JPMorgan analyst Mark R Murphy maintained an Overweight rating on Snowflake Inc. (NYSE:SNOW) with a price forecast of $255 ahead of its earnings release after the closing bell on Wednesday, Dec. 3.
The analyst shared insights from a recent discussion with a Fortune 150 Snowflake customers.
Key Takeaways
The analyst writes that customers highlight Snowflake as a unified data layer that aggregates information across disparate business areas, replacing their previous on-premises BI stack and providing end-to-end visibility for analytics and customers.
Snowflake is central to the firm's AI and data strategy, forming the core of its tech stack and influencing the AI budget, although no major AI platform decisions have been made yet due to evolving market conditions, adds the analyst.
Murphy notes that the company leverages multiple Snowflake offerings, including Snowpark for performance gains similar to Spark-based solutions, zero-copy data sharing for client reporting, and is experimenting with Cortex to integrate with certain applications, while still using Databricks for other workloads.
Analyst View
The analyst says that they remain confident in Snowflake's long-term prospects, driven by strong secular tailwinds.
The company's rapid product innovation, particularly in AI/ML, and its strategic position as a key data layer provide a favorable competitive edge, adds the analyst.
The analyst estimates adjusted EPS of $1.15 in 2026 and $1.41 in 2027.
Price Action: SNOW shares are up 2.43% at $265.95 at the last chekc on Wednesday.
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