Snowflake AI Push Accelerates Revenue Growth as Analysts Raise Price Targets Ahead of Earnings

Data cloud giant Snowflake Inc. (NYSE: SNOW) is heading toward its Sept. 2 earnings release against a backdrop of accelerating revenue momentum and expanding enterprise artificial intelligence deployment, according to market coverage by Yahoo Finance. Wall Street research firms have steadily raised their financial targets on the cloud software provider in recent weeks, reflecting heightened expectations for the company's emerging suite of AI tools.

Leading the institutional updates, TD Cowen increased its stock price target on Snowflake to $370 from $300 on Aug. 20, while reissuing a Buy rating on the equity. The upgrade follows similar price target revisions from several major investment banks, including Deutsche Bank, Truist, Bank of America, and UBS, all of which pointed to increasing enterprise adoption of Snowflake's data infrastructure platform.

A primary driver behind the bullish institutional consensus is Cortex Code, an artificial intelligence coding agent integrated directly into the Snowflake data cloud platform. Known commercially as CoCo, the automated development assistant has helped generate the highest quarter-over-quarter dollar expansion in Snowflake’s history, establishing itself as a central component of the company's product architecture.

For the first quarter of fiscal 2027, Snowflake posted total revenue of $1.39 billion, representing a 33% increase compared to the corresponding period in the previous fiscal year. Chief Executive Officer Sridhar Ramaswamy reported that product revenue specifically grew to $1.33 billion, up 34% year-over-year, marking the firm's strongest sequential dollar expansion to date. In addition, the company's remaining performance obligations—a key indicator of future contracted revenue—expanded 38% year-over-year to hit $9.21 billion.

Management boosted its full-year product revenue outlook for fiscal 2027 to $5.84 billion, representing expected year-over-year growth of 31%. The updated figure marks a significant upward adjustment from Snowflake's prior full-year guidance of $5.66 billion. Analysts view the upwardly revised targets as evidence that Snowflake may be reversing a prolonged period of moderating revenue expansion.

In its research report, TD Cowen cited two primary product catalysts supporting Snowflake's growth path. Beyond the performance gains attributed to the Cortex Code agent, the firm highlighted the commercial momentum of the Cortex AI gateway. Designed as a centralized control plane and governance architecture, the gateway enables enterprise customers to deploy and manage AI software agents while tracking computational consumption costs, expanding Snowflake's presence in enterprise security and AI operations management.

Despite the positive operational metrics and product traction, financial analysts caution that much of the optimism may already be incorporated into Snowflake's share price. Prior to the recent batch of target adjustments, Snowflake shares had already gained 48% year-to-date. Analysts note that with significant valuation expansion already accomplished, the upcoming quarterly earnings release may require additional operational upside beyond consensus expectations to drive further stock gains.

Institutional ownership data compiled by Insider Monkey illustrates shifting fund activity surrounding Snowflake equity. While the total number of hedge funds holding positions in the company dropped to 80 during the first quarter of 2026 from 90 in the prior quarter, subsequent second-quarter filings revealed heavy accumulation by select asset managers. Notably, Point72 Asset Management expanded its stake in Snowflake by approximately 2,449%, accumulating 2.81 million shares valued at $716.1 million.