Key Highlights
- First-quarter fiscal 2027 product revenue reached $1.334 billion, marking a 33.9% increase year-over-year and exceeding analyst projections by 5.3%
- Cortex Code (CoCo), Snowflake’s AI solution, expanded to more than 7,100 customer accounts following its February 2026 general release
- HSBC elevated SNOW to Buy status while increasing its price target from $176 to $289
- Several analysts boosted their price targets, with Monness, Crespi, Hardt establishing the top target at $320
- The company strengthened ties with AWS and OpenAI while revealing its intention to acquire AI company Natoma
Shares of Snowflake (SNOW) climbed approximately 3.6% to roughly $239.20 following the release of fiscal first-quarter 2027 earnings that exceeded analyst forecasts for both revenue and earnings. The stock had already experienced a remarkable 39% surge during the week preceding the announcement.
Product revenue for the quarter totaled $1.334 billion, representing a 33.9% year-over-year increase. This figure surpassed FactSet consensus estimates by 5.3%. The company’s operating income came in 35.2% higher than projections.
The cloud data platform provider also elevated its full-year outlook and increased operating margin guidance by 100 basis points. The company maintained its FY2027 product gross margin guidance at 75%.
A significant portion of the impressive performance stemmed from robust customer demand for Snowflake’s artificial intelligence offerings, particularly Cortex Code, known internally as CoCo. Since becoming generally available in February 2026, the product has expanded to serve over 7,100 customer accounts.
Executives identified CoCo as the primary catalyst behind the upgraded fiscal 2027 guidance. This represents remarkable growth velocity for a product that has been widely available for less than half a year.
The company’s core data platform also experienced accelerated consumption patterns. Enterprises are migrating workloads to Snowflake at an increased pace to enable governed AI applications, which simultaneously boosts both direct AI revenue streams and fundamental platform utilization.
Wave of Analyst Upgrades
HSBC delivered the most significant rating change, elevating SNOW from Hold to Buy while raising its price target from $176 to $289. Analyst Stephen Bersey characterized CoCo as the most compelling evidence of Snowflake’s capability to generate revenue from AI technologies.
Monness, Crespi, Hardt established an even more optimistic target of $320. Benchmark increased its target to $270, pointing to unprecedented sequential dollar growth. Cantor Fitzgerald set a target of $282. Truist Securities established $275, while Freedom Broker moved to $300.
This represents a sweeping wave of positive revisions within a compressed timeframe. Wall Street appears to be fundamentally reassessing Snowflake’s growth potential.
Strategic Partnerships and M&A Activity
The company also revealed expanded collaborations with AWS and OpenAI, strengthening its foothold in the enterprise artificial intelligence infrastructure landscape. Separately, Snowflake confirmed its plans to acquire Natoma, an AI-focused startup, though financial details remain undisclosed.
These strategic initiatives broaden Snowflake’s presence throughout the AI ecosystem — spanning both cloud infrastructure and practical AI application development.
During the earnings call, management acknowledged certain risk factors. Escalating AI-related costs and execution hurdles associated with scaling newly launched products were highlighted as concerns warranting attention.
Snowflake continues to operate at a loss on a trailing twelve-month basis. Nevertheless, analysts currently project the company will achieve profitability during the current fiscal year, with earnings per share estimates of $2.83 for FY2027.
InvestingPro noted the stock may be trading above fair value at present levels, despite the impressive earnings performance and elevated guidance.
Year-to-date, the stock has gained 9.04%, with the company’s market capitalization standing at approximately $60.75 billion according to the most recent data.
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