TLDR
- SNOW reports Q4 fiscal 2026 earnings after market close on February 25
- Options traders pricing in a ~13% move in either direction post-results
- TD Cowen, Morgan Stanley, and Citi all cut price targets to $270, keeping Buy ratings
- Stock is down 21.4% year-to-date following a 30% drop after Q3 results
- Snowflake signed a $200 million multi-year deal with OpenAI on February 2
Snowflake (SNOW) heads into its Q4 fiscal 2026 earnings report on Wednesday, February 25, with the stock sitting 21.4% lower year-to-date.
The stock took a 30% hit after Q3 results, hurt by a thin earnings beat and rising fears about AI disrupting the broader software sector.
Wall Street expects adjusted EPS of $0.27, down from $0.30 a year ago. Revenue is forecast to rise 27.8% year-over-year to $1.26 billion. Worth noting: Snowflake has beaten earnings expectations in seven of the last eight quarters.
Options traders are pricing in a swing of roughly 12.79% in either direction following the results — nearly double the stock’s four-quarter average post-earnings move of 6.7%.
Three Analysts, One Price Target
Ahead of the print, three major analysts all trimmed their targets to $270 — but held their Buy ratings.
TD Cowen’s Derrick Wood pointed to growth in user counts, data volumes, and AI inference activity as positive signals. He argued Snowflake is holding its own against the AI disruption fears swirling around the software sector.
Morgan Stanley’s Sanjit Singh called the SaaS sell-off overdone and said his demand checks looked steady, flagging this as a solid entry point into 2026.
Citi’s Tyler Radke blamed multiple compression across software for the target cut. He described Snowflake’s consumption-based model as “one of the stronger AI-proof consumption business models” and called the post-Q3 drop excessive.
$200 Million OpenAI Deal
On February 2, Snowflake announced a multi-year, $200 million agreement with OpenAI. The deal gives its 12,600 global customers direct access to OpenAI models through Cortex AI, Snowflake’s native generative AI engine.
The integration covers deployments across AWS, Microsoft Azure, and Google Cloud Platform.
What the Street Is Saying
On TipRanks, SNOW carries a Strong Buy consensus based on 31 Buy ratings and 3 Holds. The average price target of $269.86 implies around 56.4% upside from current levels.
Q4 results are due after market close on Wednesday, February 25
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