Snowflake (SNOW) shares closed Thursday up nearly 20.3% after the cloud computing firm reported $0.35 of adjusted per-share earnings for its fiscal Q2, roughly double the figure for the same quarter last year. 

Investors are rewarding SNOW also because its management offered encouraging guidance for the full year with product revenue expected at $4.395 billion and free cash flow margin of 25%.  

Snowflake stock has been an attractive investment over the past four months. Including the post-earnings rally, it’s up roughly 95% versus its year-to-date low set on April 4. 

Snowflake Stock Could Rally Further to $275

Despite exceptional performance in recent months, Citi analyst Tyler Radke remains constructive on SNOW stock for the long term. 

According to him, the company’s suite of artificial intelligence (AI) features of “Cortex” will drive its share price further up in the second half of 2025. 

Radke’s bullish note arrives on the heels of an “encouraging SNOW summit” that signalled “strong Cortex uptake in both usage and pipeline.”

Citi now sees upside in Snowflake shares to $275, indicating potential for another 15% gain from here.

OpenAI Partnership to Drive SNOW Shares Higher

Citi raised its estimates for fiscal 2026 following Snowflake’s stellar earnings, citing “multiproduct momentum that could drive acceleration” next year. 

The cloud computing company teamed up with OpenAI over enterprise AI integration in February that also “boosted pipeline strength, driving rapidly accelerating momentum” its analyst wrote. 

Note that SNOW ended its Q2 with $6.9 billion of remaining performance obligations (RPO), up some 33% on a year-over-year basis, further substantiating the durability of its demand pipeline. 

With multiproduct traction, strategic AI partnerships, and a swelling backlog, Snowflake shares appear well-positioned to capitalize on enterprise digital transformation and AI-driven workloads.

Snowflake Shares Have Rallied Past the Street’s Mean Target

What’s also worth mentioning, however, is that not everyone on Wall Street is as bullish on Snowflake stock as Citi’s Tyler Radke. 

While the consensus rating on SNOW shares remains at “Strong Buy,” the mean target of roughly $231 indicates the post-earnings surge in this cloud stock may have gone a bit too far.