By Angela Palumbo

Snowflake stock soared on Thursday, the first trading session after the cloud-based data storage company's strong earnings report showed companies are still spending on software despite economic uncertainty.

Shares climbed 10% to $197.27 and were on pace for their highest close since Feb. 28, 2024, according to Dow Jones Market Data.

Snowflake posted its first-quarter financial results after Wednesday's stock market close. The standout numbers: product revenue, which comes from customers' consumption of compute, storage, and data transfer; and the company's first-ever $1 billion revenue quarter.

Besides beating top- and bottom-line projections, Snowflake gave current quarter and full-year product revenue guidance above Wall Street expectations.

"Snowflake delivered a strong beat and raise out of the gate to start FY26 driven by both core momentum and the adoption of new workloads," wrote Truist Securities analyst Joel Fishbein, who raised his price target on the stock to $235 from $210 and maintained a Buy rating

Wall Street is looking for an industry that can perform well in an economy unsettled by the Trump tariffs and geopolitical tensions. Software has been a haven this latest earnings seasons, and Snowflake is just the latest example.

"We really have not seen the impact of anything with the current -- all the news on tariffs and other things today. I think if we would have seen that, we would have saw it in the number of new customers," Snowflake CFO Mike Scarpelli said on the earnings call Wednesday night.

The stock is up 27% this year, and analysts predict it can go higher. Of the 49 analysts surveyed by FactSet, 39 have Buy ratings and 10 have Hold ratings. Their average price target is $218.17.

"We have confidence Snowflake should continue to execute on a beat-and-raise strategy as the year progresses and continue to show leverage in the model," wrote Cantor analyst Thomas Blakey wrote, who raised his price target to $242 from $183 and maintained an Overweight rating.

Write to Angela Palumbo at angela.palumbo@dowjones.com

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May 22, 2025 11:00 ET (15:00 GMT)

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