Update shared on 27 Nov 2025
Fair value Increased 2.30%Snowflake's analyst price target has risen from $266.56 to $272.69 per share, reflecting analysts' optimism around robust enterprise AI demand and indications of accelerating revenue growth momentum.
Analyst Commentary
Recent analyst reports highlight growing confidence in Snowflake's market positioning and future revenue potential, supported by continued AI adoption and strong enterprise demand. However, some caution remains regarding software sector volatility and execution risks.
Bullish Takeaways- Several bullish analysts have recently raised their price targets for Snowflake, with increases reflecting heightened expectations around the ongoing surge in enterprise AI-driven demand.
- Forecasts indicate the company is positioned for accelerated growth, particularly in the second half of 2025. This outlook is supported by positive industry checks and an expanding customer pipeline.
- Guidance from management is viewed as conservative, suggesting that Snowflake may have room to exceed current revenue targets.
- Recent channel and partner surveys report robust demand, with Snowflake remaining a top pick among analysts who are bullish on AI and data infrastructure trends.
- Some bearish analysts point out ongoing volatility in the broader software sector, and note this could introduce risk to valuation and near-term performance.
- There are concerns of a crowding effect among perceived AI winners, which may lead to heightened competition for growth opportunities.
- Normalizing growth rates and tough year-over-year comparisons as pandemic tailwinds diminish could temper the pace of future upside for Snowflake shares.
What's in the News
- Snowflake launched a new integration with NVIDIA to accelerate machine learning workflows on Snowflake's platform. This integration offers GPU-accelerated algorithms and simplifies the ML model development lifecycle for enterprise datasets. (Key Developments)
- Snowflake introduced a suite of new AI developer tools, including AI-native collaboration workspaces, expanded OSS integrations, and enhanced data quality capabilities. These tools help organizations build, deploy, and manage AI applications securely and efficiently. (Key Developments)
- Snowflake and SAP announced a collaboration to enable seamless interoperability between Snowflake's AI Data Cloud and SAP Business Data Cloud. This collaboration facilitates real-time, zero-copy data sharing and AI-powered innovation for enterprise customers. (Key Developments)
- A new strategic partnership between Cognite and Snowflake is bringing bidirectional, zero-copy data sharing to industrial AI solutions. This partnership unifies domain-specific operational data and enables greater automation and efficiency in industrial settings. (Key Developments)
- Snowflake continues its global expansion with the general availability of its AI Data Cloud on AWS Africa (Cape Town), supporting data residency requirements and empowering South African businesses with advanced analytics capabilities. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $266.56 to $272.69 per share.
- Discount Rate has decreased marginally from 9.02% to 9.01%.
- Revenue Growth expectations edged up from 23.96% to 23.98%.
- Net Profit Margin is projected to improve from 6.19% to 6.99%.
- Future P/E ratio has fallen notably from 260.40x to 235.96x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.