Snowflake (SNOW) Boosts FY2026 Guidance on Strong Enterprise Demand

Snowflake Inc. (NYSE:SNOW) ranks among the best high growth stocks to buy now. Bernstein boosted its price target for Snowflake Inc. (NYSE:SNOW) to $237 from $221 on December 4 while retaining a Market Perform rating after the company’s third-quarter fiscal 2026 results.

The cloud data company boosted its fiscal year 2026 guidance by roughly 1.5%, which was ahead of expectations, though consistent with past trends, and announced revenue that exceeded estimates by 3%. Meanwhile, strong consumption and enterprise customer momentum drove a 29% increase in product revenue, which came in above Street projections by $28 million.

Snowflake Inc. (NYSE:SNOW) also generated $100 million in annual recurring revenue from AI workloads a quarter above its schedule, while contracted remaining performance obligation (cRPO) development and net revenue retention (NRR) stayed consistent.

Following the earnings results, the company’s management emphasized that its core business activities, as well as recent categories like data engineering and artificial intelligence/machine learning, continue to make great progress.

Citing the Snowflake’s steady growth projection, Bernstein pointed out that without additional information on fiscal 2027 expectations, an in-line quarter could not be enough to spur near-term gains, given that the stock is currently trading at a full multiple.

Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform that enables organizations to store, manage, analyze, and securely share data across multiple cloud providers.

While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.