Key Stats for SNOW Stock
- Today’s Performance: 10%
- 52-Week Range: $118 to $282
- Valuation Model Target Price: $586
- Implied Upside: 109%
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What Happened?
Snowflake Inc. stock rose about 10% today, recently trading near $281 per share as investors continued to reprice the company after its stronger Q1 fiscal 2027 report, higher full-year product revenue outlook, new $6 billion AWS agreement, and a broad wave of analyst price target increases. The move kept Snowflake near the center of the software rally, with investors treating the company less like a pressured cloud stock and more like a direct beneficiary of enterprise AI spending as it competes with Databricks, Microsoft Fabric and Azure, Google BigQuery, AWS Redshift, and Oracle for enterprise data, analytics, and AI workloads.
The stock moved higher because Snowflake’s Q1 report showed that AI demand is already turning into faster product revenue growth, stronger customer usage, a larger backlog, and higher full-year guidance. Revenue rose 33% year over year to $1.39 billion, product revenue rose 34% to $1.33 billion, remaining performance obligations increased 38% to $9.21 billion, and management raised fiscal 2027 product revenue guidance to $5.84 billion from $5.66 billion. That mattered because Snowflake is showing that companies still need governed data infrastructure before they can safely build AI apps, agents, analytics tools, and business workflows at scale.
This week, Snowflake’s Q1 fiscal 2027 earnings call added more support to the rally, with product revenue rising 34% year over year to $1.334 billion, net revenue retention improving to 126%, and non-GAAP operating margin expanding over 300 basis points to 12%. Management also raised its FY 2027 product revenue outlook to $5.84 billion, or 31% growth, after seeing strength in both the core data platform and AI products like Snowflake Intelligence and Cortex Code.
CEO Sridhar Ramaswamy said, “AI is compounding Snowflake’s advantage in data,” while the company highlighted 13,912 customers, 779 customers spending more than $1 million, 64 customers spending more than $10 million, and the new $6 billion, five-year AWS agreement.
Analyst and institutional updates added another layer of support. Reuters reported that at least 30 analysts raised their price targets after the report, lifting the median target to $280 from $230. Recent filings were mixed but still newsworthy: Nomura Asset Management increased its Snowflake stake by 21%, Norges Bank opened a new position worth about $974 million, Eurizon Capital SGR opened a new position worth about $29 million, and Black Swift Group cut its position by 78%. The filing picture was not one-way, but the bigger story remained positive because stronger earnings, AI adoption, analyst target hikes, and selective institutional buying gave investors more reasons to reprice Snowflake higher.
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Is Snowflake Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth: around 27%
- Operating Margins: 16%
- Exit P/E Multiple: 142x
Snowflake appears undervalued under this model, with a target price of $586 compared with a recent price near $281, implying about 109% total upside over about three years.
The revenue growth assumption depends on Snowflake keeping product revenue strong as large enterprises move more data, AI workloads, and application development onto its platform.
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Snowflake Intelligence matters because it gives business users a natural-language way to ask questions, analyze company data, and take action, while Cortex Code helps developers build apps, data pipelines, agents, and workflows faster inside Snowflake.
The margin assumption depends on Snowflake turning faster usage into better operating leverage, meaning revenue growth needs to scale faster than hiring, infrastructure spending, and AI product costs.
The exit multiple remains aggressive, so Snowflake needs to keep proving that AI is expanding the core data cloud business rather than becoming a low-margin add-on.
At current levels, Snowflake looks undervalued if AI-driven data demand keeps accelerating, the AWS partnership expands customer adoption, and faster revenue growth turns into better profitability.
How Much Upside Does Snowflake Stock Have From Here?
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All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
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