Record performance sparks Wall Street celebration: Snowflake (SNOW.US) surges 16%, major banks collectively raise target prices.

After releasing an unexpectedly strong Q2 FY2027 financial report, the stock price of cloud data platform Snowflake (SNOW.US) surged over 16% on Thursday, prompting Wall Street to collectively raise target prices. Jefferies Financial Group Inc. analyst Brent Thill stated in a report to investors, "CoCo has become a killer AI capability for SNOW, driving product revenue for the second consecutive quarter above expectations by more than 5%, with growth accelerating for the third consecutive quarter and achieving record operating margins. The product revenue growth rate for Q3 is projected to be 37%-38%, with guidance for FY2027 raised by 5 percentage points to 36%, all of which far exceed market expectations. CoCo added over 2,000 accounts quarter-over-quarter, covering over 60% of the installation base just two quarters after its General Availability (GA), and management referred to it as the easiest product to sell in SNOWs history." Snowflake CoCo (also known as Cortex Code) is a data-native AI coding agent designed to simplify and accelerate the data development lifecycle. Jefferies Financial Group Inc. maintained its "Buy" rating and raised the target price from $385 to $430. Similarly, Evercore ISI maintained its "Outperform" rating and raised the target price from $360 to $430. Evercore analyst Kirk Materne noted in a report on Thursday, "Management also pointed out that demand for model selection is a key demand driver, with the underlying motivation being cost optimization; while this seems to be SNOW's competitive advantage rather than a hindrance, as its ability to automatically route to the best model is actually driving incremental demand. Finally, the operating margin is about 15%, well above the guidance of approximately 12.5%, demonstrating management's capability to realize a mid-30% growth rate while also releasing operational leverage." Meanwhile, BTIG reiterated its "Buy" rating and raised its target price from $340 to $424. "Overall, we believe this is yet another outstanding quarter," BTIG analysts Gray Powell and Trevor Rambo stated in their report. "This quarter's product revenue exceeded the midpoint of guidance by $74 million, marking the largest positive surprise relative to guidance in the company's history. Additionally, SNOW product revenue grew by a net $158 million quarter-over-quarter, surpassing the record of $108 million set just last quarter, marking the second consecutive quarter of record dollar growth quarter-over-quarter. AI is driving the urgency to integrate data into the SNOW platform; CoCo and CoWork are gaining broader adoption and monetization, with AI users significantly increasing their consumption on the core platform." J.P. Morgan reiterated its "Overweight" rating and significantly raised its target price from $285 to $426. "The FY2027 product revenue guidance has been raised to $6.07 billion, representing a year-over-year growth of 36%, about $213 million higher than market consensus, which already includes management's confidence that the product revenue growth rate for Q3 will slightly accelerate compared to Q2," J.P. Morgan analyst Samik Chatterjee stated in his report. "Furthermore, the revised full-year product revenue guidance implies a slight deceleration in product revenue growth for Q4 following a strong Q3, reflecting management's conservative stance and leaving room for further upward adjustments to guidance in subsequent periods of this fiscal year." Following Snowflake's latest earnings report, several other financial institutions have also raised their target prices for the stock. Oppenheimer increased its target price from $400 to $475; Piper Sandler raised it from $320 to $450; Citigroup from $395 to $490; and Wells Fargo & Company slightly raised its target price from $500 to $525.