Snowflake Inc. reports first-quarter results after the close Wednesday. Investors are eager to see whether AI products can drive accelerating growth.
Analysts expect earnings of 32 cents per share on revenue of $1.32 billion. This represents year-over-year growth of 33.5% and 26.9%, respectively. Revenue is up sequentially from $1.28 billion last quarter.
44 of 51 analysts rate the stock a Buy. The consensus price target is $229.14, implying 29% upside. EPS estimates have edged up 0.47% over 60 days, while revenue estimates are flat.
Several analysts adjusted targets recently. TD Cowen maintained Buy with a $255 target. Benchmark raised its target to $200 from $190, citing strong cloud consumption.
What Investors Are Watching
The earnings call will focus on AI traction, consumption velocity, and growth trajectory. The company has over 9,000 AI accounts.
Last quarter, Snowflake beat estimates on both earnings and revenue. EPS of 34 cents topped forecasts by 25.93%. Results will set the stage for Analyst Day on June 2.
Strong results could validate AI positioning. Weak results might raise questions about competition from Databricks.
