Bank of America tweaks Snowflake stock price target before earnings

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.

Related: Bank of America resets ServiceNow stock price target sharply

This story was originally published by TheStreet on May 20, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.