Update shared on29 Aug 2025
Fair value Increased 11%Snowflake’s consensus price target has increased to $259.43 as analysts cite accelerating product revenue growth, expanding AI-driven innovation, and stronger enterprise adoption, reflecting heightened confidence in its long-term growth outlook.
Analyst Commentary
- Broad-based acceleration in product revenue growth exceeding guidance, with Q2 product revenue up 32% year-over-year, driven by strong execution across all core pillars: analytics, data engineering, AI applications, and collaboration.
- Increasing evidence of substantial long-term market opportunity and durable growth runway, highlighted by strong adoption in core analytics/data warehouse, customer migrations, and expanding enterprise penetration.
- Momentum in AI and new product innovation, with AI-related offerings gaining traction and robust product development (e.g., 250+ features launched in six months), giving rise to higher confidence in future growth trajectories.
- Strengthening sales and marketing execution, faster product delivery, and consistently increasing sales efficiency, evidenced by a surge in S&M headcount and broader platform adoption among large customers.
- Secular tailwinds from cloud migrations, reinforced by recurring "beat and raise" quarters, positive customer surveys, and platform stickiness positioning Snowflake as a strategic, top pick among enterprise software and data infrastructure providers.
What's in the News
- Snowflake raised FY26 product revenue guidance to $4.395 billion (27% YoY growth) and guided Q3 FY26 product revenue to $1.125–$1.130 billion (25–26% YoY growth).
- Announced major AI and data platform innovations, including Snowflake Openflow (multi-modal data ingestion), Cortex AISQL (generative AI-powered SQL), new agentic AI products, and Gen2 compute enhancements for improved performance and cost efficiency.
- Enhanced ecosystem via deepened strategic alliances and integrations (Domo, Sigma, MathCo, Monte Carlo, Intapp, Tredence, Quantiphi, Kasmo, Incorta, Unravel Data, Diskover, GrowthLoop, Ataccama, WNS, NiCE, Acxiom/IPG) and expanded marketplace offerings with third-party data/apps (Parameta, Gannett, Cint, CB Insights, Archive360, Doubleword, Striim, Monte Carlo).
- Eliminated Class B shares, unifying equity structure into a single class of common stock.
- Partnerships and client wins highlight growing enterprise adoption across data modernization, AI-driven analytics, marketing, compliance, and unstructured data use cases.
Valuation Changes
Summary of Valuation Changes for Snowflake
- The Consensus Analyst Price Target has significantly risen from $233.90 to $259.43.
- The Future P/E for Snowflake has risen from 194.53x to 205.02x.
- The Discount Rate for Snowflake remained effectively unchanged, moving only marginally from 8.84% to 8.82%.
Disclaimer
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