New York, May 20, 2026, 04:12 EDT
Snowflake gained on Tuesday, moving 3.2% higher to $169.55 in recent trade, after BofA Securities bumped up its price target on the data-cloud name. The firm expects solid fiscal first-quarter numbers next week, giving some lift to a software stock that’s been lagging this year, market data show.
Snowflake is set to report results after the U.S. market closes on May 27, covering the quarter to April 30. The release will show if corporate budgets for data and AI tools are still turning into product revenue, which is the main sales metric watched for Snowflake’s platform.
Snowflake set a tough target for investors. On its last earnings, the company guided to first-quarter fiscal 2027 product revenue between $1.262 billion and $1.267 billion, a 27% gain. Full-year product revenue is estimated at $5.66 billion, also up 27%.
BofA bumped its price target on Snowflake up to $205 from $195 and stuck with its Buy call, according to Investing.com. Analyst Koji Ikeda said demand at Snowflake still looks solid. Ikeda said this quarter shouldn’t change BofA’s view that the company is taking share in the AI business-intelligence space.
BofA expects the “robust demand” for Snowflake to keep going through the year, Sherwood reported. The note called Snowflake a “share gainer” in AI business intelligence, which the firm sees as a market where companies tap data and software for quicker decisions. Sherwood News
Mizuho Securities also weighed in. The firm said channel checks for Snowflake, Palo Alto Networks and CrowdStrike looked positive before earnings, based on calls with customers, partners and resellers.
Snowflake is still seeing demand for data modernization and growing interest in its AI offerings, StockStory said on TradingView. Newer tools like Snowflake Intelligence, which is used to query enterprise data, and Cortex Code, which targets developers working on code, are part of that trend.
Software shares have had a tough run lately. StockStory called out concerns about a possible “SaaS Rout of 2026” putting pressure on the group, with some investors worried artificial intelligence could disrupt the software-as-a-service business model—subscription-based software companies sell online. TradingView
Snowflake gave bulls some fuel after its last quarter. CEO Sridhar Ramaswamy told Reuters the company landed its biggest deal so far, saying it’s “over $400 million.” The report also said Snowflake’s fiscal 2027 product revenue forecast beat the average LSEG analyst estimate. Snowflake, which competes with Databricks, has signed multiyear $200 million agreements with OpenAI and Anthropic to use their models in its platform. Reuters
The setup still looks messy. BofA flagged some short-term demand headwinds out of the Middle East, though it said revenue there was small. At the same time, Investing.com said UBS and Evercore ISI cut their price targets, pointing to AI competition and a slowdown in Snowflake’s main cloud data-warehousing business.
Next week’s earnings will be under the microscope. Snowflake needs to prove customers keep storing and analyzing more data on its platform. The company also has to show its AI efforts are driving real growth, not just adding hype to the software sector.
