Snowflake Stock Surges on AI-Driven Earnings Beat and Upgraded Guidance

Snowflake (SNOW) shares climbed 3.6% to $239.20 after posting Q1 FY2027 product revenue of $1.334 billion, a 33.9% year-over-year increase that surpassed estimates by 5.3%. The company's AI product, Cortex Code (CoCo), now serves over 7,100 accounts since its February 2026 launch and is cited as the primary catalyst for raised full-year guidance.

HSBC upgraded SNOW to Buy, lifting its price target from $176 to $289, while Monness, Crespi, Hardt set the most bullish target at $320. Snowflake expanded partnerships with AWS and OpenAI and announced plans to acquire AI firm Natoma, signaling deepening AI integration.

Operating income outperformed expectations by 35.2%, with product gross margin guidance holding steady at 75% for FY2027. The stock had already gained 39% in the week leading up to the earnings report.