Oppenheimer Just Gave Snowflake Stock a Big Vote of Confidence

Snowflake (SNOW) stock has already delivered a powerful rally in 2026, but Oppenheimer believes the data cloud company still has plenty of room to run. The firm raised its price target to $400 from $295 while maintaining an “Outperform” rating, representing a roughly 36% increase in its target.

The bullish call comes as Oppenheimer sees stronger consumption trends across regions and industries, along with accelerating adoption of Snowflake's AI coding agent, CoCo. For a company whose revenue depends heavily on how much customers use its platform, that is an important development.

Snowflake Stock Is Already Up Sharply

SNOW shares have gained roughly 50% year-to-date (YTD) and more than 69% over the past year. The stock recently traded near its 52-week high, giving Snowflake a market capitalization of more than $116 billion.

This rally has been driven by accelerating product revenue, stronger customer spending, and growing demand for AI workloads. Also, Snowflake's consumption-based model gives investors another reason to pay attention because higher usage can translate directly into higher revenue.

The only challenge is that expectations are already high. Snowflake continues to compete aggressively with Databricks, while its earnings remain negative. That makes the latest Oppenheimer call particularly important because it suggests the company's growth trajectory could be stronger than the market currently expects.

Oppenheimer Sees AI Driving Faster Growth

Oppenheimer's $400 price target is based on more than simply a bullish view of artificial intelligence.

Analysts led by Ittai Kidron see strong customer consumption and pipeline activity across geographies and verticals. They are also seeing accelerating adoption of CoCo, which could become an important driver of additional workloads on Snowflake's platform.

Oppenheimer expects product revenue growth to accelerate to about 34.7% year-over-year (YoY), compared with its previous estimate of 33.5%. The firm also expects product revenue of approximately $1.469 billion, around 3% to 4% above consensus.

That is significant because Snowflake does not need to win every AI workload to benefit. If customers increasingly use the platform to build and run AI applications, existing accounts could simply spend more.

The company is also expanding beyond CoCo. Snowflake recently introduced new AI capabilities and strengthened integrations with major AI models, giving enterprises more ways to use their data for artificial intelligence.

Valuation Leaves Little Room for Error

The biggest concern for SNOW investors is valuation.

Snowflake trades at roughly 23 times forward sales based on recent market prices, far above the broader software sector, which trades around 3. 

Investors are therefore paying a substantial premium for future growth.

The latest quarterly results help justify some of that premium. Snowflake delivered stronger-than-expected results in the first quarter of fiscal 2027, with revenue reaching $1.39 billion, up 33% YoY, while adjusted earnings per share came in at $0.35. 

For the second quarter, Snowflake expects product revenue of $1.415 billion to $1.420 billion, representing about 30% YoY growth. The company also projects a non-GAAP operating margin of 12.5%.

Snowflake is scheduled to report its fiscal second-quarter results on Sept. 2, 2026. The upcoming report will give investors a fresh look at whether demand for its data and AI platform is continuing to support growth at the pace in its latest guidance.

Wall Street Remains Constructive on SNOW Stock

Oppenheimer is not alone in seeing upside in SNOW stock, although Wall Street's overall target is more conservative.

According to Barchart, SNOW carries a consensus rating of “Strong Buy,” with an average price target of roughly $342, which tells us that the current price has already crossed this target and is now climbing toward its street high target of $500, which is around 52% above current levels.

Several firms have also raised their targets in recent months as AI adoption and consumption trends improve.

Moreover, Oppenheimer's $400 target is therefore an aggressive call, but it highlights the key question for SNOW investors: if CoCo and other AI products continue pushing customers toward higher workloads, Snowflake's growth could accelerate enough to justify its premium valuation.