Snowflake: 1Q Preview - Cautiously Optimistic

Research evidence excerpt

Snowflake: 1Q Preview - Cautiously Optimistic

Deutsche Bank

Research

Rating Company Date

Buy Snowflake 18 May 2026

North America Reuters Bloomberg Rating Buy

United States SNOW.N SNOW US Price target (USD) 230.00 Price at 15 May 26 157.47

52-week range 277.14 – 121.11

TMT

Software Valuation & Risks

1Q Preview - Cautiously Optimistic

Brad Zelnick

Looking to F1Q earnings, we remain constructive on Snowflake shares and expect Research Analyst

+1-212-250-8563 a solid 3%+ beat to Product revenue against what we view as a favorable demand

backdrop. Underlying cloud trends remain supportive, with hyperscaler Bhavin Shah, CFA

commentary pointing to continued strength in cloud migrations alongside solid Research Analyst

prints from other consumption based ISV peers. For Snowflake, we also note that +1-212-250-6775

the quarter benefits from what we estimate will be a HSD $m inorganic

Daniel Knauff contribution from Observe and a more favorable working day calendar. We think Research Associate

a stronger F1Q result would be well received after a touch lighter than normal +1-415-2622041

beat cadence over the past two quarters and go a long way in helping derisk what

otherwise looks like a more demanding setup for F2Q and into F2H. Yash Kejriwal

Research Associate

Against this backdrop, we think the underlying fundamentals look more +1-212-250-1203

constructive than what we've seen in the -28% YTD move in the stock. Core

consumption remains supported by a healthy pace of cloud investment, where

peer results and our checks remain positive. One public cloud expert we spoke

with noted an unexpected acceleration in Snowflake NTM commit growth this

past quarter, still primarily driven by traditional data migrations but with notable