Bond.az - Rosenblatt raised its price target on Snowflake Inc. (NYSE:SNOW) to $285 from $275 while maintaining a Buy rating, following the company’s strong first-quarter earnings.
Snowflake reported Wednesday after market close that product revenue grew 34%, which was 5.5% above Rosenblatt’s estimate. Total revenue reached $1.391 billion, exceeding Rosenblatt’s $1.321 billion estimate and consensus of $1.324 billion by 5.1%.
The net revenue retention rate increased to 126% in the quarter. Operating margin hit 13%, compared to Rosenblatt’s 9% estimate, while product gross margin came in at 75%. Gross profit margin over the last twelve months stands at 67%, though Snowflake remains unprofitable with an EPS of -$3.95.
Snowflake announced an expanded collaboration with AWS through a new $6 billion multi-year agreement to accelerate global enterprise AI adoption. The agreement will leverage Graviton compute and AI services.
The company expects second-quarter product revenue growth of 30%, above Rosenblatt’s prior 25% estimate. Fiscal 2027 guidance increased nearly 3% to 31% growth, including approximately 1% from the Observe acquisition.
