Analyst Upside

AU · rank #6 · 2026-07-24

SNOW

NYSE · $93.20B (USD)

SignalStrong Buy5.5strength 5.5 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Composite score
Z-score blend of all factors below.
2.114
EPS revisions (30d)
Change in consensus EPS estimate over the past 30 days ($/share).
+$0.01
Net revisions (30d)
Number of analysts revising upward minus downward.
43
Insider signal (90d)
$0 across 0 unique buyers.
-0.121
Analyst upside
Consensus target $293.97
+10.9%
Momentum acceleration
3-month minus 12-month momentum.
+83.12%
Analyst rating
5 = Strong Buy, 1 = Strong Sell.
4.51
Gross margin TTM+67.1%
52w high$284.99
Market cap (USD)$93.20B

The AI research card

Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.

Summary

Snowflake is a cloud-agnostic AI Data Cloud platform generating $1.39B in quarterly revenue with 126% net revenue retention, $9.21B in remaining performance obligations, and 34% YoY product revenue growth driven by expanding AI and analytics workloads.

Rationale

The analyst_upside signal is reinforced by a 97.8% revision agreement rate across 50 analysts, a 21.95% earnings surprise, raised FY2027 guidance, and momentum acceleration of 83%, all pointing to a consensus view that SNOW's AI-driven consumption growth is being systematically underestimated.

Material risks

  • 1Hyperscale cloud providers (AWS, Azure, GCP) are actively building competing native data and AI services that could commoditize Snowflake's core warehousing layer, and the $6B AWS infrastructure commitment deepens cloud concentration risk while signaling Snowflake's dependence on the very competitor it faces.
  • 2High stock-based compensation (~29% of revenue, ~$403M in Q1 alone) suppresses GAAP profitability and inflates non-GAAP metrics, creating downside risk to consensus targets if investors reprice SBC-adjusted free cash flow as growth moderates toward the guided 31% rate.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Error