Snowflake (NASDAQ: SNOW) reported a 35% year-over-year revenue increase for Q2 fiscal year 2027, amounting to $1.55 billion, prompting a stock surge of over 20%. The company added 692 net new customers, a 32% increase compared to the previous year, and raised its full-year product revenue guidance to $6.07 billion. Notably, Snowflake saw a significant non-GAAP operating margin expansion of 430 basis points.
Analysts responded positively, raising price targets for Snowflake into the high $300s to low $400s, with an estimated new high of $450 per share. Despite concerns over valuation, trading above 100x current-year earnings, the market reflects confidence due to strong growth potential and improving cash flows. Investors are now closely observing potential risks, including share dilution and short interest trends.
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