Snowflake enters its September 2 earnings report with strong momentum as analysts raise price targets following record-breaking sequential growth driven by the company's new AI-powered coding tools.

Key Points

• Snowflake reported $1.39 billion in first-quarter revenue, marking a 33% year-over-year increase.
• Management raised its full-year fiscal 2027 product revenue guidance to $5.84 billion.
• The Cortex Code AI agent, branded as CoCo, is credited with driving the company's strongest sequential growth in history.
• TD Cowen and other major financial firms recently increased their price targets for Snowflake stock.
• The new Cortex AI gateway provides a centralized governance layer for managing enterprise AI agents and consumption costs.

Why it Matters

Snowflake’s shift toward an "Agentic Enterprise" model suggests the company is successfully reversing a previous growth slowdown through AI integration. However, investors must weigh these technological advancements against the fact that the stock has already gained 48% year-to-date, potentially limiting further upside if earnings results only meet expectations.