TLDR
- Snowflake reported Q2 fiscal 2027 revenue of $1.55 billion, up 35% year over year, beating analyst estimates of $1.48 billion
- Adjusted EPS came in at $0.62, well above the $0.45 consensus estimate
- SNOW stock surged 16.55% on September 3 following the earnings release and is up roughly 54% year-to-date
- AI analysts are split, with two Buy and four Hold ratings; Wall Street human analysts hold a Strong Buy consensus with an average price target of $435
- Insiders sold over 1.1 million shares worth approximately $318 million last quarter, while Saudi Central Bank nearly doubled its stake
Snowflake stock opened at $338.47 on Monday, sitting well off its 52-week low of $118.30 but below its high of $384.56. The stock jumped 16.55% on September 3 after the company posted fiscal Q2 2027 results that topped expectations across the board.
Revenue came in at $1.55 billion, up 35.1% year over year, beating the $1.48 billion analyst estimate. Product revenue rose 37% to $1.49 billion. Adjusted EPS hit $0.62 versus the $0.45 expected, a beat of $0.17.
Management pointed to AI demand as a key driver. AI-related offerings accounted for roughly half of the recent growth acceleration. The company’s CoCo coding agent added more than 2,000 new accounts during the quarter.
Guidance Gets a Lift
Snowflake raised its fiscal 2027 product revenue guidance to $6.07 billion, up from $5.84 billion. That prompted a wave of analyst target increases. UBS, Citi, JPMorgan, TD Cowen, Truist, DA Davidson, and Bank of America all moved their targets higher, with several landing in the $450 to $500 range.
Of 40 analysts covering the stock, 34 rate it a Buy, five a Hold, and one a Sell. The average price target sits at $414.24, though the 35-analyst subset tracked by TipRanks puts the average at $435, implying about 29% upside from current levels.
Not everyone is convinced. TipRanks’ AI analysts split two Buy and four Hold. Cautious models flag that Snowflake still runs at a GAAP net loss. The company reported a net loss of $191.7 million in Q2, improved from $297 million a year ago, but still a loss. Management also lowered fiscal 2027 gross margin guidance to 74%, citing rising costs tied to expanding AI workloads.
Insider Sales Draw Attention
Insider activity has been heavy. EVP Christian Kleinerman sold 10,000 shares for roughly $3.8 million under a pre-arranged 10b5-1 plan. Director Michael Speiser sold 50,338 shares on August 7 at $324.06 each, cutting his position by 65.9%. Director Frank Slootman sold 289,685 shares on July 20 at $274.39, reducing his stake by 91%.
In total, insiders offloaded 1,131,160 shares worth approximately $318 million last quarter. Corporate insiders now own just 4.8% of the company.
On the institutional side, Saudi Central Bank nearly doubled its SNOW position, adding 11,109 shares to bring its total to 22,989 shares valued at about $5.85 million. Institutional investors collectively hold 65.1% of the stock.
The stock has a market cap of $117.31 billion, a beta of 1.33, and a debt-to-equity ratio of 1.18. Its 50-day moving average sits at $297.66 and its 200-day at $220.60.
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