Snowflake Earnings: Solid Start to Fiscal 2026 Positions the Company Favorably for Competition

No-moat Snowflake delivered a solid start to fiscal year 2026, with revenue growing 26% and remaining performance obligations up 34% compared with a year earlier. The company continues to benefit from the adoption of open table formats and increased queries for artificial intelligence-related data analytics. We lift our fair value estimate to $150 per share from $137, based on a more optimistic revenue outlook supported by healthy demand for Snowflake’s user-friendly data processing capabilities. However, we still think Snowflake faces pressure to maintain its high growth and justify its valuation in a competitive environment. Shares currently look overvalued to us.