Report published September 3, 2026
Snowflake (SNOW) F2Q Earnings Analysis & Rating: Deutsche Bank Research
Source and citation context
- Issuer
- Deutsche Bank
- Report date
- September 3, 2026
- Analysis as of
- September 2, 2026
Authors / editors: Brad Zelnick, Bhavin Shah, Daniel Knauff, Yash Kejriwal
Finvaulta summarizes Deutsche Bank's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Snowflake reported strong F2Q results with Product revenue accelerating 36.8% y/y to $1,492m and Non-GAAP operating margin jumping to 15.3%. Deutsche Bank maintained its Buy rating and lifted its price target to $400 from $350 on accelerating AI adoption and durable consumption trends.
Key Takeaways
- 1.Snowflake delivered strong F2Q results with Product revenue growing 36.8% y/y to $1,492m, beating guidance midpoint by 5.2% on accelerating consumption.
- 2.Rapid adoption of Snowflake's AI portfolio, notably CoCo (used by ~63% of customers), contributed roughly half of the growth acceleration observed.
- 3.Non-GAAP operating margin expanded sharply to 15.3% (+4.2pts y/y), and FY27 NGOM guidance was raised to 14.5% driven by AI-driven operating leverage and hiring discipline.
Table of Contents
- F2Q - Revving up the flywheel
- What We Liked / What We're watching on the Quarter
- What We Liked / What We're watching on the Guide
- Estimate Revisions and Valuation
- Appendix 1
- Important Disclosures
- Analyst Certification
- Historical recommendations and target price: Snowflake (SNOW.N)
- Company rating dispersion and banking relationships
- Company Rating and Dispersion Key
- Additional Information
Report data
Figure 2: F2Q Summary — as of September 2, 2026.
| Metric | Estimate | Context |
|---|---|---|
| Product Revenue | 1492.0 USD millions | Reported product revenue beat DB estimates and consensus by 5.2% |
| Non-GAAP Operating Margin | 15.3% | Non-GAAP operating margin cleared guidance of 12.5% |
| Net Retention Rate (NRR) | 126.0% | NRR sustained the +126% level from the prior quarter |
| Total Net Customer Adds | 692.0 customers | Total net customer adds set a seasonal record |
| Price Target | 400.0 USD | Updated DCF-based price target raised from $350 |
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Authors / Editors
Reported Data Context
- Product Revenue: 1492.0 USD millions (F2Q27) · Source: Company Reports
- Non-GAAP Operating Margin: 15.3 % (F2Q27) · Source: Company Reports
- Net Retention Rate (NRR): 126.0 % (F2Q27) · Source: Company Reports
- Total Net Customer Adds: 692.0 customers (F2Q27) · Source: Company Reports
- Price Target: 400.0 USD (12-month) · Source: Deutsche Bank