Shares of Snowflake Inc (SNOW  ) rose in early trading on Thursday, after the company reported upbeat fourth-quarter results.

Here are the key analyst insights:

  • Goldman Sachs analyst Gabriela Borges reiterated a Buy rating, while slashing the price target from $246 to $216.
  • Needham analyst Mike Cikos maintained a Buy rating, while reducing the price target from $280 to $200.
  • Rosenblatt Securities analyst Blair Abernethy maintained a Buy rating and a $275 price target.
Goldman Sachs: Snowflake reported product revenue 2% above Street expectations and EBIT margins 350 basis points (bps) ahead. The stock came under pressure following the earnings release due to "concerns around guidance conservatism" she added.

Snowflake seems poised drive upside to Street estimates, with product revenue acceleration through the year, the analyst stated. "As Snowflake continues to broaden its monetizable surface across its AI Data Cloud (Cortex, Postgres, Openflow, Snowpark, Iceberg, etc.), we are constructive on its ability to capture increasing wallet share," she further wrote.

Needham: Snowflake delivered strong results, with product and total revenue growth re-accelerating to 30% year-on-year, Cikos said. "Importantly, Snowflake's AI roadmap is generating significant traction, with management citing usage by over 9,100 accounts (68% penetration)," he wrote.

The company had a "blizzard of large deal activity," with seven nine-figure deals in the quarter, versus two last year, the analyst stated. Snowflake guided to product revenue growth of 27% for the first quarter of fiscal 2027 to $1,262-$1,267 million, higher than consensus of $1,255 million), and announced full-year product revenue guidance of $5,660 million, topping consensus of $5,545 million, he added.

Rosenblatt Securities: Snowflake delivered strong results, with total revenue of $1,284 million topping consensus of $1,256 million, Abernethy said. Revenue growth and "ongoing operating efficiency improvements" improved margins to 11%, he added.

The company's RPO grew 42% year-on-year on large contracts, including a record deal of $400 million, and healthy renewals, the analyst stated. "In the near term, we believe the core Snowflake offering continues to be the main driver of revenue performance, and we see the trailing NRR as impressive at 125%," he further wrote.

SNOW Price Action: Shares of Snowflake had risen by 2.78% to $173.92 at the time of publication on Thursday.