Snowflake Inc. (SNOW) received a positive analyst rating update, with a revised price target reflecting confidence in its growth trajectory. The report highlights expanding enterprise adoption and robust revenue momentum in cloud data solutions.
- Snowflake Inc. (SNOW) reported $1.02 billion in revenue for the most recent quarter, a 26% year-over-year increase.
- Net dollar retention exceeded 120%, indicating strong customer expansion and retention.
- Analyst price target raised to $230 per share, reflecting a 15% upside from current levels.
- Recommendation upgraded to 'outperform' based on improved margins and enterprise adoption.
- 18 new Fortune 500 customers added in Q3, signaling continued market penetration.
- Projected fiscal 2026 revenue growth between 22% and 25%.
Snowflake Inc. (SNOW) has emerged as a focal point in tech equity markets following a recent analyst report citing strengthened fundamentals and improved long-term outlook. The update, issued within the past 24 hours, underscores growing confidence in the company’s ability to maintain leadership in cloud data warehousing amid increasing demand from large enterprises and digital-native firms. The report notes that Snowflake’s revenue grew 26% year-over-year in the most recent quarter, reaching $1.02 billion, with net dollar retention exceeding 120%—a strong indicator of customer stickiness and cross-selling success. Analysts attribute this performance to expanded product offerings, including AI-driven analytics and enhanced data sharing capabilities, which are driving adoption across finance, healthcare, and retail sectors. A key takeaway from the report is the revised price target of $230 per share, representing a 15% upside from current levels. The recommendation was upgraded to 'outperform' from 'neutral,' citing improved gross margins and a more sustainable growth model as a result of cost discipline and strategic investments in global infrastructure. The report also highlights that Snowflake added 18 new Fortune 500 customers in Q3, reinforcing its enterprise market position. Market reaction has been immediate, with SNOW shares rising 5.3% in after-hours trading. Investors are particularly attentive to the company's ability to convert its data platform into recurring revenue streams, which now account for over 90% of total revenue. The momentum is expected to continue into 2026, with analysts projecting 22% to 25% revenue growth in the next fiscal year.