Snowflake’s stock (SNOW) is 14% higher in today’s pre-market, aiming to breach the 52-week high of $229.27 into the open, propelled by a strong earnings report and a wave of price target hikes on Wall St. The positive market reaction underscores confidence in Snowflake’s growth trajectory and its position in the data analytics and artificial intelligence (AI) landscape.

The stock’s upward momentum followed the release of its fiscal second-quarter results, which exceeded expectations. Snowflake reported product revenue of $1.09 billion for the quarter ending July 31, 2025.

This figure not only beat the street, but also represented a substantial year-over-year increase, adding fuel to a bullish fire. Remaining performance obligations (RPO), a key indicator of future revenue, also saw a significant rise, climbing 33% to $6.9 billion.

Several leading investment firms promptly adjusted their price targets to reflect Snowflake’s strong performance:

Wells Fargo: Increased its target to $275 from $250 (Overweight).
Jefferies: Raised its target to $270 from $250 (Buy).
JPMorgan Chase: Boosted its price target to $255 from $225 (Overweight).
Barclays: Increased its target to $255 from $219 (Overweight).
Citizens JMP Securities: Assigned the highest target, raising it to $283 from $260 (Outperform).
Bernstein: Increased its target to $221 from $191 (Market Perform).

Driving this optimism is the increasing demand for Snowflake’s data analytics services, fueled by enterprises’ growing investments in AI initiatives.

Snowflake has strategically positioned itself to capitalize on this trend, having recently expanded its partnership with Microsoft Azure to integrate OpenAI models into Snowflake Cortex AI.

This integration is designed to enhance Snowflake’s AI capabilities and broaden its appeal to enterprises seeking advanced AI solutions.

Furthermore, their multi-year partnership with AI data cloud company Anthropic, allows global enterprises to develop and scale efficient and trusted AI products. Anthropic’s latest Claude 3.5 models will be accessible within Snowflake Cortex AI on Amazon Web Services.

The company’s revised fiscal 2026 product revenue forecast to $4.40 billion, up from $4.33 billion, was also a clear positive, completing the beat and raise narrative. Leading indicators are strong, with analysts citing accelerating AI adoption layered on a robust core data platform. Snowflake has also delivered a remarkable 250 new features over the last six months.

Bull Case:

Exceeded fiscal Q2 expectations with product revenue of $1.09 billion.
Future revenue indicator (RPO) surged by 33% to $6.9 billion.
Capitalizing on high demand for data analytics driven by enterprise AI investments.
Strategic AI partnerships with Microsoft (OpenAI) and Anthropic (Claude 3.5) are enhancing product capabilities.
Upgraded fiscal 2026 product revenue forecast signals strong management confidence.
Multiple investment firms, including Wells Fargo and JPMorgan, have raised their price targets significantly.

Bear Case:

Sustaining the current high growth rate is a key challenge and risk factor.
The company is not yet profitable on a GAAP basis (P/E is N/A), which can be a concern for value-oriented investors.
Faces intense competition from other major players in the cloud data and AI sectors.

The combination of an earnings beat and raise, alongside bullish analyst sentiment has created significant upward momentum for Snowflake. New 52 week highs look increasingly likely, yet resistance can also be found around previous highs.

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