Snowflake (SNOW) Stock: What Wall Street Expects from Earnings Today

TLDR

• SNOW stock closed at $177.60 on Tuesday, down roughly 31% over the past six months.
• Options data points to a potential 12% price swing in either direction after Wednesday’s earnings release.
• Wall Street expects Q1 revenue of $1.3 billion, up 27% year-over-year, with adjusted EPS of $0.32.
• Snowflake argues its data warehousing services become more valuable — not less — as AI agents replace human workers.
• A shareholder class action lawsuit filed in late April adds legal uncertainty heading into the print.

Snowflake reports its fiscal first-quarter 2027 earnings after Wednesday’s market close, and investors are bracing for a volatile reaction.

Snowflake Inc., SNOW

SNOW stock closed at $177.60 on Tuesday. Options markets are pricing in a 12% move in either direction following the report — that’s a big swing for a stock that has already had a rough run.

The stock is down about 31% over the past six months, even as the S&P 500 climbed 10% over the same stretch. That said, SNOW has bounced hard off its April 10 low, up 47% from that trough.

Wall Street is looking for adjusted earnings per share of $0.32, up from $0.24 a year ago. Revenue consensus sits at $1.3 billion, which would be a 27% increase year-over-year. On a GAAP basis, Snowflake still runs at a loss — the company reported a $1.33 billion net loss for the full fiscal year.

AI Agents Could Be a Tailwind, Not a Threat

The broader software sector has been under pressure as investors worry that AI agents will eat into traditional software revenue. The logic: if companies can use AI to build their own tools, they may stop paying for subscriptions.

Snowflake’s pitch is different. It already runs on a consumption-based model rather than per-user fees, which means it isn’t directly exposed to that threat in the same way.

More importantly, the company argues that AI agents still need clean, governed data to function. As agents take on more analytical workloads, data consumption could actually rise — which would benefit Snowflake’s model directly.

Snowflake has also been building its own AI tools. Its Cortex Code and Snowflake Intelligence platforms target large enterprises running autonomous AI systems. The company recently agreed to acquire AI observability platform Observe. In Q3, Snowflake said AI-related revenue had hit a $100 million annual run rate.

Analysts Cut Targets but Stay Bullish

Price target cuts have been rolling in ahead of the print. Cantor Fitzgerald’s Thomas Blakey trimmed his target to $225 from $250, citing caution among enterprise cloud buyers.

TD Cowen’s Derrick Wood is the most bullish on the Street, holding a $255 target. Benchmark and KeyBanc both sit at $200. The average consensus target is $233 — implying roughly 26% upside from current levels.

SNOW carries a Strong Buy consensus from Wall Street, based on 20 Buy ratings and one Hold over the last three months.

One overhang investors are watching: a shareholder class action lawsuit filed in late April alleges the company misrepresented its consumption revenue trends. That litigation is unresolved heading into tonight’s report.

The previous quarter saw product revenue of $1.23 billion. Investors will be watching closely to see if that number moves higher.

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