Snowflake Stock (SNOW) Falls Even as Analysts Raise Price Target Ahead of Q2 Earnings, Cite Solid Demand

Shares in Snowflake (SNOW), the cloud-based data platform provider, edged lower to about $316. The decline came even as more analysts raised their price targets on SNOW stock ahead of the company's Q2 2027 earnings expected next Wednesday, September 2, after market close. Analysts also reaffirmed their Buy ratings as they continue to see robust demand for Snowflake's products.

Notably, Wall Street expects Snowflake revenue to come in at $1.48 billion, up by 30% from a year ago. Analysts also anticipate earnings per share of $0.45, marking 29% growth from last year.

Citi Bullish on Adoption of Snowflake's Coco

On Wednesday, Citi's four-star analyst Tyler Radke maintained his Buy rating. He raised his price target from $320 to $395, suggesting about 25% upside.

With Snowflake's shares up by about 44% year-to-date, expectations from the second-quarter earnings are very high, Radke argued. However, the analyst's checks with Snowflake partners show that more customers are adopting its Coco AI data coding and analytics tool.

Also, more clients, especially financial services firms, are migrating to Snowflake. However, Radke also pointed out that his new rating reflects software market multiple expansion. In other words, investors are now willing to pay more for each dollar of earnings by software companies.

Benchmark Is Bullish on Enterprise Demand

Similarly, Benchmark's five-star analyst Yi Fu Lee on Tuesday reiterated his Buy rating on SNOW stock. He lifted his price target from $290 to $360, implying about 14% upside.

Lee noted that levels of corporate projects focused on enterprise AI, cloud computing, and data continue to hold up well. What's more, Benchmark's industry check shows that demand for hyperscale cloud infrastructure, data platforms, and AI software remains favorable.

This demand backdrop is supported by the fact that the average growth rate of the three largest cloud platforms stood at 54%. The platforms are Amazon Web Services (AMZN), Microsoft Azure (MSFT), and Google Cloud Platform (GOOGL). This is the strongest average Benchmark has seen since 2022.

"As such, we believe AI data cloud leader Snowflake will comfortably exceed second-quarter fiscal 2027 consensus expectations on product revenue growth of +30% year-over-year and operating income and margin at 12.5%," Lee noted.

Is Snowflake Stock a Good Buy Now?

Across Wall Street, Snowflake's shares remain a Strong Buy based on analysts' consensus rating. This breaks down into 35 Buys and three Holds issued by 38 analysts over the past three months.

However, the average SNOW price target of $339.42 only implies about 7% upside (see SNOW stock forecast here).