Snowflake Beats Q4 Estimates, Lifts Full-Year Outlook: Analysts See AI Boosting Growth

Core Viewpoint - Snowflake Inc reported strong fourth-quarter results, leading to a rise in its stock price amid a positive earnings season [1] Group 1: Financial Performance - Total revenue for the fourth quarter increased by 27% year-on-year to $987 million, with Product revenue reaching $943 million, up 28% [2] - Management's fiscal 2026 guidance indicates a growth rate approximately 2 percentage points higher than the previous year's guidance [3] - Snowflake's first-quarter guidance suggests Product revenue growth of 21%-22%, estimating between $955 million to $960 million, and a full-year revenue of $4.280 billion, implying a 24% growth, which exceeds consensus estimates of $4.234 billion [5] Group 2: Analyst Ratings and Insights - Analyst Mark Murphy from JPMorgan maintained an Overweight rating and raised the price target from $185 to $210, noting that the fourth-quarter beat was less broad-based compared to the previous quarter [2] - Analyst Mike Cikos from Needham maintained a Buy rating and increased the price target from $200 to $215, highlighting strong full-year guidance [5] - Analyst Blair Abernethy from Rosenblatt Securities reaffirmed a Buy rating with a price target of $205, citing revenue beats and operational efficiency improvements that raised margins to around 9% [7] Group 3: Growth Drivers and Market Trends - The acceleration in year-on-year growth is expected to be driven by Data Engineering, Snowpark, and AI/ML initiatives [6] - Several large customers have exceeded their commitments, indicating a potential tailwind for bookings [6] - New product launches and improved consumption levels are contributing to management's higher-than-expected full-year guidance [8]