Core Viewpoint - Snowflake Inc is expected to report strong third-quarter growth driven by increased enterprise adoption of its data platform for artificial intelligence and Agentic AI applications [1][4]. Financial Performance - Analyst Blair Abernethy maintains a Buy rating on Snowflake and raises the price target from $250 to $275 [1]. - For the third quarter, product revenue is expected to reach $1.143 billion, exceeding guidance and consensus, with total revenue projected at $1.192 billion, reflecting a 27% year-over-year increase [5]. - The forecast includes an adjusted operating margin of 9% and earnings per share (EPS) of 32 cents, slightly above consensus [6]. Growth Estimates - Abernethy models a 27% year-over-year organic product revenue growth for the third quarter, a decrease from 32% in the second quarter, attributed to scaling but still supported by new product adoption and AI-driven consumption [4]. - Estimates for fiscal years 2026 through 2028 have been lifted based on an improving outlook [5]. Customer Engagement - Over 4,000 customers utilized Snowflake's AI and machine learning technology weekly in the second quarter, indicating strong engagement [5]. - Net revenue retention is projected to be above 124%, driven by increased customer usage and higher-value renewals [6]. Strategic Developments - The acquisition of Datometry is expected to facilitate faster migration of workloads from legacy data warehouses, enhancing Snowflake's AI-driven migration tools [7]. - A new partnership with Palantir Technologies allows for bidirectional, zero-copy data flows, strengthening Snowflake's position in the federal market [8]. Market Positioning - Snowflake is well-positioned to capture growth in AI-driven enterprise applications as enterprises increasingly adopt its platform [9]. - The company continues to monitor the adoption of new products such as Iceberg Tables, Native Apps, Snowpark Containers, and Streamlit, which are anticipated to accelerate growth in the second half of the fiscal year [8].

Group 1: CrowdStrike - CrowdStrike is experiencing positive momentum with multiple price target hikes from analysts, indicating strong bullish sentiment [1][2][3] - JP Morgan Chase raised its price target to $580 from $500, maintaining an overweight rating, anticipating strong third-quarter results and continued momentum into the next fiscal year [2] - Key Bank also increased its target to $570 from $510, while Wedbush reiterated a price target of $600, highlighting CrowdStrike as the "golden standard of cyber" [3][4] - Analysts believe the revenue estimate of over $1.2 billion for the third quarter is easily beatable due to CrowdStrike's agent security strategy [4] - Year-over-year comparisons show improved performance as CrowdStrike recovers from previous outages, positioning it favorably in the market [5] Group 2: Snowflake - Snowflake's stock has been a strong performer, up over 60% year-to-date, despite a slight decline recently [7] - Rosenblatt raised its price target for Snowflake to $275 from $250, maintaining a buy rating ahead of its earnings report [8] - The forecast for Q3 product revenue growth is 27%, down from 32%, driven by better-than-expected cloud service provider results and strong customer feedback [9] - Analysts see AI adoption as a significant growth engine for Snowflake, with over 4,000 customers using its platform weekly, indicating strong customer retention [9] Group 3: Salesforce - Oppenheimer has cut its price target for Salesforce to $300 from $315, citing lower software group multiples, but maintains an overweight rating [12] - Analysts believe Salesforce is undervalued and has financial strength, despite challenges with its AI initiative, Agent Force [12][13] - The company is viewed as being in transition towards its next-generation AI platform, which analysts expect will be successful in the ongoing AI transition [13]

Earnings season is starting to wind down but we still have some big names due to report Q3 numbers. This week, we have Salesforce (CRM), Crowdstrike (CRWD), Marvell Technologies (MRVL), Snowflake (SNOW), Dollar Tree (DLTR) and Dollar General (DG) all set to report. More News from Barchart Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases t ...

Core Viewpoint - Snowflake Inc. (NYSE:SNOW) is recognized as one of the top-performing AI stocks as it heads into 2026, with multiple analysts raising their price targets and maintaining positive ratings [1][3]. Group 1: Analyst Ratings and Price Targets - Jefferies increased its price target for Snowflake from $270 to $300 while maintaining a Buy rating [1]. - Bank of America raised its price target from $280 to $310, reiterating a Buy rating [3]. - RBC Capital increased its price target from $275 to $300 and maintained an Outperform rating [3]. Group 2: Demand and Growth Drivers - Strong demand for Snowflake's services is supported by a proprietary survey conducted by Jefferies, highlighting artificial intelligence as a key growth driver [2]. - Positive indicators for Snowflake's growth include pipeline strength and expanding partnerships [2]. Group 3: Market Context - The software sector is experiencing volatility as investors focus on AI winners, with Snowflake positioned favorably within this context [4]. - Recent checks by RBC Capital indicated improved results from cybersecurity vendors, suggesting a positive trend in the software industry [4].

Group 1 - Several high-profile technology companies, including Snowflake and Credo Technology, are set to report earnings in the coming week, indicating a focus on growth in the tech sector [1] - Snowflake's stock has shown resilience, maintaining its position near the 10-week moving average, suggesting strong investor interest [1] - Credo Technology, a player in the fast-growing artificial intelligence sector, is experiencing institutional selling pressure ahead of its earnings report [1] Group 2 - Upcoming earnings reports from American Eagle Outfitters, MongoDB, and CrowdStrike are being closely monitored, highlighting potential shifts in market sentiment [2] - MongoDB is positioning itself to leverage opportunities in artificial intelligence, reflecting a broader trend among database vendors [4] - CrowdStrike is leading several stocks that are nearing buy points, indicating strong market performance and investor interest in cybersecurity solutions [4]

Core Insights - The Q3 earnings season has shown solid performance, with 95% of S&P 500 companies reporting results and an expected 13.4% increase in earnings per share, marking the fourth consecutive quarter of double-digit growth [2][3] Group 1: Earnings Performance - Analysts had initially expected a 7.9% increase in earnings per share for Q3, indicating a significant upward revision in expectations as the quarter progressed [3] - If the anticipated 13.4% earnings growth holds, it represents an acceleration from the 12% growth rate reported in Q2 [2] Group 2: Consumer Sentiment - Recent reports from Abercrombie & Fitch, Dick's Sporting Goods, and Burlington Stores indicate that softening consumer sentiment is affecting purchasing decisions [4] - Upcoming earnings reports from retailers such as Macy's, Dollar Tree, American Eagle Outfitters, and GameStop will provide further insights into consumer behavior as the holiday shopping season approaches [4] Group 3: Upcoming Reports - The first week of December will feature earnings reports from companies including Salesforce, CrowdStrike, MongoDB, Marvell, Okta, C3.ai, and Snowflake, which are expected to highlight ongoing trends in corporate performance [5]

Financial Sector Earnings - The upcoming week features significant earnings reports from major Canadian financial institutions, including Royal Bank of Canada on Wednesday and Toronto Dominion Bank, Bank of Montreal, and Canadian Imperial Bank of Commerce on Thursday [1] - The earnings reports from these banks are expected to provide insights into the Canadian financial sector's performance and outlook [1] Software Sector Earnings - The week is also packed with software earnings reports, with CrowdStrike Holdings Inc. and Marvell Technology Inc. reporting after market close on Tuesday, followed by Salesforce Inc. and Snowflake Inc. on Wednesday [1] - These earnings are anticipated to reflect trends and developments in the software industry, which may influence investor sentiment and market dynamics [1]

Core Viewpoint - The AI trade has been a significant driver in the stock market, but recent volatility has led investors to explore alternative opportunities outside the core AI theme [1][7]. Group 1: Analyst Insights - DA Davidson analyst Gil Luria remains bullish on AI overall but highlights strong potential in smaller tech stocks that are often overlooked [2][6]. - Luria emphasizes the focus on infrastructure software stocks as they are clear beneficiaries of AI usage without the perceived risks associated with application software companies [3][6]. Group 2: Recommended Stocks - Luria identifies three tech stocks: Snowflake, Datadog, and JFrog, which operate in the AI infrastructure and software space [2][4]. - Year-to-date performance for these stocks includes Snowflake at +62%, Datadog at +11%, and JFrog at +113%, with JFrog outperforming its peers and the Magnificent Seven [3][4]. Group 3: Market Dynamics - Luria believes that regardless of how enterprise customers build AI tools, they will require more data lakehouse capacity (Snowflake), more applications and infrastructure for observation (Datadog), and more binary code management (JFrog) [5][6]. - The continued growth of AI will benefit these companies as larger enterprises will always need their services to scale AI tools effectively [6].

Core Insights - Analysts project Snowflake Inc. (SNOW) will report quarterly earnings of $0.31 per share, a 55% increase year over year, with revenues expected to reach $1.18 billion, reflecting a 25.4% increase from the same quarter last year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating analysts' stable outlook [1] - Revenue from product sales is projected to be $1.13 billion, marking a year-over-year increase of 25.4% [4] - Revenue from professional services and other sources is expected to reach $52.70 million, indicating a 26% year-over-year increase [4] Group 2: Customer Metrics - Total customers are projected to reach 12,483, up from 10,618 in the same quarter last year [5] - The number of customers with trailing 12-month product revenue greater than $1 million is expected to be 686, compared to 542 in the same quarter of the previous year [5] Group 3: Profitability Metrics - Non-GAAP Product Gross Profit is anticipated to be $915.73 million, up from $686.90 million in the same quarter last year [6] - GAAP Product Gross Profit is forecasted to reach $798.98 million, compared to $636.66 million in the same quarter last year [6] Group 4: Market Performance - Snowflake shares have decreased by 7.8% in the past month, contrasting with a 0.4% increase in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [6]

Core Insights - The last several years have been challenging for Snowflake (NYSE: SNOW) investors due to a slowdown in the Information Technology sector following the pandemic [1] Company Performance - Snowflake's stock has experienced extraordinary volatility from the beginning of 2022 to early 2025 [1] Investor Sentiment - The article reflects a long position in Snowflake shares, indicating a belief in the company's potential despite recent challenges [1]