Snowflake (SNOW) is back in rally mode after delivering a strong earnings report and issuing bullish guidance. The move ends a month-long consolidation and puts the stock back on breakout watch.

The company reported second-quarter earnings of $0.35 per share, beating Wall Street expectations by $0.08. Revenue rose 32% year-over-year to $1.15 billion, also above consensus.

The key driver was product revenue, which grew 32% to $1.09 billion. That’s strong momentum for a company already leading the cloud data analytics space.

Snowflake’s customer base continues to grow. The company now has 654 customers generating over $1 million in product revenue over the past 12 months, up 30% from last year. Its global reach also expanded, with 751 Forbes Global 2000 companies now on the platform.

For Q3, management guided product revenue between $1.125 and $1.130 billion or 25–26% growth.

Full-year FY26 product revenue is expected to hit $4.4 billion, representing 27% growth. Operating margin guidance came in at 9%, steady with prior quarters and analyst expectations.

Wall Street Responds with Upgrades
Monness Crespi & Hardt raised their 12-month price target on SNOW to $260 from $245.

Analysts at the firm highlighted the company’s strong Q2 results and confident FY26 guidance. The firm also commented on Snowflake’s positioning in long-term cloud and AI trends.

The company is innovating aggressively but competition remains intense and the macro environment is still uncertain.

That said, the tone from Wall Street is clearly shifting more bullish after this report. More upgrades are likely in the coming days.

The current average price target from Wall street is $233, just above this morning’s trading price.

Chart Setup Turns Bullish
Technically, SNOW had been stuck in a tight range between $190 and $200 throughout August.

The stock dropped 15% earlier in the month after a downgrade from Goldman Sachs and news that George Soros’ fund had cut its stake.

But today’s surge above $225 resets the chart. Snowflake has reclaimed its 50-day moving average and turned its trend bullish again. A breakout above $230 could send shares toward new highs.

Bottom line: strong earnings, rising guidance, and a bullish technical reversal put Snowflake back on traders’ radars. The stock just flipped from neutral to bullish—and the upside target is now back in play.

— Chris Johnson

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Source: Money Morning