Snowflake’s Q1 product revenue guidance of $1.262 billion to $1.267 billion reflects 27% year-over-year growth amid strong adoption trends.
RBC Capital lowered its price target for Snowflake (SNOW) to $220 from $245 while maintaining an Outperform rating ahead of Q1 results. The firm cited strong checks and accelerating adoption of Cortex Code as potential drivers for upside, expecting no deceleration or modest acceleration in product revenue growth.
Snowflake guided Q1 product revenue between $1.262 billion and $1.267 billion, representing 27% year-over-year growth. For FY27, the company projects $5.66 billion in product revenue, also up 27%, with the Observe acquisition contributing 1 percentage point to growth. Non-GAAP operating margins are forecast at 12.5%, while adjusted free cash flow margins face a 150 basis point headwind from the deal.
Management highlighted over 430 product capabilities deployed in FY26, reinforcing growth momentum. The firm’s outlook aligns with RBC’s optimism, though the reduced price target reflects broader sector adjustments.