Key Takeaways
- Snowflake’s Q1 FY27 financial results arrive May 27 following market hours
- Options market pricing indicates potential ~13.52% price movement after earnings
- Analyst consensus calls for $0.32 EPS (+33.3% YoY) and approximately $1.32B in revenue (+27%)
- TD Cowen maintains Buy rating with $255 target; Benchmark also bullish at $200 target
- Overall Street sentiment: Strong Buy with 28 Buy ratings, 2 Hold ratings, and $224.32 average target
Snowflake delivers its fiscal 2027 first-quarter earnings this Wednesday, May 27, following the closing bell. With shares hovering near $171—down approximately 22% since the year began—investor attention is intensely focused on this quarterly report.
The options market is factoring in approximately 13.52% volatility in either direction following the announcement. This exceeds the company’s typical post-earnings movement of 11.85% across the previous four reporting periods.
Consensus estimates point to earnings per share of $0.32, representing a 33.3% increase compared to the prior year. Revenue projections hover around $1.32 billion, marking roughly 27% year-over-year expansion.
The critical question for investors? How management assesses demand stemming from enterprise artificial intelligence workloads.
TD Cowen’s Derrick Wood maintained his Buy stance with a $255 valuation ahead of results. His partner channel conversations indicate solid quarterly performance, with strength in traditional cloud data warehouse consumption, customer migrations from competitors, and expanding AI implementation.
Wood anticipates more pronounced upside than the company’s last two quarters and seeks additional clarity on consumption patterns from Cortex Code—Snowflake’s AI coding agent, nicknamed CoCo.
AI Workload Trends Take Center Stage for Analysts
Benchmark’s Yi Fu Lee elevated his valuation to $200 from $190 while maintaining his Buy recommendation. Lee believes Snowflake stands “highly likely to comfortably” surpass Wall Street projections for product revenue, operating income, and profit margins.
His optimistic outlook draws from encouraging data points across cloud infrastructure, data management, and AI workload indicators. Lee projects that Q4 FY26 momentum has continued into the current fiscal year’s opening quarter.
Three specific offerings command his attention: Snowflake Intelligence (for business analytics), Cortex Code, and Observe (the firm’s observability solution). Lee expects these products to accelerate AI adoption—which has already reached over 9,000 customer accounts.
KeyBanc similarly holds an Overweight position with a $200 target, though the firm noted mixed survey feedback regarding growth projections and possible large language model implications.
The company also recently finalized an agreement with the U.S. General Services Administration, enabling federal agencies to access its AI Data Cloud infrastructure—reflecting broader government IT modernization initiatives.
A Contrarian Perspective Emerges
Not all observers share the optimistic view. TipRanks’ AI Analyst assigns a Neutral rating to SNOW with a $177 target, suggesting merely 3% appreciation potential from present prices.
The hesitation doesn’t stem from growth concerns—it centers on financial health. The AI Analyst highlighted persistent GAAP losses, absence of positive P/E metrics, and leverage concerns, despite recognizing healthy cash flow generation and encouraging forward guidance.
Technical weakness compounds the picture, with shares suffering notable year-to-date declines.
Nevertheless, the prevailing Wall Street sentiment remains decidedly optimistic. The aggregate rating stands at Strong Buy, comprising 28 Buy recommendations against only 2 Hold ratings. The mean price target of $224.32 suggests approximately 30% appreciation potential from current price levels.
Snowflake’s earnings announcement arrives after trading concludes on Wednesday, May 27.
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