Snowflake Raises Fiscal 2027 Product Revenue Guidance to $6.07 Billion

Snowflake Inc. is drawing heightened investor attention after Zacks Investment Research highlighted sharply rising earnings estimates for the data-warehousing company. For the current quarter, Snowflake is expected to post earnings of $0.60 per share, a change of +71.4% from the year-ago quarter, while the Zacks Consensus Estimate has moved +17.5% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $2.19 points to a change of +75.2% from the prior year, and for the next fiscal year the consensus estimate of $2.84 indicates a change of +29.6%. On revenue, the consensus sales estimate for the current quarter of $1.64 billion indicates a year-over-year change of +35.5%, with current and next fiscal year estimates of $6.29 billion and $8 billion pointing to changes of +34.2% and +27.3%, respectively. In its last reported quarter, Snowflake posted revenues of $1.55 billion, a year-over-year change of +35.1%, and EPS of $0.62 versus $0.35 a year ago, beating the Zacks Consensus revenue estimate of $1.47 billion by +4.91% and the EPS estimate by +37.78%. Citing the size of the recent change in the consensus estimate along with three other earnings-related factors, Zacks rates Snowflake Zacks Rank #2 (Buy), though the stock carries a Zacks Value Style Score of F, indicating it trades at a premium to its peers.

Salesforce's fair value estimate has been lifted from US$241.72 to US$275.87, an uplift of about 14% in the latest analyst model, following the launch of the Koa CRM reasoning model with NVIDIA, the US$3.6b acquisition of AI customer service company Fin, and the AIforce rollout. The updated model raised the revenue growth assumption from 9.78% to 10.08%, kept the net profit margin assumption unchanged at 18.18%, moved the future P/E assumption from 20.21x to 22.23x, and shifted the discount rate from 9.39% to 9.11%. Salesforce also expanded its partnership with Anthropic through the launch of Claudeforce, which embeds Claude as the default AI model across Agentforce, Slack and Data 360, and reported what management described as one of its best fiscal Q2s, with revenue of US$11.35b, 11% year over year growth, and full year 2027 revenue guidance of US$46.1b to US$46.4b. AI products including Agentforce and Data Cloud AI reached almost US$3.9b in annual recurring revenue, with Agentforce annual recurring revenue growing over 240% year over year, while Salesforce recorded a US$2.6b investment gain related to Anthropic and shares rose between 18% and 22% around the results. Analysts remain split, with Canaccord, Guggenheim, Stifel, TD Cowen, Argus, Cantor Fitzgerald, BMO Capital, Mizuho, JPMorgan and Erste Group raising targets as high as US$300, while Morgan Stanley, KeyBanc, CLSA and Phillip Securities cited slower growth and mixed Agentforce feedback, and Wells Fargo and Citi stayed Equal Weight and Neutral.