Goldman Sachs Keeps Buy on Snowflake, Cuts Price Target to $216
Goldman Sachs maintained its buy rating on Snowflake after Q4 and full-year 2026 results showing product revenue of $1.23 billion (up 30% YoY) and an 11% operating margin, both above consensus. The firm trimmed its target to $216 from $246 and highlighted 4,400 users of Cortex Code accelerating developer workflows.
1. Q4 and Full-Year 2026 Results
Snowflake reported Q4 product revenue of $1,227 million, up 30% year-over-year, and total revenue of $1,284 million, also up 30%. The company achieved an 11% operating margin versus a 7% estimate and guided for increased product revenue growth in fiscal 2027.
2. Goldman Sachs Rating Update
Goldman Sachs analysts maintained a buy rating but lowered the price target to $216 from $246 after reviewing the earnings beat. The adjustment reflects cautious optimism on valuation despite strong top-line and margin performance.
3. Cortex Code Adoption
Snowflake’s Cortex Code AI coding assistant, launched in November 2025, has attracted over 4,400 users. Customers report it compresses up to 16 workweeks of development into less than one month, boosting coding efficiency.
4. AI Automation Strategy
The firm emphasized Cortex Code as a key pillar of Snowflake’s AI automation push, positioning the platform to manage workflows across the full data lifecycle. Broader adoption suggests potential for increased wallet share among enterprise clients.