Snowflake (SNOW)’s Q1 Upside Likely Given Strong Checks And Ramping Cortex Code Adoption, Says RBC Capital

Snowflake Inc. (NYSE:SNOW), featuring a abbreviated interval of 5.18% and upside imaginable of 52.60%, earns a spot connected our database of the best unreality stocks to bargain arsenic Azure maturation hits 40%.

On May 15, 2026, RBC Capital lowered its terms people connected Snowflake Inc. (NYSE:SNOW) to $220 from $245 portion keeping an “Outperform” rating, arsenic portion of a broader probe enactment previewing Q1 results crossed bundle names. The steadfast flagged a tricky but favorable setup, with Q1 upside apt fixed beardown checks and ramping Cortex Code adoption that could effect successful nary deceleration to humble acceleration successful merchandise revenue.

That expert optimism is supported by the company’s FY27 outlook, issued alongside its astir caller earnings.

Management guided Q1 merchandise gross of $1.262 cardinal to $1.267 billion, representing 27% year-over-year growth. For the afloat year, Snowflake Inc. (NYSE:SNOW) expects merchandise gross of astir $5.66 billion, besides reflecting 27% year-over-year growth, with the Observe acquisition contributing astir 1 percent constituent of that growth. Management guided FY27 non-GAAP merchandise gross borderline of 75%, non-GAAP operating borderline of 12.5%, and non-GAAP adjusted escaped currency travel borderline of 23%, the second carrying an approximate 150 ground constituent headwind tied to the acquisition.

Meanwhile, Snowflake Inc. (NYSE:SNOW) deployed much than 430 merchandise capabilities to marketplace during FY26, with absorption citing continued spot successful its halfway concern and further maturation successful AI workloads arsenic the ground for its outlook. The institution ended the Q4 FY26 4th with $4.8 cardinal successful cash, currency equivalents, and short- and semipermanent investments combined, with $1.1 cardinal remaining nether its repurchase authorization.

Snowflake Inc. (NYSE:SNOW) provides a cloud-based information level that helps organizations store, manage, and stock information crossed aggregate nationalist clouds. Its platform, called the Snowflake Data Cloud, supports divers workloads including information engineering, analytics, instrumentality learning, and unafraid collaboration.

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