Cantor Fitzgerald Boosts Snowflake (SNOW) Price Target to $405 Ahead of Q2 Results

Key Takeaways

Table of Contents

Cantor Fitzgerald boosted Snowflake’s price target by 44% to $405 from the previous $282, maintaining a Buy rating
This upward revision arrives just two days ahead of Snowflake’s fiscal Q2 2027 earnings announcement scheduled for September 2
Thomas Blakey, the covering analyst, anticipates product revenue will exceed the guidance midpoint by over 3%
Adoption of Cortex Code has reached an estimated 15-20% penetration among customers, leaving significant expansion potential
Consensus rating from Wall Street analysts stands at Strong Buy with a mean price target of $360.61

Snowflake has captured renewed investor attention following a significant price target adjustment from Cantor Fitzgerald. Analyst Thomas Blakey elevated his target by 44% to $405 from the prior $282 level, while maintaining his Buy recommendation. Currently trading around $324.60, SNOW shares are hovering close to their 52-week peak of $341.95.

Snowflake Inc., SNOW

The equity has experienced a remarkable 95% rally throughout the past six months, and Blakey maintains conviction that additional upside remains available as the company approaches its Q2 earnings disclosure on September 2.

The analyst’s optimistic stance stems from expanding valuation multiples within the software sector, especially for enterprises closely linked to agentic AI and data-intensive workflows. Blakey envisions Snowflake evolving into the dominant data and governance layer for organizations implementing AI agent technologies.

His market research indicates robust baseline consumption patterns alongside accelerating AI workload adoption, despite intensifying competitive dynamics and pricing pressures throughout the broader data and AI infrastructure landscape.

Blakey projects product revenue will surpass the guidance midpoint by more than 3%, a slight moderation from the previous quarter’s 5.5% outperformance. The company has delivered 31% revenue expansion over the trailing twelve-month period.

Cortex Code Fueling Additional Usage Growth

The adoption trajectory of Cortex Code emerged as a significant catalyst throughout Q2, with Blakey estimating current penetration at 15-20% of the total customer base. He identifies substantial opportunity as these implementations transition into full production environments.

Cortex AI has achieved broad utilization among major enterprise clients, while the CoWork offering is successfully extending Snowflake’s reach to less technical business users. Blakey highlighted that market participants will closely monitor whether these product innovations convert into durable consumption expansion.

Continuous cloud migration initiatives and the consolidation of data and AI workloads onto Snowflake’s governed infrastructure continue to contribute positive momentum.

The critical question approaching the earnings announcement centers on whether incremental AI-related spending will offset customer optimization initiatives, cost reduction measures, and contract renegotiations.

Street Expectations for Snowflake’s Q2 Performance

Blakey forecasts remaining performance obligation expansion of approximately 37%, aligning with consensus Street projections. He emphasized that Snowflake’s most significant contract renewals and purchasing activity typically occur in Q4, making quarterly timing an important consideration.

Regarding profitability metrics, Snowflake is anticipated to deliver results tracking closely with company guidance. Management has demonstrated willingness to absorb modest gross margin compression from higher-concentration AI workloads while simultaneously driving operating margin improvement.

The options market is currently implying approximately a 12% price movement in SNOW shares following the earnings announcement.

Several other analysts have similarly increased their targets in advance of the report. Benchmark elevated its target to $360, TD Cowen raised to $370 with a Buy rating, and Morgan Stanley reaffirmed its Overweight stance with a $300 target while projecting 34% product revenue growth for Q2. Guggenheim maintained its Neutral position.

The consensus Wall Street view on SNOW reflects a Strong Buy rating supported by 27 Buy recommendations and 3 Hold ratings issued over the most recent three-month period. The mean price target stands at $360.61, suggesting approximately 8.8% appreciation potential from present trading levels.

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