Following the release of better-than-expected fiscal Q2 2027 results, cloud data platform Snowflake (SNOW.US) saw its shares rocket over 16% on Thursday, prompting a wave of price target hikes from Wall Street's top analysts. The market's enthusiasm was led by a standout performance from its AI capabilities. Jefferies analyst Brent Thill noted in a note to clients that "CoCo has become SNOW's killer AI capability, driving product revenue to exceed expectations by more than 5% for the second consecutive quarter, accelerating growth for the third straight quarter, and achieving record operating margins." He added that third-quarter product revenue growth is projected at 37%-38%, with the FY2027 guide raised by 5 points to 36%, far surpassing market consensus. The CoCo product saw a net addition of over 2,000 accounts quarter-over-quarter, and after just two quarters since general availability, it has penetrated more than 60% of the installed base. Management describes it as the easiest-selling product in SNOW's 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 maintained its "Buy" rating and lifted its price target from $385 to $430.

In tandem, Evercore ISI retained its "Outperform" rating and raised its target from $360 to $430. Analyst Kirk Materne highlighted in his Thursday report that management's acknowledgment of "demand for model choice" as a key driver was significant. He noted that this demand is fueled by cost optimization, which appears to be a competitive advantage for SNOW rather than a hurdle, as its ability to automatically route to the best model is actually pulling incremental demand. Materne further pointed to an operating margin of roughly 15%, well ahead of the ~12.5% guide, showcasing management's capacity to generate operational leverage while sustaining growth rates in the mid-30% range.

BTIG also reiterated a "Buy" rating, increasing its price target from $340 to $424. Analysts Gray Powell and Trevor Rambo described the quarter as "another excellent one," emphasizing that product revenue came in $74 million above the midpoint of guidance, marking the largest beat relative to guidance in company history. Additionally, the $158 million sequential net increase in product revenue surpassed the record $108 million set just last quarter, establishing a second consecutive quarter of record sequential dollar growth. They underscored that AI is driving urgency for data consolidation onto the SNOW platform, with CoCo and CoWork gaining broader adoption and monetization, alongside significant increases in AI user consumption on the core platform.

JPMorgan reaffirmed its "Overweight" rating and dramatically raised its price target from $285 to $426. Analyst Samik Chatterjee noted that the product revenue guidance for fiscal 2027 has been raised to $6.07 billion, representing 36% year-over-year growth and roughly $213 million above consensus. This figure now includes management's confidence in a slight acceleration of product revenue growth in the third fiscal quarter compared to the second. Chatterjee observed that the full-year guide implies a slight deceleration in Q4 growth following a robust Q3, which he interprets as a sign of management conservatism, leaving room for further upward revisions during the fiscal year.

In the wake of Snowflake's latest earnings report, several other financial institutions have also adjusted their price targets for the stock. Oppenheimer raised its target from $400 to $475; Piper Sandler from $320 to $450; Citi from $395 to $490; and Wells Fargo made a slight increase from $500 to $525.