<div id="readability-page-1">Shares of Snowflake Inc. ( SNOW ) tanked in early trading on Thursday, even after the company reported upbeat third-quarter results on Wednesday. Here are some key analyst takeaways: <ul> <li>Cantor Fitzgerald analyst Thomas Blakey reaffirmed an Overweight rating; price target increased from $275 to $278.</li> <li>Scotiabank analyst Patrick Colville maintained a Sector Outperform rating; price target raised $280 to $290.</li> <li>Canaccord Genuity analyst Kingsley Crane reiterated a Buy rating; price target is higher from $260 to $270.</li> <li>KeyBanc Capital Markets analyst Eric Heath reaffirmed an Overweight rating; lifts the price target from $275 to $285.</li> <li>JPMorgan analyst Mark Murphy reiterated an Overweight rating; raises price target from $255 to $268.</li> <li>Goldman Sachs analyst Kash Rangan maintained a Buy rating; takes price target higher, from $260 to $275.</li> <li>Wedbush analyst Dan Ives reaffirmed an Outperform rating and price target of $270.</li> <li>DA Davidson analyst Gil Luria maintained a Buy rating and price target of $300.</li> <li>BTIG analyst Gray Powell reaffirmed a Buy rating and price target of $312.</li> <li>Needham analyst Mike Cikos maintained a Buy rating and price target of $280.</li> <li>Guggenheim Securities analyst John DiFucci reiterated a Neutral rating on the stock.</li> <li>BofA Securities analyst Brad Sills reaffirmed a Buy rating and price target of $310.</li> </ul> Check out other analyst stock ratings. Cantor Fitzgerald: Snowflake reported strong fiscal third-quarter results, with RPO (remaining performance obligations) coming in at $7.9 billion. Customers continue expanding their usage on the company's platform, Blakey said. RPO growth accelerated to 37.5%, from 32.5% in the prior quarter. Bookings snowballed. Snowflake booking nearly $1 billion in net new RPO in the quarter, 89% higher than in the year-ago quarter, the analyst stated. The company announced $100 million in AI ARR (annual recurrent revenue) one quarter earlier than expected, &#34;driven by Cortex and Snowflake Intelligence, which is its fastest ramping new product in Snowflake history,&#34; he further wrote. Scotiabank: Snowflake's year-on-year product revenue growth decelerated sequentially by around 3 percentage points and &#34;the magnitude of the beat wasn't as strong as last quarter,&#34; Colville said. The company's release fell short of expectations, following impressive performances from Datadog Inc ( DDOG ) , Confluent Inc ( CFLT ) and MongoDB Inc , he added. &#34;Snowflake's operating margin beat in 3Q was a bit skinny and management is raising the F26 guide by less than the beat,&#34; the analyst wrote. He stated, however, that the company's guidance reflects a &#34;rapid snap back&#34; in the fourth quarter. Canaccord Genuity: Snowflake's results indicated good sales execution, consumption &#34;turning a corner,&#34; and a ramp up in AI workloads, Crane said. Product revenue grew 29% year-on-year, while operating margins expanded by around 460 basis points (bps) and NRR remained stable at 125%, he added. &#34;RPO bookings were a highlight with four 9-figure deals signed, and +615 total net new customers were a record,&#34; the analyst wrote. AI products drove around 50% of bookings in the third quarter, he added. KeyBanc Capital Markets: Snowflake's revenue grew 29% year-on-year to $1,213 million, beating consensus of $1,182 million, Heath said. &#34;Bookings were notably strong, up 50% y/y, and an acceleration from ~30% y/y in F1H, helped by four 9-figure expansion deals,&#34; he wrote. Management guided to fourth-quarter product revenue of $1,195-$1,200 million, above consensus of $1,181 million, the analyst stated. The fiscal 2026 product revenue guidance was raised to $4,446 million, up $51 million from prior outlook and ahead of consensus of $4,396 million, he added. JPMorgan: Snowflake's product revenue beat was lower than the previous quarter's outsized upside, Murphy said. Product revenue growth dipped below 30%, which surprised investors expecting the upside delivered in the second quarter, he added. &#34;Q3 product revenue upside of ~3%. vs. the midpoint of guidance is still a healthy beat, in our view,&#34; the analyst wrote. Snowflake continues to execute well, drive product adoption, and &#34;improve its positioning within the data modernization and AI mega trends,&#34; he further stated. Goldman Sachs: Snowflake's product revenue came in 2.3% above consensus, while the fourth-quarter guidance was 1.1% higher than estimates, Rangan said. Operating margin of 7% missed expectations of 8.4%, he added. &#34;Snowflake Intelligence is seeing the fastest adoption ramp of any new product,&#34; the analyst wrote. The company hit $100 million in AI ARR one quarter earlier than projected, he further stated. Wedbush: Snowflake's total customer count grew 20% year-on-year to 12,621 and came above Street expectations of 12,062, Ives said. Non-GAAP operating margin of 10.8% beat consensus of 9.3%, he added, The company is well-positioned to &#34;stabilize margins in the near-term as it invests to capture the massive growth opportunity taking place,&#34; the analyst wrote. The strong results and fourth-quarter product revenue guidance are overshadowed by elevated expectations into the print. DA Davidson: Snowflake reported strong earnings for the fiscal Q3, with a beat on both the top- and bottom-line. However, that non-GAAP operating margins contracted to 10.8%, from 11.1% in the previous quarter. &#34;Management continued to reiterate the strength of their AI/ML and data engineering products with customers, while also mentioning that they’re continuing to rapidly bring new products into general availability,&#34; Luria said. Management's fiscal 2026 product revenue guidance indicates roughly 28% growth at the midpoint, he further stated. BTIG: Snowflake outperformed its product revenue guidance by $31 million in Q3. That’s much lower than the average of $42 million in the previous three quarters, Powell said. He added, however, that the company's second quarter results were boosted by some large customer migrations. Applying the $31 million beat to guidance suggests that Snowflake could exit fiscal 2026 with more than 30% product revenue growth, the analyst stated. This was &#34;a huge quarter,&#34; with RPO bookings up 50% year-on-year against tough comps, he further stated. Needham: Snowflake saw a deceleration in product revenue growth to 29% in Q3, from 32% in the previous quarter. Chikos said that investor expectations were &#34;elevated into the print.&#34; Snowflake's underlying fundamentals remained strong in the quarter, the analyst stated. &#34;The company continues to execute strongly against the core business,” he further wrote. Guggenheim Securities: The deceleration in Snowflake's product revenue growth was disappointing, DiFucci said. With numbers falling short of expectations, management's commentary focused on AI, he added. AI could become &#34;one of the most important technology advances in our lifetimes.” But it’s only around 2% of the company's revenue run-rate, the analyst stated. Snowflake may never see much benefit, he further wrote. BofA Securities: Snowflake reported strong results, with product revenue of $1.16 billion beating consensus by $28 million, Sills said. Performance was driven by &#34;broad-based consumption strength and momentum across enterprise customers,&#34; he added. &#34;Importantly, management noted that AI projects are being funded from large, digital transformation budgets rather than IT budgets, expanding Snowflake’s opportunity to grow wallet share,&#34; the analyst further wrote. SNOW Price Action: Shares of Snowflake had declined by 10.05% to $235.83 at the time of publication on Thursday. Read More: <ul> <li>Snowflake Has Already Hit $100 Million AI Run-Rate, CEO Says: ‘Real Usage…Not Hype’</li> </ul> Image: Shutterstock</div>

SNOW

Snowflake Inc. reported strong Q3 results with a 50% increase in bookings, driven by AI products. Despite this, shares fell as the upside was less than Q2. Analysts mostly maintained positive ratings, with several raising price targets. Key highlights include a $100 million AI ARR and strong RPO growth. However, some analysts noted a deceleration in product revenue growth and operating margin concerns. Overall, Snowflake is seen as well-positioned in AI and data modernization trends.

Snowflake Q3 AI Momentum Spikes Bookings 50%; Upside Falls Short Of Q2