Wall Street Believes SNOW's AI Demand Is Accelerating After Pre-Q2 Checks — Citizens Says 88% Of Data Points Are Positive

• UBS said its pre-second quarter checks indicate that customers are increasing spending on the data layer and adopting Snowflake’s Cortex Code at a higher rate.
• The firm said there was limited evidence of large language models displacing spending on data software.
• Analysts at Citizens echoed similar sentiments, saying that Snowflake’s channel checks have “improved significantly” ahead of its Q2 results.

Snowflake Inc. (SNOW) is seeing stronger AI-driven demand ahead of its second-quarter (Q2) results, according to pre-Q2 checks from analysts at UBS and Citizens.

According to TheFly, analysts at UBS maintained their ‘Buy’ rating on Snowflake shares while raising their price target to $425 from $370, implying an upside potential of about 29% from Monday’s closing price.

Snowflake shares were up nearly 1% in Tuesday’s pre-market trade.

UBS Says Pre-Q2 Checks Point To Accelerating Demand At SNOW

UBS said its pre-Q2 checks indicate accelerating AI-driven demand at Snowflake, with customers increasing spending on the data layer and adopting the company’s Cortex Code (CoCo) product at a higher rate.

The firm said there was limited evidence of large language models displacing spending on data software. That supports UBS’ Buy thesis as AI-driven demand continues to develop across Snowflake’s customer base.

At the same time, UBS acknowledged elevated expectations for Snowflake and competitive pressure from Databricks. Despite those factors, the firm’s checks continue to support its positive view of the shares, the analyst told investors in a research note.

Snowflake is set to report its Q2 earnings after the bell on Sept. 2, 2026.

Citizens' Says SNOW Channel Checks Have ‘Improved Significantly’

Analysts at Citizens echoed similar sentiments, saying that Snowflake’s channel checks have “improved significantly” ahead of its Q2 results, with 88% of data points positive compared with 53% in the previous quarter.

The firm cited AI-driven consumption as one of the factors behind its positive view, alongside Snowflake’s large addressable market and product leadership. Citizens also sees continued opportunity for Snowflake and Databricks, saying there is “room for both Snowflake and Databricks” in the market.

The firm maintained its ‘Outperform’ rating on Snowflake while raising its price target to $408 from $325.

Earlier this week, Jefferies also raised its price target on Snowflake to $385 from $310 while maintaining a ‘Buy’ rating. The firm’s survey of 20 Snowflake partners showed stable core demand quarter over quarter and an uptick in data engineering.

Jefferies said it remains cautious on the near-term setup given a tougher fiscal Q2 comparison and Snowflake’s 50% rally year-to-date, but added that it is “constructive” on the shares over the longer term. The firm also said data cloud demand continues to inflect, citing a Q2 revenue growth of over 80% year-on-year at its enterprise rival, Databricks.

How Retail Traders Reacted To SNOW Stock

Retail sentiment on Stocktwits around Snowflake was in the ‘bearish’ territory at the time of writing.

SNOW stock is up 50% year-to-date and 66% over the past 12 months. The Vanguard Morningstar Total Stock Market ETF (VTI) is up 21% over the past 12 months, while the Vanguard Extended Market Index Fund ETF (VXF) is up 25%.

Also See: BIDU's GPU Cloud Revenue Soars 283% In Q2 — CEO Says AI Business Is Now 'Firmly Established As The Core'

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