Update shared on16 Sep 2025
Fair value Increased 1.08%Following robust Q2 results marked by accelerating product revenue growth, increased enterprise adoption, and strong AI-driven momentum across its platform, analysts have raised Snowflake’s consensus price target from $260.62 to $263.43.
Analyst Commentary
- Bullish analysts raised price targets on Snowflake following Q2 results, citing a powerful acceleration in product revenue growth (31.5-32% y/y), significant outperformance versus guidance, and robust momentum across all product lines, including analytics, data engineering, AI/ML, and collaboration.
- Multiple firms highlighted strong core consumption trends, increasing enterprise adoption, and expanded market opportunity, with large customer migrations and broader platform uptake serving as key growth catalysts.
- AI product traction and rapid innovation—evidenced by hundreds of new features and a clear AI roadmap—are driving both existing customer engagement and new market capture, with expectations for continued AI-driven acceleration into 2026-2027.
- Analysts emphasized improved sales efficiency, increased sales and marketing headcount, and go-to-market execution as contributing factors to Snowflake's strengthened outlook and raised guidance for FY26.
- Secular trends such as ongoing cloud migrations, Snowflake’s strategic importance to large enterprises, and healthy pipeline/remaining performance obligations were cited as durable tailwinds supporting higher future growth estimates.
What's in the News
- Snowflake raised its FY26 product revenue guidance to $4.395 billion, representing 27% YoY growth, and guided Q3 FY26 product revenue to $1,125–$1,130 million (25%–26% YoY growth).
- Brian Robins, formerly CFO at GitLab, was appointed Chief Financial Officer effective September 22, 2025, with outgoing CFO Mike Scarpelli retiring and transitioning to an advisory role.
- The company completed the repurchase of 21,991,000 shares (6.6%) for $3,014.63 million as part of its buyback program; no shares were repurchased from May–July 2025.
- A strategic collaboration with Siemens enables manufacturers to connect operational and IT data using Snowflake’s AI Data Cloud, driving enhanced industrial efficiency and AI-driven insights.
- Snowflake expanded its AI Data Cloud offering to AWS’s Cape Town region, supporting South African customers with secure, locally compliant, AI-powered data solutions and enabling participation in skill development initiatives like One Million Minds.
Valuation Changes
Summary of Valuation Changes for Snowflake
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $260.62 to $263.43.
- The Net Profit Margin for Snowflake has risen from 6.37% to 7.00%.
- The Future P/E for Snowflake has fallen slightly from 224.75x to 216.25x.
Disclaimer
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