Snowflake Beats Q4 Estimates, Lifts Full-Year Outlook: Analysts See AI Boosting Growth

Shares of Snowflake Inc SNOW were climbing in early trading on Thursday, after the company reported upbeat fourth-quarter results.

The results came in amid an exciting earnings season. Here are some key analyst takeaways.

JPMorgan On Snowflake

Analyst Mark Murphy reiterated an Overweight rating, while raising the price target from $185 to $210.

Snowflake's fourth-quarter beat was lower in magnitude and less broad-based across bookings and consumption than the previous quarter's upside, Murphy said in the note. He added, however, that the results were strong, with total revenue up 27% year-on-year to $987 million, driven by Product revenue of $943 million, up 28%.

Management's fiscal 2026 guidance calls for a growth rate that is around 2 percentage points higher than the guidance provided last year, the analyst stated.

"We had also highlighted Snowflake's accelerated pace of product development and potential tailwinds emerging to its 2H26 growth glidepath around AI/ML, toward which we see ongoing progress today, as the company increasingly demonstrates that the data layer is gaining importance as the control point for AI and forecasts a step-up in 2H growth rates," he further wrote.

Check out other analyst stock ratings.

Needham On Snowflake

Analyst Mike Cikos maintained a Buy rating, while raising the price target from $200 to $215.

Snowflake guided to Product revenue growth of 21%-22% to a range of $955 million to $960 million for the first quarter and of $4.280 billion for the full year, Cikos said. The full-year guidance implies 24% growth and is significantly above consensus of $4.234 billion, he added.

Data Engineering, Snowpark, and AI/ML are expected to drive the acceleration in year-on-year growth during the back half of the fiscal year, the analyst stated. "Several large customers have outpaced their Commitments and are On-Demand – i.e. these contracts are not currently in RPO and would represent a tailwind to Bookings," he further wrote.

Rosenblatt Securities On Snowflake

Analyst Blair Abernethy reaffirmed a Buy rating and price target of $205.

Snowflake's revenue beat and operational efficiency improvements drove margins to around 9% in the fourth quarter, significantly above estimate of 4%, Abernethy said. Snowflake witnessed strong adoption of the new data engineering and AI features, he added.

While the company's first-quarter guidance missed expectations, better consumption levels and new product launches are behind management's full-year guidance coming in higher than consensus, the analyst stated. "Importantly, Iceberg tables has turned out to not be a headwind, as the losses from data outflow have been more than offset by increased workloads, and storage remains 11% of total product revenue," he further wrote.

SNOW Price Action: Shares of Snowflake had risen by 10% to $182.75 at the time of publication on Thursday.

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