On September 2, 2026, Snowflake Inc. (NYSE:SNOW) reported second-quarter fiscal 2027 results for the period ended July 31, 2026. Revenue rose 35% to $1.55 billion against a $1.48 billion consensus, product revenue grew 37% to $1.49 billion, and adjusted earnings came in at $0.62 per share versus the $0.45 analysts expected. Management raised full-year product revenue guidance to $6.07 billion from $5.84 billion. Shares surged more than 20% in extended trading, and within 48 hours eight firms had rewritten their models.
Snowflake’s Momentum Comes at a Price
The size of the target revisions tells the story.
Argus analyst Joseph Bonner moved to $450 from $300, keeping a Buy rating and arguing that new AI products are driving sales, customer conversion, and retention while Snowflake Inc. grows well above management’s 30% north star target with expanding margins.
Goldman Sachs also went to $436 from $300, noting product revenue landed 5% above the Street and EBIT margins 270 basis points ahead, and said the stock reaction reflects a setup where estimates keep moving higher over the next 18 months.
JPMorgan lifted its target to $426 from $285 on a third straight quarter of product revenue acceleration, while Raymond James analyst Adam Tindle went to $425 from $275, framing Snowflake Inc. as an AI-native control plane for enterprise workflows beyond analytics.
RBC Capital, raising its target to $440 from $372, tracked the acceleration directly: 37% product revenue growth against 34% the prior quarter and 30% in the fourth quarter.
TD Cowen and Monness Crespi both moved to $450, and Truist to $425, calling the guidance raise one of the strongest it has seen from Snowflake in years.
The operating detail supports the enthusiasm. Net revenue retention held at 126%, remaining performance obligations reached $9.00 billion on 30% growth, and Snowflake Inc. added 692 net new customers. CoCo passed 9,100 accounts after adding more than 2,000 in the quarter, while CoWork reached 5,800. CEO Sridhar Ramaswamy said AI products drove roughly half of the acceleration.
No analyst in the group is bearish, which is itself the risk. Snowflake Inc. trades at 166.67 times forward earnings as of September 15, 2026, against Datadog at 76.92 and MongoDB at 62.89, after gaining more than 45% this year while the software application group fell over 11%.
The profitability picture is also narrower than the headline suggests: the quarter produced a GAAP operating loss of $263.0 million, a negative 17.0% margin, and free cash flow of $83.8 million on a 5.4% margin.
Argus itself noted that a consumption-based revenue model can produce inconsistent results from quarter to quarter, which is a real exposure when guidance now assumes 36% growth for the year.
What The Smart Money Sees
AQR Capital Management held the largest hedge fund position, 4.43 million shares worth $1.11 billion as of the second quarter of 2026, down 10% from 4.91 million shares. Point72 Asset Management raised its stake 2,449% to $716 million, and Citadel Investment Group added 117% to $510 million.
Maverick Capital, Viking Global, Whale Rock Capital Management, and Kinetic Partners Management were among the biggest new entrants, buying 977,710, 960,138, 884,691, and 805,000 shares respectively.
Overall hedge fund ownership jumped to 103 funds from 80. Short interest sits at 5.25% of float, with 18.06 million shares short as of August 31, 2026, down from 18.95 million a month earlier.
Snowflake Inc. gave the street exactly what it wanted: a third consecutive quarter of accelerating product revenue, margin expansion, and a guidance raise large enough to justify target hikes.
The unresolved question is what the market already paid for it. At 166.67 times forward earnings with a GAAP operating loss still on the books, the consumption model has to keep converting AI adoption into consumption without a single soft quarter, because the multiple leaves little room to absorb one.
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