Key Takeaways
- Q1 FY27 earnings will be released Wednesday, May 27, following market closure.
- Consensus estimates point to EPS of $0.32 (33.3% year-over-year gain) and approximately $1.32 billion in revenue, marking a ~27% jump.
- The stock has climbed 19.3% in the last 30 days but remains down roughly 22% for the year, currently priced at $172.02.
- The options market anticipates a price swing of approximately 13.52% post-announcement.
- Analyst consensus stands at Strong Buy, with a mean price target of $224.32 suggesting roughly 30% potential upside.
As Snowflake prepares to unveil its Wednesday earnings, the stock trades at $172.02 — notably beneath the analyst consensus target of $224.32.
The data cloud infrastructure provider will deliver its Q1 fiscal year 2027 financial results following the May 27 market close. Wall Street forecasts revenue around $1.32 billion, representing approximately 27% growth compared to the prior year period.
This projection exceeds the 25.7% growth rate Snowflake achieved during the comparable quarter last year.
Analysts anticipate earnings per share of $0.32, which would represent a 33.3% increase versus the year-ago period.
In its previous quarterly report, Snowflake exceeded revenue expectations with $1.28 billion, reflecting 30.1% year-over-year expansion. The company also surpassed projections for billings and EBITDA, while onboarding 45 additional enterprise clients with annual spending exceeding $1 million. This brought the total customer count in that category to 733.
Despite solid recent performance, SNOW shares have declined approximately 22% since the beginning of the year. The downturn stems from profitability concerns related to substantial AI infrastructure investments, alongside fears that agentic artificial intelligence could disrupt conventional enterprise software models.
The shares have recovered momentum lately, however — gaining 19.3% during the past 30-day period.
Wall Street Analyst Perspectives
TD Cowen analyst Derrick Wood maintained his Buy recommendation with a $255 target price. He cited encouraging feedback from partner discussions indicating a robust quarter, fueled by fundamental cloud data warehouse operations, competitive customer migrations, and expanding AI integration.
Wood is monitoring developments around Cortex Code (CoCo), the company’s AI coding agent, and anticipates stronger outperformance compared to the previous two reporting periods.
Benchmark analyst Yi Fu Lee elevated his target from $190 to $200 while keeping his Buy stance. Lee believes Snowflake will “highly likely comfortably” surpass consensus estimates for product revenue and operating profitability.
Lee forecasts continued growth momentum from Snowflake Intelligence, Cortex Code, and Observe — three solutions he views as catalyzing AI implementation across more than 9,000 customer accounts.
Options Activity Points to Significant Volatility
The options market is forecasting a stock movement of approximately 13.52% in either direction after the earnings release. This exceeds SNOW’s four-quarter average post-earnings volatility of 11.85%.
The Street’s sentiment remains decidedly optimistic. The consensus rating is Strong Buy, comprising 28 Buy recommendations and two Hold ratings. The mean price objective of $224.32 suggests approximately 30% appreciation potential from today’s valuation.
Comparable companies in the data analytics sector provide an encouraging context for the upcoming report. DigitalOcean delivered 22.4% revenue expansion last quarter while exceeding projections by 3.3%. Commvault achieved 13.3% growth and outperformed estimates by 1.6%.
Market sentiment throughout the sector has been constructive, with competitor stocks rising an average of approximately 10% over the trailing month.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
