TLDR
- Snowflake Q1 FY2027 product revenue hit $1.334 billion, up 33.9% year-over-year, beating estimates by 5.3%
- AI product Cortex Code (CoCo) scaled to over 7,100 accounts since February 2026 and is the biggest driver of upgraded guidance
- HSBC upgraded SNOW to Buy and raised its price target from $176 to $289
- Multiple analysts raised price targets, with Monness, Crespi, Hardt setting the highest at $320
- Snowflake expanded partnerships with AWS and OpenAI and announced plans to acquire AI firm Natoma
Snowflake (SNOW) stock jumped roughly 3.6% to around $239.20 after the company posted first-quarter fiscal 2027 results that beat Wall Street expectations on both revenue and profit. The stock had already surged 39% in the past week heading into the report.
Q1 product revenue came in at $1.334 billion, up 33.9% year-over-year. That beat FactSet consensus by 5.3%. Operating income came in 35.2% above estimates.
Snowflake also raised its full-year guidance, and bumped operating margin guidance by 100 basis points. Product gross margin guidance for FY2027 remains at 75%.
The results were driven in large part by strong demand for Snowflake’s AI products, especially Cortex Code, branded internally as CoCo. The tool reached general availability in February 2026 and has since scaled to more than 7,100 customer accounts.
Management called CoCo the single largest driver behind the FY2027 guidance upgrade. That’s a fast ramp for a product less than six months into wide availability.
Core data platform consumption also picked up speed. Customers are moving workloads onto Snowflake faster to support governed AI use cases, which is accelerating both direct AI revenue and base platform usage at the same time.
Analyst Upgrades Roll In
HSBC made the most eye-catching move, upgrading SNOW from Hold to Buy and lifting its price target from $176 to $289. Analyst Stephen Bersey said CoCo represents the clearest sign yet of Snowflake’s ability to monetize AI.
Monness, Crespi, Hardt went further, setting a target of $320. Benchmark raised to $270, citing record sequential dollar growth. Cantor Fitzgerald landed at $282. Truist Securities set $275, and Freedom Broker went to $300.
That’s a broad sweep of upgrades in a short window. Wall Street is clearly resetting its view on Snowflake’s growth trajectory.
Partnerships and Acquisition
Snowflake also announced expanded partnerships with AWS and OpenAI, deepening its position in the enterprise AI stack. The company separately confirmed plans to acquire Natoma, an AI startup, though terms were not disclosed.
These moves extend Snowflake’s reach across the AI ecosystem — both in cloud infrastructure and in applied AI tooling.
Management did flag risks on the call. Rising AI costs and execution challenges around scaling new products were called out as areas to watch.
Snowflake remains unprofitable on a trailing twelve-month basis. However, analysts now forecast the company to reach profitability this year, with EPS estimates sitting at $2.83 for FY2027.
InvestingPro flagged the stock as potentially overvalued at current levels, even after accounting for the strong earnings beat and raised guidance.
The stock’s year-to-date gain stands at 9.04%, with a market cap of approximately $60.75 billion as of the latest data.
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