Snowflake can compound durable core consumption with AI workloads, using its governed data platform to capture a larger share of enterprise AI spending.
The growth opportunity is real, but adoption uncertainty, intensifying competition, and premium expectations leave Snowflake vulnerable to estimate cuts and multiple compression.
The company is identified as the strongest next-tier infrastructure beneficiary in the context of rising AI wallet share and software budgets.
MSFT dominates across cloud AI, infrastructure software and Copilot, while SNOW is the strongest next-tier infrastructure beneficiary and CRWD/PANW benefit from cybersecurity budgets +6.9% and AI security leading incremental spend. The key risk is ROI: only...
ISI was positive on the company's CoCo checks.
The company's stock showed weakness, with ISI noting that spending controls are becoming more common and flagging tougher comparisons heading into next year.
Jefferies' customer/partner checks suggest CoCo can boost Snowflake consumption by 10–30% near term through faster builds, incremental agent compute, and storage, while reinforcing Snowflake's moat in governed enterprise data/context and high switching costs.
Wells Fargo became more constructive on Snowflake after a management call, as AI revenue broadens beyond CoCo into AI Gateway, AI functions, and training, while core trends remain stable.
CoCo still drives approximately 11% higher core consumption after adoption, with the larger opportunity stemming from broader penetration rather than increased spend per user.
Management sees a constructive 3Q setup due to easier comparisons and notes that investor focus has increasingly shifted toward FY28 growth rather than the size of the near-term beat.
Demand is healthy but not yet inflecting, with CoCo acting more as an upside lever than a new-logo driver currently.
CoWork adoption remains early and still lacks a strong business-user interface.
Migration velocity and core workload growth are expected to sustain product revenue growth above 30%.
Software: BNP reseller survey rebounds; ORCL + GenAI stand out, MSFT/SNOW also strong
ORCL was the biggest positive surprise, with ORCL DB at AWS/Azure jumping into the top-3 demanded products and OCI/Fusion also improving; M365 Copilot rose to Microsoft’s #2 product from #5, while SNOW continued to outperform Databricks.
Adoption of the company's AI coding assistant is slower than expected due to high pricing and competition.
BNP reiterates OP on ORCL/MSFT/SNOW and remains cautious on ADBE/IBM/ZM, which ranked among the weakest demand trends.
AI consumption is proving more durable as workloads transition from testing to production, with CoCo and broader AI adoption driving incremental usage across new and existing customers.
The company's guidance methodology is unchanged, but limited history on newer AI products creates built-in conservatism, supporting continued revenue upside as forecasting improves.
Competitive positioning remains intact against hyperscalers and Databricks.
The CEO sees the company evolving from a trusted data platform into a broader AI control plane, with CoCo showing strong adoption momentum and Cowork expanding reach to business users.
Management is explicitly prioritizing revenue acceleration from AI while maintaining discipline on monetization and resource allocation, with margins expected to improve as products scale.
KeyBanc's checks indicate that over 40% of customers are tracking above plan, an increase from the previous quarter, and CoCo adoption is significantly increasing among active users.
AI demand is broadening beyond CoCo into Cowork, AI Gateway, agents, and early post-training use cases, with ~9.1K accounts using AI exiting 2Q.
Management is seeing rising interest in open-weight models/model routing and post-training on proprietary Snowflake data.
Management pushed back on concerns that AI is merely pulling forward consumption, arguing optimization risk is smaller than feared and the LLM + enterprise-data flywheel supports durable growth.
The SVP of Sales for Americas announced their departure to OpenAI, which could signal a loss of key leadership.
The stock is categorized as a Tier 1 AI winner in software, outperforming as investors position ahead of industry events.
The company showed strength in cloud consumption.
The stock is a top-favored name in software.
NET +3% continues to hit new highs and has quickly slotted itself behind SNOW +2% as a top 3 favored name in sw right now
CFO Brian Robins stated that CoCo adopters show an 11% uplift in core consumption, and AI-assisted migrations now take about six months versus 10 to 11.
The company has canceled all its internal BI contracts and the GAAP-profitability commitment for Q4 next year constrains nothing, as they are spending as much as they want.
ORCL -3.5% and DOCN -2.5% the big losers caught in the AI sell off, while SNOW +1% TWLO +2% & MSFT +2% underperformed given they are 3 of the most longed stocks in sw and preference was for laggards today.
The stock underperformed, despite a slight gain, due to its status as one of the most longed stocks in software, with preference shifting to laggards.
The company's growth raise is viewed as structural, driven by increased consumption of its core platform by new product adopters.
CEO Sridhar Ramaswamy and CFO Brian Robins stated that AI has significantly reduced migration costs and time, with a large manufacturer planning a Teradata migration in under three quarters, indicating increased efficiency.
System integrators are moving to fixed-cost guaranteed outcomes, which is why consumption ramp curves are becoming steeper, suggesting a more predictable and accelerated adoption.
Snowflake buys bulk capacity from OpenAI and Anthropic and sells CoWork first, indicating a strategic approach to leveraging AI partnerships.
The company would willingly accept gross-margin dilution for an acceleration, signaling a focus on growth over short-term margin preservation.
Streaming freshness is at 2-3 seconds with a target near 500 milliseconds, indicating a commitment to improving real-time data capabilities.
The CEO drew a hard line on inference, calling blind reselling of undifferentiated capacity 'fake news,' suggesting a critical view of certain market practices.
The CEO conceded that the low-latency criticism is legitimate, acknowledging a current weakness in the platform.
The stock experienced weakness across the board, indicating a broad-based decline in the software sector.
Bulls have high expectations for the upcoming quarter, requiring at least 36% year-over-year product growth for Q2 and a 31-32% guide for Q3 to maintain the acceleration narrative.
Clev is reportedly raising numbers due to the 'CoCo effect' and ramping AI usage.
Partner checks remain strong, with CoCo materially shortening migration timelines and driving broader customer modernization, particularly in financial services.
A ~4%+ F2Q Product revenue beat and at least a ~2pt FY27 raise are expected, with AI potentially contributing ~7pts of FY27 Product growth and helping reaccelerate growth into the high-30s.
The company's 2Q customer survey shows continued healthy consumption, with 60% of respondents migrating more data for AI workloads and over half building internal AI agents on the platform.
AI agents are starting to translate into incremental spend, with most active users reporting a 0–25% uplift, and customers expect migrations to contribute more meaningfully over the next year, supporting durable long-term growth as AI shifts from experimentation to production.
More positive checks from the sell side indicate expectations are creeping up ahead of earnings.
Early estimates suggest approximately 36–37% growth for the July quarter, around 38% for October, and 40% exiting in the January quarter.
Guggenheim's partner checks were broadly positive, with legacy migrations accelerating, longer-term deals improving, and CoCo acting as a meaningful migration catalyst, while early inference workloads are also emerging.
The analyst sees F2Q Product revenue beating Street by approximately 3% and views 3%+ as the minimum needed given valuation, with enough 2H momentum to support another beat/raise even as growth comps get tougher.
Guggenheim remains Neutral, noting strong execution appears increasingly reflected in the stock.
ISI also sees the new enterprise GTM motion gaining traction, with >$1M ARR customers +26% y/y, and views MDB’s discount to SNOW/DDOG as leaving room for a rerating.
Morgan Stanley's checks were constructive on the core business, with one partner raising its second-half outlook.
The firm expects approximately 34% Q2 Product growth, about 3 percentage points above guidance despite a tougher comparison.
FY27 Product growth guidance is expected to be raised to 32–33% from 30.6%.
Cortex Code is showing the clearest incremental adoption, indicating strong performance in a key product area.
Morgan Stanley remains Overweight and would buy on weakness.
AI contribution was mixed, and Databricks remains a significant competitive watch item.
Expectations are elevated, with shares up over 80% since Q1 and trading at approximately 67x CY27 FCF, setting a high bar for results.
Checks with enterprise partners and customers were broadly strong, with most seeing accelerating Snowflake spend and continued momentum in Cortex Code/Coco adoption as AI applications increase the importance of the underlying data layer.
Despite demanding investor growth expectations and the stock's year-to-date performance, the firm believes these targets are achievable.
Competition remains the main watch item, with Databricks standing out as a share gainer.
NET -2%/SNOW -2%… MSFT +25bps decent action.
Partner checks show stable core demand and an improving pipeline, with approximately 90% of partners at or above plan, and CoCo/AI contributing an estimated 7 points of growth in 2026.
The company still has a solid multi-year story around data cloud and AI.
The near-term setup is tougher after the stock’s run, with expectations now around 36% F2Q product growth and 32% F3Q.
Databricks remains a key competitive watch item, with faster growth and strong partner traction.
The company's valuation leaves less room for execution misses.
Evercore ISI reiterated Outperform and raised its price target to $360 from $280, as partner checks indicate another solid beat-and-raise quarter despite high expectations.
73% of partners see business improving, 66% report stronger $1M+ ARR pipelines, and CoCo adoption is becoming measurable, with 27% of partners seeing >10% consumption uplift and 47% seeing 1%–10%.
Evercore ISI expects a roughly 300–400bp product revenue beat, and Cortex AI, Cortex Analyst, and broader data-platform demand are supporting higher estimates and multiple expansion.
The stock continues to grind to 52-week highs as ISI raised its price target, citing positive checks with partners.
BTIG reiterated a Buy rating and raised its price target to $340 from $325, citing partner checks that indicate broad-based demand strength and 25%–30% growth across major channels, with its largest GSI expecting 27%–29% growth in 2H.
Cortex Code, Snowpark, and Unistore are strengthening SNOW's AI narrative and narrowing the competitive gap with Databricks, while cost concerns have largely faded.
BTIG sees upside to F2Q product revenue growth of 33.5% versus Street expectations of 30.0%, and believes a strong earnings print could support further multiple expansion despite elevated expectations.
Cloud consumption stocks, including SNOW, continued to perform well, reaching new all-time highs.
Cloud consumption continues to act well: SNOW +5% to new all-time highs; MDB +6% as I’m hearing intra q checks sound better.
AI agents are driving increased token consumption, and the company offers rare AI growth potential without the heavy capital expenditure burden faced by other AI beneficiaries.
Wells Fargo raises its price target to $500 from $320, applying a 23x CY27 multiple versus 14.5x previously, and argues SNOW deserves to trade closer to NET and CRWD if product revenue growth exits FY27 in the mid-to high-30% range. Wells Fargo says AI agen...
Wells Fargo became more constructive after management meetings, noting AI-driven demand supporting durable infrastructure software momentum.
Management described broad-based strength in the first quarter across core consumption, direct CoCo inference revenue, and indirect data-creation benefits.
CoCo guidance may be conservative given the rapid customer adoption of Cortex Code and its positive impact on consumption.
SNOW/MDB: Wells Fargo Turns Incrementally Positive After Management Meetings
The stock continues to be a favored hiding place for software investors.
SNOW +3% / DDOG +4% continue to be two favorite places for sw investors to
The stock was holding up well.
The company is identified as the top infrastructure pick in Barclays' investor survey.
Accelerating revenue growth is seen as the clearest catalyst to improve software sentiment.
Modestly increased positioning suggests investors remain cautious but may have already reduced underweights, creating a more favorable stock-picking setup.
Software: Barclays Survey Shows NOW and SNOW as Favorites, With Growth Reacceleration the Key Catalyst
The stock held up relatively well, indicating resilience among cloud consumption names.
Cloud consumption names held up ok with MDB/SNOW down less than 1% and DDOG +1.5%
Hyperscaler AI capex should continue expanding, supporting "token path" winners.
The company is a vendor alongside Pure Storage in the enterprise data stack, benefiting from Pure's new Data Intelligence and Data Stream offerings.
BNP came away from Databricks’ investor event more constructive on Snowflake, arguing that accelerating enterprise AI adoption is expanding demand for modern data platforms rather than creating a winner-take-all market.
BNP believes Snowflake’s superior free-cash-flow profile, improving profitability, and materially lower valuation compared to Databricks mean investors are underappreciating its ability to benefit from the same AI-driven data platform tailwinds.
The stock showed slight outperformance, being down only modestly, due to positive sell-side mentions.
Some slight outperformance from SNOW/DDOG only down 1-2% on some positive sell side mentions while cyber names PANW/CRWD finished in the green.
Cloud consumption is strong, indicating healthy demand for the company's services.
Cloud consumption strong: SNOW/MDB +3-4% while DDOG +1.4%
The company outperformed within the software sector, specifically in cloud consumption.
In Tech, Semis +8% led the way higher with SOX crossing back above ST moving averages. Despite the index still being 3-4% below its highs, we’re already seeing some individual names/themes breakout: Semicap continues its strength with names like LRCX, AMAT...
BofA identifies the company as one of the 'Fab Five' infrastructure software names best positioned for 2H outperformance, benefiting from strong execution, AI tailwinds, differentiated products, and improving go-to-market effectiveness.
The company delivered better-than-expected results in 1Q, with AI increasingly acting as a growth accelerator.
BofA notes accelerating adoption at the company.
BofA highlighted DDOG, FROG, MDB, SNOW, and TWLO as its preferred infrastructure software names for 2H26, arguing all five are benefiting from the combination of strong execution, AI tailwinds, differentiated products, and improving go-to-market effectiveness.
The firm noted each company delivered better-than-expected results in 1Q, with AI increasingly becoming a growth accelerator rather than a future opportunity. BofA is particularly constructive on DDOG’s AI business, accelerating adoption at SNOW, AI-driven...
Wells Fargo remains constructive on SNOW, arguing the company is emerging as one of the clearest enterprise AI beneficiaries. Strong early traction for CoCo and CoWork is highlighted, with customer checks suggesting CoCo is accelerating migrations, improving developer productivity, and increasing workload consumption. Continued strength among large customers is noted, with management believing spending by top accounts can continue expanding significantly over time. While adoption of Cortex AI Suite remains early, growing evidence suggests AI tools are broadening Snowflake’s use cases and supporting sustained 25%+ revenue growth, improved profitability, and a narrowing valuation gap versus DDOG.
Coco checks continue to be positive, with recent confirmation from Wells Fargo.
Stifel’s partner and customer checks at Snowflake Summit reinforced its view that CoCo and CoWork are driving meaningful adoption and helping accelerate Redshift and Teradata migrations, while improving Snowflake’s competitive positioning versus Databricks. The firm highlighted stronger-than-expected new-logo activity, broader adoption of Snowpark, data engineering, and Openflow among new customers, and growing evidence that Snowflake is closing the AI/ML gap with Databricks. While new-product upsell within the installed base remains somewhat slower, Stifel believes CoCo is helping drive expansion and that OSI could emerge as an underappreciated catalyst for cross-platform AI workloads. The firm’s takeaway is that CoCo, CoWork, and newer product contributions support sustained 25%+ revenue growth with improving profitability.
CoCo checks across the sell-side following their summit continue to come back very positive.
The company is increasingly positioning itself as the agentic AI control plane for the enterprise.
Strong traction for CoCo and CoWork indicates that AI products are accelerating migrations, increasing consumption, and helping customers move from experimentation to production faster.
Improving operating metrics include faster sales cycles, expanding use cases, stronger customer acquisition, and a reduction in time-to-value.
The company is successfully shifting from a data platform to a broader AI workflow and orchestration platform, supporting sustained growth and a path to GAAP profitability by FY28.
Increased confidence in the company's AI monetization story is driven by rapid adoption of CoCo and improving go-to-market execution.
CoCo has become materially more reliable and outperforms third-party coding agents on Snowflake-native workflows, particularly text-to-SQL and governed enterprise data use cases.
Context and governance are becoming key differentiators in enterprise AI, positioning the company favorably as more agents move into production.
Improving sales productivity, faster migrations, and a clearer path to GAAP profitability by FY28 are observed.
Deutsche Bank raised its price target to $300 from $250, becoming more constructive on both growth durability and AI monetization after Snowflake Summit.
Rapid adoption of CoCo and CoWork is reducing friction, accelerating migrations, and driving incremental consumption across the platform.
Channel checks suggest AI-native workloads are increasingly contributing to usage growth, while migrations remain robust and product innovation continues to accelerate.
Improving profitability is noted, with management guiding to GAAP profitability by FY28 and benefiting from stronger productivity, slower hiring growth, and operating leverage.
Snowflake’s combination of data, governance, interoperability, and AI orchestration positions it well as enterprises move from AI experimentation to production.
In Tech, we have a busy week coming up with Earnings from AVGO, CRWD, CRDO, HPE, GTLB, PANW, CIEN, DOCU and more. Computex continues through the week with keynotes INTC’s Lip Bu Tan, and MRVL CEO. BAML’s and ISI’s TMT conferences start Tuesday as well as th...
The company's CoCo performance and management's commentary suggested that purpose-built, domain-specific agents can compete with general-purpose LLMs, providing a positive read-through for the broader software group.
The company's earnings print landed with significant force, shifting the burden of proof for the software bear case and suggesting AI could be a near-term growth accelerator.
The stock was up double digits, indicating strong investor interest.
The Adobe, Zomato, ElevenLabs, and frontier-lab references create a narrative that MDB may benefit later than SNOW/DDOG, but potentially with a durable and high-value workload stream once customer-facing agentic apps move into production.
SNOW/DDOG-style AI revenue acceleration may appear earlier in data warehousing, analytics, observability, or AI-native infrastructure, while MDB’s upside depends on AI apps moving into production and needing persistent operational data.
The company's AI product, CoCo, is driving a flywheel effect by generating direct revenue, accelerating data app development, and increasing legacy migrations to the core platform.
SNOW's role as a governed enterprise data and AI control plane provides a durable position in the AI stack, supported by strong partnerships with AWS, OpenAI, and SAP.
Impt because enterprise AI is about making AI work securely against governed data, workflows, apps and permissions. The strong AWS, OpenAI and SAP partnerships also reduce the fear that hyperscalers will simply squeeze SNOW out.
The company's recent earnings report was stellar, contributing to a significant positive shift in sentiment for the software sector.
It started with Cyber and DDOG ( and some names like U) at first as both hit new highs while the rest of the space lagged, then ORCL got the AI bid, moved onto to MDB/SNOW getting some love (which is now in full force after SNOW last night and MDB this even...
There is significant extrapolation risk because the company is basing full-year guidance on only one quarter of observed usage for its new CoCo product.
Increased competition across data warehousing, AI, and governance from hyperscalers and other platforms threatens SNOW's market position.
Positioning here had been on the lighter side with many favoring DDOG, and even MDB as of late, so the big move capturing some of that lighter sentiment this morning. We think path of least resistance likely higher here as SNOW still 15% below 2025 lows.
The company is benefiting from strong spending trends in Data/Infra Apps, Cyber, and Dev Tools, as CIOs increasingly view data quality/security as the biggest AI scaling bottlenecks.
Wells also noted CIOs increasingly view data quality/security as the biggest AI scaling bottlenecks, supporting continued spending toward names like $SNOW, $CRWD, and $PANW, while customer-service seat counts appear most at risk from AI automation.
The company reported stellar quarterly results with Product revenue growing 34% year-over-year, which was the highest growth since Q1 2025 and the biggest product revenue beat since then, exceeding expectations closer to 30%.
The guidance implies 30% year-over-year growth at the high end, surpassing expectations of 26%, despite facing a 5 percentage points tougher comparison.
Assuming a similar beat, the company could achieve closer to 33-34% growth, exciting bulls about mid-30s growth, with some even anticipating mid to high 30s product revenue growth in the second half of the calendar year.
The company raised its full-year margin guidance to 13.5% from 12.5%, which helps alleviate concerns regarding Cortex headwinds.
The company is striking a $6 billion deal with Amazon for Graviton Chips.
MDB -4.5% following through on the negative Cleveland note yesterday although getting bought up following SNOW…this also caught my eye:
Cleveland is positive on the company, indicating that Q1 finished ahead due to accelerated AI spend.
Funda.ai's partner checks suggest Cortex Code adoption is accelerating rapidly and becoming a meaningful incremental growth driver, with some partners already seeing it contribute significantly to consumption and potentially reaching higher percentages over time.
Multiple partners described Cortex Code as the 'fastest-growing product in Snowflake history,' highlighting strong differentiation around native Snowflake context awareness, SQL/data pipeline automation, governance/RBAC integration, and lower-latency execution.
Agentic AI workloads are increasingly driving incremental compute/warehouse consumption, and AI labs like OpenAI and Anthropic are becoming major customers as RL/mid-training workloads scale.
Checks from two firms were positive, noting a better Q1 and improved Cortex checks.
SNOW +3% / MDB -6%: tale of two 3p checks. Clev and FundaAI were positive on SNOW calling out a better Q1 and better Cortex checks while Clev was mixed on MDB saying Q1 feedback mixed with strong cloud dev vs. competition (Post-gres)/reorg disruptions/uncer...
Positive customer checks indicate rising adoption of Cortex, making monetization more tangible.
SNOW +4% as UBS had positive checks around Cortex code, saying most customers confirming rising adoption. Karl thinks bull case around Cortex monetization is becoming more tangible. Key debate on stock around Q2 guide given tough compares going forward and...
Concerns persist regarding tough upcoming comparisons and the token-billing model.
Channel checks for Cortex Code were broadly constructive, with most customers confirming rising adoption and increasing spend tied to Snowflake's AI offerings.
The bull case around Cortex monetization is becoming more tangible.
The company maintains a constructive longer-term view on Snowflake's AI positioning.
UBS had positive checks regarding Cortex code, with most customers confirming rising adoption, making the bull case around Cortex monetization more tangible.
SNOW +4% as UBS had positive checks around Cortex code, saying most customers confirming rising adoption. Karl thinks bull case around Cortex monetization is becoming more tangible. Key debate on stock around Q2 guide given tough compares going forward and...
Current FY27 guidance appears to be based primarily on existing consumption trends rather than significant upside from Cortex.
Second-quarter guidance is a key investor debate due to tougher comparisons and ongoing concerns about token-billing and FinOps budget pressure.
Key debates on the stock revolve around the Q2 guide due to tough comparisons and ongoing concerns about token-billing.
The company is entering F1Q27 with healthy momentum across cloud, data, and AI workloads.
The firm expects Snowflake to comfortably exceed consensus on product revenue and margins, supported by strong hyperscaler/cloud consumption trends and accelerating adoption of Cortex Code, Cortex Analyst, and Observe.
The company remains well positioned to sustain approximately 30% product revenue growth through FY27 as AI workload adoption broadens.
The company continues to gain strategic relevance versus Databricks among many enterprise customers.
Core consumption trends into F1Q remain constructive.
April consumption trends remained healthy and in line with expectations.
Recent surveys were mixed, with April consumption trends remaining healthy/in-line but forward spending intentions deteriorating meaningfully.
The firm flagged weaker next-twelve-month partner growth expectations, potential F2Q guide risk (approximately 24% vs. Street 26%), and softer-than-expected Cortex Code adoption data compared to management commentary.
Forward spending intentions deteriorated significantly, with weaker near-term partner growth expectations and potential risk to Q2 guidance.
Investors are increasingly concerned about the impact of AI on the company.
UBS continues to favor AI/data infrastructure beneficiaries like Snowflake, arguing “build vs buy” dynamics and internal AI application development are creating additional structural pressure on broader SaaS spending.
The stock is finally experiencing a catch-up trade, suggesting it is gaining ground relative to its peers.
Deutsche Bank believes Snowflake fundamentals remain constructive into F1Q27, supported by healthy cloud consumption, improving large-deal momentum, and accelerating CSP workloads, reiterating Buy and a $230 price target.
The firm highlights growing traction for Cortex Code and Snowflake Intelligence, with early adopters reportedly increasing consumption meaningfully post-rollout.
Deutsche Bank believes improving enterprise AI workload trends support a more constructive FY27 setup.
Citi's partner checks remain constructive on Snowflake, with continued ramp in Cortex Code and Snowflake Intelligence usage supporting improving AI monetization trends.
The firm highlights strong customer engagement/ROI around AI workloads and expects F1Q beat cadence to normalize closer to historical levels.
Citi still sees some risk to F2Q guidance given tougher compares and lingering concerns around AI coding disruption/CRO transition dynamics, maintaining Buy while trimming its price target to $260.
Current backward-looking metrics like product revenue and backlog remain healthy.
Generative AI poses a structural threat to Snowflake's long-term terminal value, particularly as it loses developer share.
Generative AI is viewed as creating terminal value risk for the platform.
The company is losing market share within the critical Python developer ecosystem.
The stock experienced a negative movement due to a Redburn note highlighting GenAI creating terminal value risk, specifically Snowflake losing share within the Python developer ecosystem, which is an early warning sign for future compute consumption and platform relevance.
Checks indicate healthy consumption trends, strong large-deal activity, and accelerating demand late in the quarter, supporting modest upside to 1QFY27 results and guidance.
The company is gaining traction with Cortex, Snowflake Intelligence, and Cortex Code, alongside increasing AI workloads layered onto core analytics use cases, with CoCo consumption also ramping.
Despite intense competition from Databricks, the company continues to gain platform relevance through easier AI deployment and broader data/analytics consolidation.
The stock rose in sympathy with positive news surrounding MDB.
Good note worth a read…SNOW +30bps in sympathy. Hear MDB pitched long to me more than SNOW these days.
The print brought renewed bullishness to cloud consumption names, with investors more confident that a beat would be rewarded.
Print brough a renewed bullishness to cloud consumption names where near-term checks continue to be strong with investors more confident that a beat has a better chance of being rewarded: SNOW/MDB +10%
The stock saw a positive bid, indicating strong performance among cloud consumption names.
Potential AI-driven disruption is viewed as manageable based on checks with customers and partners, with most workloads still favoring Snowflake for scale and enterprise use cases.
Cortex Code is highlighted as a potential offset, enabling Claude-based workflows on Snowflake data and driving incremental consumption into FY27.
Valuation (~8.6x rev / 36x FCF) is considered reasonable given sustained 20–30% growth and limited near-term disruption impact.
The company faces potential AI-driven disruption (SQL-based analysis, ETL compression, lower compute demand).
Citi continues to prefer the company within data/infra and hyperscalers.
Citi continues to prefer data/infra and hyperscalers (MDB, SNOW, PLTR, MSFT) and within apps still likes SHOP, NOW, HUBS, BRZE, KVYO for stronger organic growth, AI cycles, and SMB/eCommerce exposure.
Channel checks indicate Cortex Code is driving meaningful productivity gains for customers, with one saving 500 hours in 20 days and another compressing a 3-week project into 3 hours.
The firm sees a two-pronged growth tailwind from faster migrations and increased query consumption as users shift to executing multi-step actions on data.
Cortex Code could add 1-2 percentage points to growth in FY27-28, with cost-conscious customers noting better token cost control compared to using Claude Code.
The company outperformed, with its CEO highlighting strong returns on AI investment across sales demos, customer support, and system reliability, significantly reducing problem-solving time.
Wells Fargo suggested that Cortex Code could add 1-2 percentage points of incremental growth, citing positive channel checks showing meaningful productivity gains, including significant time and cost savings for customers.
The company was a positive surprise, with commits accelerating due to early adoption of Cortex AI.
The company reaffirmed its guidance for Q127 and FY27 despite the CRO's departure.
The CRO left in a somewhat surprising move, which negatively impacted the stock.
ORCL +6% nice bid ORCL +6% SNOW -2% as CRO left in a somewhat surprising move, although not sure if related to the instagram slip a few months ago. Along with announcement, SNOW reaffirmed guide for Q127 and FY27.
Morgan Stanley reiterated Overweight, arguing that Snowflake’s Cortex Code is a strategic play to get data onto the platform faster by automating pipeline builds, shortening migrations, and driving query volumes.
Channel checks point to a broadly healthy demand environment with ~30% YoY partner practice revenue growth, and Cortex Code cut a competitive migration timeline by "4 to 5 months."
Cortex Code and Snowflake Intelligence are complementary, with early internal telemetry showing Cortex Code accelerating Intelligence agent deployments by 4-10x.
An analyst firm was bullish on the company's new "Project SnowWork," which introduces agentic AI capabilities enabling enterprise users to generate and execute workflows end-to-end, expanding accessibility beyond technical users.
Valuation concerns that previously held back cloud consumption names like this one have eased.
Cloud consumption continue to act better: SNOW +2.3%; MDB flat; DDOG +3.5%.
Cloud consumption names strong: MDB +50bps; SNOW +1.3%; DDOG +2.3%.
The lack of follow-through in its stock movement confirmed the struggle of high-valuation stocks to gain traction.
The stock gained in sympathy with DDOG's positive performance.
SNOW +4% /MDB +5.5% in sympathy with DDOG
The stock caught a bid in sympathy with DT's strong performance.
SOFTWARE: Barclays 2026 Outlook Turns Constructive as AI Revenues Emerge; downgrades GTLB DV and SNOW and upgrades DSGX
Barclays downgraded Snowflake to Equal Weight on valuation and competition.
Barclays downgraded Snowflake to Equal Weight and lowered its price target to $250, as the stock's approximately 42% rally in 2025 pushed valuation and investor expectations higher.
Increased competition for new workloads and a tougher setup at the current multiple are key drivers of the downgrade.
These factors create an unfavorable risk-reward for the shares despite a generally improving sector backdrop.
The stock was among the software names that were clipped, including app software, secular growth winners, and consumption names.
ISI's management commentary reinforced that core growth drivers remain intact, with AI acting as an incremental accelerator.
Snowflake emphasized sustained demand from legacy migrations, verticalized, outcome-based go-to-market execution, and strengthening hyperscaler partnerships, balancing growth investment with operating discipline.
MDB / SNOW / WDAY: ISI Bus Tour Takeaways Reinforce Durable Growth, AI as Incremental Tailwind
are at: they of the process CFLT Ek 10%, lmiittiBim, B5x SNOW +6% / DDOG +5% helped by bid to Al names SNOW +6% / DDOG +5 %aFXA Iaaz# FIG +15% continues to squeeze after OAI Dev mention day APP -1.3%: We get northbeam data tomorrow Our friends at EundaAL we...
The coming week is packed with reports that should help fill in some blanks in tech as Q3 gets under way. Expect meaningful updates across a wide spectrum: a clearer picture of hyperscaler capex trajectories (META, MSFT, AMZN), critical reads on the pace an...
Research through 2026-10-23 · 2025-07-28 to 2026-10-23 · 76 source reports.
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Research through 2026-11-03. Artifact validity does not establish factual accuracy or research freshness.