Snowflake has had a rough stretch. The stock is down 21.92% year-to-date and has lost nearly 6% over the past year, according to Yahoo Finance. That’s a stark contrast to a broader market that has pushed higher and an AI software sector that has minted new winners almost weekly. But Bank of America is not walking away.
BofA Securities raised its price target on Snowflake (SNOW) in a note shared with TheStreet, maintaining a Buy rating ahead of the company’s May 27 earnings report. At $171.27, that target implies roughly 20% upside from current levels.
The bank’s message is pointed: the AI business intelligence opportunity Snowflake is competing for is growing fast enough that the stock’s year-to-date underperformance looks more like an entry point than a warning sign.
Analyst Koji Ikeda, who ranks 857 out of 12,237 Wall Street Analysts, noted that BofA does not expect anything from the first-quarter results to change their view that Snowflake is gaining market share in the AI business intelligence opportunity. May 27 will be the test.
BofA Securities raised Snowflake’s price target to $205 from $195
BofA raised its price target from $195 to $205, reflecting a specific valuation framework – not a revision to financial forecasts. The firm raised its enterprise value to a calendar year 2027 estimated revenue multiple of 10.3 times from 9.8 times, citing higher execution confidence, according to the note.
That distinction matters. BofA is not increasing estimates because results have improved in the near term. It is paying a higher multiple because its confidence in Snowflake’s ability to execute over the next 18 months has increased, specifically around the AI business intelligence opportunity.
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The firm noted some concern around near-term Middle East demand headwinds but framed them as immaterial. Middle East revenue is estimated at approximately 1% of Snowflake’s total, according to the note. That level of geographic concentration is too small to move the needle on a company targeting $5.66 billion in full-year fiscal 2027 product revenue.
The broader analyst picture is divided. According to Investing.com, JMP Securities and Citizens both carry $325 price targets with Market Outperform ratings. UBS and Evercore ISI have pulled back their targets to $210 and $200, respectively, citing competition concerns and core cloud data warehousing deceleration.
My review of that range suggests the debate is genuine, but BofA is on the side that believes the AI tailwind is large enough to overwhelm the competitive headwinds.
Snowflake’s Q4 fiscal 2026 results and guidance frame what May 27 needs to deliver
Snowflake reported fiscal fourth-quarter 2026 results on February 25, setting the baseline for the upcoming print:
- Q4 revenue of $1.28 billion, up 30% year over year
- Product revenue of $1.23 billion, up 30% year over year
- Net revenue retention rate of 125%
- 733 customers with trailing 12-month product revenue above $1 million, up 27% year over year
- 740 net new customer additions, up 40% year over year
- Remaining performance obligations of $9.77 billion, up 42% year over year
Source: Snowflake Financial Results for the Fourth Quarter and Full-Year of Fiscal 2026
For Q1 fiscal 2027, Snowflake guided for product revenue of $1.262 billion to $1.267 billion, approximately 27% year-over-year growth, with an adjusted operating margin of 9%, according to guidance. Full-year fiscal 2027 product revenue guidance targets approximately $5.66 billion.
The Q1 guidance implies a modest deceleration from Q4’s 30% growth rate. Whether May 27 shows that deceleration held or reversed is the central question BofA is betting on favorably.
The AI product momentum that makes BofA’s confidence credible
Snowflake’s AI adoption numbers from Q4 are the foundation of the bull case heading into May 27. Over 9,100 accounts were using Snowflake AI features as of fiscal year-end 2026, including Toyota Motor Europe and United Rentals, according to the company’s earnings release.
Snowflake Intelligence – the company’s agentic AI platform – grew from a nascent offering to nearly 2,500 accounts in just three months. The company launched over 430 new product capabilities in fiscal 2026 alone, including Cortex Code, an AI coding agent, and acquired TensorStax to strengthen AI-driven data engineering.
Related: Mizuho resets view on Snowflake stock after CRO change
The AVEVA collaboration announced on May 19 adds another dimension. It is a direct zero-copy integration between AVEVA’s industrial intelligence platform and Snowflake’s AI Data Cloud, removing complex data pipelines for industrial customers. Partnerships with Anthropic, Google Cloud, and OpenAI provide native access to leading foundation models inside the Snowflake platform.
“Snowflake sits at the center of the enterprise AI revolution,” CEO Sridhar Ramaswamy said in the February earnings release. “We’re activating world-class agentic capabilities on top of that platform.”
For a stock that has been left behind in 2026, the May 27 earnings report is the clearest opportunity to reset that narrative, or deepen the doubt. BofA has picked its side.
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