11:22 AM EST, 02/26/2026 (MT Newswires) -- Snowflake's (SNOW) Q4 results indicate a "healthy demand environment" that will support about a 30% revenue growth for the company, Morgan Stanley said in a Thursday note.

The company reported fiscal Q4 adjusted net income late Wednesday of $0.32 per diluted share, up from $0.30 a year earlier, as revenue increased to $1.28 billion from $986.8 million. Snowflake said it expects fiscal Q1 product revenue of $1.26 billion to $1.27 billion and fiscal 2027 product revenue of $5.66 billion.

Fiscal Q4 product revenue growth was 30%, with targets for both fiscal Q1 and 2027 imply a 27% growth, the brokerage noted. Apart from the product revenue growth, the stable demand environment is evidenced by sustained net retention, increasing customer base, and accelerating remaining performance obligations, Morgan Stanley said.

Snowflake's Cortex Code artificial intelligence coding agent could unlock further growth for the company, the investment firm added.

Morgan Stanley lowered its price target for Snowflake to $245 from $270, with an overweight outlook.

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