Quick Summary
- Q4 fiscal 2026 results scheduled for release after market close on February 25
- Implied volatility suggests approximately 13% price movement following earnings announcement
- Three leading firms—TD Cowen, Morgan Stanley, Citi—maintain Buy recommendations with $270 targets
- Shares have declined 21.4% since the start of the year after plunging 30% post-Q3
- Company announced $200 million strategic partnership with OpenAI earlier this month
Snowflake (SNOW) prepares to unveil its fourth-quarter fiscal 2026 financial performance this Wednesday, February 25, with shares trading 21.4% below their year-end levels.
The data cloud platform provider experienced a sharp 30% decline following its third-quarter announcement, pressured by modest earnings outperformance and mounting concerns regarding artificial intelligence’s potential impact on traditional software companies.
Analyst consensus calls for adjusted earnings per share of $0.27, representing a decline from $0.30 in the comparable period last year. Revenue projections point to a 27.8% year-over-year increase reaching $1.26 billion. Historical performance shows Snowflake has surpassed earnings estimates in seven out of the past eight reporting periods.
The options market signals an anticipated price movement of approximately 12.79% in either direction post-announcement—significantly exceeding the stock’s average four-quarter post-earnings swing of 6.7%.
Wall Street Consensus: $270 Price Target Emerges
Three prominent Wall Street firms recently adjusted their price objectives to $270 while maintaining positive investment recommendations.
TD Cowen analyst Derrick Wood highlighted encouraging trends in customer growth, data consumption, and AI inference workloads. He contends Snowflake remains resilient amid widespread anxiety about AI’s disruptive potential across the software industry.
Morgan Stanley’s Sanjit Singh characterized the recent SaaS sector selloff as excessive, noting that his proprietary demand analysis indicates stable fundamentals, positioning current levels as an attractive entry opportunity heading into 2026.
Citi analyst Tyler Radke attributed his target reduction to valuation compression affecting the entire software sector. He emphasized Snowflake’s consumption-driven revenue model as “one of the stronger AI-proof consumption business models” and characterized the post-Q3 selloff as disproportionate.
Strategic OpenAI Partnership Valued at $200 Million
Earlier this month on February 2, Snowflake unveiled a multi-year strategic collaboration worth $200 million with OpenAI. This agreement provides the company’s 12,600 enterprise customers worldwide with integrated access to OpenAI capabilities via Cortex AI, Snowflake’s proprietary generative AI platform.
The partnership supports implementations across major cloud infrastructures including AWS, Microsoft Azure, and Google Cloud Platform.
Analyst Community Perspective
According to TipRanks data, SNOW receives a Strong Buy rating based on 31 Buy recommendations and 3 Hold ratings. The consensus price target of $269.86 suggests potential upside of approximately 56.4% from current trading levels.
The company releases Q4 results after the closing bell on Wednesday, February 25
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