The performance explosion sparked a Wall Street frenzy: Snowflake (SNOW.US) soared 16%, and major banks collectively raised target prices

The Zhitong Finance App learned that after announcing financial reports for the second quarter of the 2027 fiscal year that exceeded expectations, the stock price of the cloud data platform Snowflake (SNOW.US) surged more than 16% on Thursday, triggering Wall Street to collectively raise the target price.

Jefferies analyst Brent Thill said in a report to investors that “Coco has become Snow's killer AI capability, driving product revenue exceeding expectations by more than 5% for the second quarter, accelerating growth for the third consecutive quarter, and achieving record operating profit margins.” “Product revenue growth in the third fiscal quarter reached 37%-38%, and the FY 2027 guidance was raised by 5 percentage points to 36%, all far exceeding market expectations. CoCo added more than 2,000 new accounts quarterly, and after two quarters of its official launch (GA), it has covered more than 60% of the installed base. Management called it the easiest product SNOW has ever sold.”

Snowflake CoCo (also known as Cortex Code) is a data-native AI coding agent designed to simplify and accelerate the data development lifecycle.

Jefferies maintained its “buy” rating and raised its price target from $385 to $430.

Similarly, Evercore ISI maintained its “outperforming the market” rating and raised its price target from $360 to $430.

Evercore analyst Kirk Materne said in Thursday's report, “Management also meaningfully pointed out that the demand for model selection is a key demand driver, and the driving force behind it is cost optimization; although this may seem like SNOW's competitive advantage rather than resistance, because its ability to automatically route the best models is actually driving incremental demand,” “Finally, the operating margin is about 15%, far higher than the guideline of about 12.5%, showing that management has the ability to release operating leverage while achieving a medium to 30% growth rate.”

Meanwhile, BTIG reaffirmed its “buy” rating and raised its price target from $340 to $424.

“Overall, we think it was another excellent quarter,” BTIG analysts Gray Powell and Trevor Rambo said in the report. This time, product revenue was 74 million US dollars higher than the midpoint of the guideline, making it the largest margin in the company's history that exceeded expectations compared to the guideline. Furthermore, SNOW product revenue increased by US$158 million month-on-month, surpassing the record of US$108 million just set in the previous quarter, marking the second consecutive quarter of month-on-month growth of a record high compared to the US dollar. AI is driving the urgency of integrating data into the SNOW platform; Coco and CoWork are gaining wider adoption and monetization, and the consumption of AI users on the core platform has also increased significantly.”

J.P. Morgan confirmed its “overweight” rating and raised its price target sharply from $285 to $426.

“Product revenue guidance for FY2027 was raised to US$6.07 billion, or 36% year over year, which is approximately US$213 million higher than market consensus. This now includes management's confidence that product revenue growth in the third fiscal quarter will accelerate slightly compared to the second fiscal quarter,” J.P. Morgan analyst Samik Chatterjee said in the report. Furthermore, the revised product revenue guidance for the full fiscal year means that after a strong third fiscal quarter, there will be a slight slowdown in product revenue growth in the fourth fiscal quarter. We believe this reflects management's conservative attitude and leaves room for further sharp upward guidance in the subsequent period of this fiscal year.”

Following the release of Snowflake's latest earnings report, several other financial institutions also raised their target prices for the stock. Oppenheimer raised the target price from $400 to $475; Piper Sandler raised it from $320 to $450; Citi raised it from $395 to $490; and Wells Fargo raised the target price slightly from $500 to $525.