performance obligations — contracted revenue not yet recognized — climbed 42% to $9.77 billion. Chief Executive Sridhar Ramaswamy said Snowflake had built a “foundation that makes AI safe and scalable.” Snowflake
Investors are looking at whether that spending converts into durable use, not just product launches. Snowflake said more than 9,100 accounts were using Snowflake AI features in the final weeks of the fourth quarter, and that Snowflake Intelligence had reached almost 2,500 accounts in three months.
Other analysts have also stayed constructive. Citizens analyst Patrick Walravens kept an Outperform rating and a $325 target, pointing to Snowflake’s platform across data engineering, analytics, AI and apps, as well as more than 430 new capabilities shipped in fiscal 2026. TipRanks said Walravens also flagged competition from Databricks, but viewed the market as large enough for both companies.
But the setup is not clean. RBC Capital cut its target on Snowflake to $220 from $245 while keeping an Outperform rating, according to Bitget, and BofA itself noted some concern about weaker demand in the Middle East, though it estimated the region accounts for about 1% of Snowflake’s revenue at most.
Snowflake has also warned investors about the other side of the AI trade. In a March filing, the company cited risks from customer budget rationalization, changing pricing and product features, cybersecurity threats, and its ability to compete in a market where AI is driving “significant disruption.” SEC
That leaves next week’s report doing more work than usual. A clean quarter and firm guidance could support BofA’s view that Snowflake is still gaining share. Any sign that customers are slowing consumption, delaying contracts or shifting budgets to rivals would make the recent rally harder to defend.
