Snowflake (SNOW) Earnings Preview: What Investors Need to Know Before Wednesday’s Report

Quick Overview

• Q1 FY27 earnings arrive Wednesday, May 27, following the closing bell.
• Analyst consensus projects earnings per share of $0.32 (33.3% year-over-year jump) and revenues near $1.32 billion, reflecting approximately 27% growth.
• Shares have climbed 19.3% in the last month but remain down roughly 22% for 2025, trading at $172.02.
• The options market anticipates approximately 13.52% volatility in either direction post-results.
• Analyst community maintains a Strong Buy rating with a mean target of $224.32, suggesting around 30% potential appreciation.

The cloud data warehouse provider approaches Wednesday’s financial disclosure trading at $172.02 — notably beneath Wall Street’s consensus valuation of $224.32.

Snowflake Inc., SNOW

The enterprise data management specialist will unveil its fiscal first quarter 2027 performance after trading concludes on May 27. The Street anticipates revenues around $1.32 billion, translating to roughly 27% annual expansion.

This projection edges out the 25.7% revenue acceleration Snowflake delivered during the comparable period twelve months earlier.

Per-share earnings are forecast at $0.32, representing a 33.3% improvement versus the prior-year quarter.

During the previous reporting period, the company exceeded expectations with $1.28 billion in revenue, marking 30.1% yearly growth. Snowflake also surpassed projections for billings and EBITDA while onboarding 45 additional enterprise clients spending above $1 million per year. This premium customer segment now totals 733.

Despite recent operational strength, the stock has declined approximately 22% since January. Investor concerns center on margin compression from substantial AI infrastructure spending and uncertainty about how autonomous AI agents might disrupt conventional enterprise software models.

Recent weeks have witnessed a recovery, however, with shares advancing 19.3% over the trailing 30-day period.

Wall Street Analyst Perspectives

TD Cowen analyst Derrick Wood maintained his Buy recommendation alongside a $255 valuation target. His channel checks with ecosystem partners indicate robust quarterly performance, fueled by core data warehouse workloads, competitive customer wins, and accelerating artificial intelligence implementation.

Wood is particularly focused on developments surrounding Cortex Code (CoCo), the company’s AI coding agent, and anticipates more significant upside surprises compared to recent quarters.

Benchmark’s Yi Fu Lee elevated his target to $200 from $190 while retaining a Buy stance. Lee projects Snowflake will “highly likely to comfortably” exceed consensus forecasts for product revenue and operational profitability.

Lee anticipates sustained growth momentum from Snowflake Intelligence, Cortex Code, and Observe — three offerings he identifies as catalyzing AI integration across more than 9,000 customer accounts.

Derivatives Markets Point to Substantial Volatility

Options pricing suggests approximately 13.52% movement potential in either direction following the announcement. This exceeds SNOW’s four-quarter average post-earnings swing of 11.85%.

The analyst community maintains a decidedly optimistic stance. The aggregate rating stands at Strong Buy, comprising 28 Buy recommendations and two Hold ratings. The average target price of $224.32 indicates roughly 30% upside from present trading levels.

Comparable companies in the data infrastructure sector provide encouraging context. DigitalOcean delivered 22.4% revenue expansion last quarter while exceeding forecasts by 3.3%. Commvault posted 13.3% growth and beat estimates by 1.6%.

Market sentiment across the category has been constructive, with peer group equities appreciating approximately 10% on average during the past month.

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