Snowflake lifts FY27 revenue guidance as AI offerings, core data platform strength boosts results
SNOW•Drivers behind the results
- AI product adoption - Co said increased adoption of AI offerings, including CoCo and CoWork, contributed to product revenue growth
- Core platform momentum - Growth in core data platform usage supported revenue acceleration, per CFO Brian Robins
- Customer expansion - Net new customer additions, including Global 2000 firms, contributed to business growth
Analyst coverage and valuation
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 46 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
- The average consensus recommendation for the it services & consulting peer group is "buy"
- Wall Street's median 12-month price target for Snowflake Inc. is $322.50, about 0.8% above its September 1 closing price of $319.80
- The stock recently traded at 134 times the next 12-month earnings vs. a P/E of 119 three months ago
Guidance raised for FY27 and Q3
- Snowflake raises FY27 product revenue guidance to $6.07 bln, up 36% year-over-year
- Company sees Q3 FY27 product revenue of $1.588 bln to $1.593 bln, up 37%-38%
- Company expects FY27 non-GAAP operating margin of 14.5%, up from prior 13.5%
