Despite the solid performance, Wedbush stated that high Street expectations may overshadow strong guidance.
- Wedbush noted that Snowflake’s key metrics, including product revenue and remaining performance obligations (RPO), showed notable strength.
- The firm indicated it would consider purchasing shares if prices experience any weakness.
- Both third-quarter revenue and adjusted EPS surpassed expectations.
Snowflake Inc. (SNOW) received backing from Wedbush Securities, which said the company reported strong third-quarter results, exceeding analyst expectations on both revenue and earnings, highlighting continued demand for its data cloud offerings.
Despite the solid performance, the firm stated that high Street expectations may overshadow strong guidance.
Key Metrics
Wedbush noted that Snowflake’s key metrics, including product revenue and remaining performance obligations (RPO), showed notable strength. The firm continues to maintain an ‘Outperform’ rating on Snowflake with a $270 price target.
The firm indicated it would consider purchasing shares if prices weaken, suggesting confidence in Snowflake’s long-term outlook. Snowflake’s stock traded over 8% lower in Thursday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels.
The company reported a third-quarter (Q3) revenue of $1.21 billion, a 29% year-on-year (YoY) increase, with the product revenue totaling $1.16 billion. Adjusted earnings per share (EPS) stood at $0.35. Both revenue and EPS beat the analysts’ consensus estimate of $1.18 billion and $0.31, respectively, according to Fiscal AI data.
For the fourth quarter, the company sees product revenue in the range of $1.195 billion to $1.2 billion.
Analyst Action
Morgan Stanley lifted its target for Snowflake shares to $299 from $272 and upheld an ‘Overweight’ rating, citing ongoing demand despite product revenue growth slowing to 29% compared with the previous quarter.
Stifel also increased its price target to $280 from $260. while keeping a ‘Buy’ rating on the stock. JPMorgan followed suit, raising its target to $268 from $255 and maintaining an ‘Overweight’ rating.
SNOW stock has gained over 71% in 2025 and over 42% in the last 12 months.
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