Menlo Park, California, May 21, 2026, 02:02 PDT
- BofA raised its price target on Snowflake to $205, sticking with its Buy rating before the company reports fiscal Q1 results.
- Snowflake will report on May 27, bringing its AI demand theme back to investors.
- It’s not just one-way traffic. RBC lowered its target this week, and there’s still live risk from rivals in data and AI.
Snowflake shares fell Thursday morning after a strong move ahead of earnings. Investors had Bank of America’s upbeat call to consider, but Wall Street sentiment stayed mixed on the cloud data name. The stock last traded at $166.97, down roughly 1.5%.
Snowflake’s fiscal first-quarter earnings are due May 27 after the U.S. close, a moment that will show if demand for the company’s data platform and AI offerings is steady after a rocky time for software shares. The quarter, which finished April 30, could be key for Snowflake.
BofA Securities bumped its price target on Snowflake to $205, up from $195, while reiterating Buy. Analyst Koji Ikeda kept forecasts steady, but BofA now uses a higher valuation multiple—10.3 times projected 2027 revenue instead of 9.8—citing “higher execution confidence.” A valuation multiple is how much investors are paying versus expected sales or earnings. investing.com
Ikeda said in a note that “robust demand” for Snowflake is likely to last through 2026 and “should continue unabated,” Barchart reported. He also said the company is picking up market share in AI business intelligence, where firms deploy software to search, analyze and act on business data. Barchart.com
Snowflake is projecting strong growth. The company in February guided for fiscal Q1 product revenue of $1.262 billion to $1.267 billion, up 27% year over year. Guidance for full-year fiscal 2027 product revenue came in at $5.66 billion, also a 27% gain.
Snowflake wrapped up fiscal 2026 with improving numbers. Revenue for the fourth quarter was up 30% at $1.28 billion. Product revenue matched that, also rising 30% to $1.23 billion. Remaining performance obligations, which is contracted revenue not recognized yet, jumped 42% to $9.77 billion. CEO Sridhar Ramaswamy said Snowflake now has a “foundation that makes AI safe and scalable.” Snowflake
Investors want to see if all that spend leads to repeat use, not just launches. Snowflake said over 9,100 accounts tried Snowflake AI features in the last weeks of the fourth quarter. Snowflake Intelligence drew close to 2,500 accounts across three months.
Some analysts are remaining positive. Citizens analyst Patrick Walravens stuck with his Outperform rating and $325 price target, citing Snowflake’s range of tools in data engineering, analytics, AI, and apps. He noted more than 430 new features shipped for fiscal 2026. According to TipRanks, Walravens did mention Databricks as a competitor, but said the market was big enough for both.
Still, it’s a messy setup. RBC Capital lowered its price target on Snowflake to $220 from $245 but stuck with an Outperform, Bitget reported. BofA flagged demand issues in the Middle East, though the bank said that market is only about 1% of Snowflake’s sales.
Snowflake has flagged risks tied to the AI market too. In a March filing, it pointed to customer budget cuts, shifting prices and features, cybersecurity issues, and tougher competition as AI leads to “significant disruption.” SEC
Next week’s report now carries extra weight. A solid quarter and steady guidance can back BofA’s call that Snowflake is taking share. But signs that customers are using less, pushing deals out, or picking competitors would put pressure on the stock’s rally.
