Snowflake (SNOW) Stock Forecast & Price Target

Snowflake has reported a year-over-year growth of 11% in New ARR, alongside an increase in its customer base, with 580 customers now spending over $1 million in trailing twelve months product revenue, up 7% sequentially. The company has demonstrated robust performance indicators, including a 33% year-over-year increase in Remaining Performance Obligations (RPO) to $6.9 billion and outperformance in product revenue, which exceeded expectations by 3-4%. Management's focus on strengthening core business activities and scaling new product adoption, particularly in high-demand areas such as data engineering and AI/ML, positions Snowflake favorably for sustained growth and improved financial performance.

Snowflake's F1Q26 product revenue guidance of $957.5 million, representing a year-over-year growth of 21.5%, fell slightly short of market expectations, signaling potential challenges in maintaining investor confidence amid macroeconomic uncertainties. The company has not yet achieved profitability and has recorded GAAP net losses consistently since its inception, which introduces further downward pressure on its stock valuation. Additionally, Snowflake's consumption-based business model may create increased revenue volatility compared to traditional subscription models, while competition intensifies as rivals enhance their own cloud services, potentially eroding Snowflake's competitive edge.