Key Takeaways
- SNOW shares have climbed 46% year-to-date in 2026, currently trading between $319 and $331 before Wednesday’s report
- Wall Street forecasts adjusted earnings of $0.45 per share and revenues reaching $1.48 billion for the fiscal second quarter
- Price target upgrades include Rosenblatt’s boost to $345, while the analyst consensus shows a “Moderate Buy” rating with $333.08 average target
- Company insiders have divested more than 1.1 million shares valued at $321 million over the last quarter
- Increasing pressure from Microsoft, Databricks, and emerging AI technologies represents significant competitive headwinds
Shares of Snowflake (SNOW) have experienced remarkable momentum throughout 2026. The cloud data platform provider has seen its stock price surge 46% since January, currently hovering around $319, with the majority of gains materializing during a dramatic single-day jump on May 28 following impressive fiscal first-quarter results.
The market now turns its attention to what comes next. The company is scheduled to release its fiscal second-quarter financial results Wednesday after market close, and investor anticipation is building.
The Street is looking for adjusted earnings per share of $0.45, representing growth from $0.35 in the comparable period last year. Revenue projections point to approximately $1.48 billion, marking nearly 30% year-over-year expansion, though this represents a modest deceleration from the 33% growth rate achieved in the previous quarter.
Management’s previous guidance projected product revenue between $1.415 billion and $1.42 billion, alongside an adjusted operating margin target of 12.5%.
Wall Street Turns More Bullish
Rosenblatt Securities upgraded its price objective for SNOW from $285 to $345 on Tuesday, reaffirming its Buy recommendation. This new target suggests approximately 4% potential upside from the previous trading session’s close.
Cantor Fitzgerald demonstrated even greater optimism, pushing its target to $405 while keeping an Overweight stance. The firm anticipates product revenue will exceed the company’s own projections by over 3%.
KeyBanc similarly maintained its Overweight rating and elevated its price target from $325 to $375. Across 34 analysts with buy recommendations, the consensus rating stands at “Moderate Buy” with an average price objective of $333.08.
UBS analyst Karl Keirstead maintains a Buy rating with a $425 target. He emphasizes that Snowflake’s consumption-based revenue model provides better insulation from AI-driven disruption compared to traditional subscription-based software companies.
Potential Challenges Before Results
Despite the optimism, significant risks remain. At approximately $331, SNOW commands a forward revenue multiple of roughly 16 times, substantially exceeding the broader software sector ETF (IGV) which trades at 7.7 times. Keirstead cautioned that this premium valuation “leaves little room for error.”
Insider activity raises eyebrows. During the past three months, company insiders have sold 1.16 million shares totaling approximately $321.7 million. Executive Vice President Christian Kleinerman alone disposed of 25,000 shares in August at $325 per share.
Short interest remains elevated as well. Near-record levels of short positions indicate substantial skepticism persists despite the stock’s impressive 2026 performance.
The competitive landscape presents additional concerns. Microsoft, privately-held data platform competitor Databricks, and AI models themselves are all vying for the same enterprise data workloads. Some respondents in a KeyBanc survey indicated plans to leverage large-language models to optimize and potentially reduce their Snowflake expenditures.
However, these cost-reduction initiatives remain largely theoretical rather than operational. Additionally, the counterargument that AI agents require robust data access infrastructure could ultimately benefit Snowflake’s positioning.
Historical volatility suggests Wednesday could bring dramatic movement. The stock has averaged a 14.1% swing in either direction following its last eight quarterly reports. Options pricing indicates traders are anticipating another significant move this week.
Over the past twelve months, Snowflake shares have reached a high of $341.95 and touched a low of $118.30. The 50-day moving average currently sits at $289.86.
The company will report results Wednesday after the closing bell.
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