Snowflake Inc. (SNOW) is set to report its fourth-quarter fiscal 2026 earnings after the market close on Wednesday, February 25, with options traders pricing in a significant move of roughly 12.79% in either direction. This anticipated volatility is nearly double the stock's average post-earnings move of 6.7% over the past four quarters. The company's stock has had a challenging start to the year, declining 21.4% year-to-date, partly due to broader fears within the Software-as-a-Service (SaaS) sector regarding AI disruption.
Wall Street expects adjusted earnings per share (EPS) of $0.27 for Q4, down from $0.30 in the same period last year, while revenue is forecast to climb 27.8% year-over-year to $1.26 billion. Despite the recent downturn, Snowflake has a strong track record, having beaten earnings expectations in seven of the last eight quarters.
Ahead of the report, three major analysts—TD Cowen, Morgan Stanley, and Citi—all cut their price targets for SNOW stock to $270 but maintained their Buy ratings. Analysts cited factors including growth in user counts, data volumes, and AI inference activity, with Citi's Tyler Radke describing Snowflake's consumption-based model as "one of the stronger AI-proof consumption business models." The TipRanks consensus remains a Strong Buy, with an average price target of $269.86, implying about 56.4% upside from current levels.
In a significant development, Snowflake announced a multi-year, $200 million partnership with OpenAI on February 2. This deal grants Snowflake's 12,600 global customers direct access to OpenAI models through its Cortex AI engine, with deployments spanning Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
Separately, Lucid Group (LCID) is also in focus as it prepares to release its earnings report on Tuesday. The electric vehicle maker's stock has been under intense pressure, crashing to $9.55, down 72% from its 2025 high. Technical analysis points to a potential bullish reversal if a falling wedge pattern holds, with a target near $14.35. However, fundamental concerns persist.
Wall Street analysts are largely bearish on Lucid, with Morgan Stanley downgrading the stock to underweight and slashing its price target from $30 to $10. Bank of America and Cantor Fitzgerald also issued downgrades. The average analyst price target has fallen to $16.67. Primary concerns revolve around the company's balance sheet and accelerating cash burn, with analysts predicting a need to raise additional capital later this year. Profitability remains elusive, with an estimated loss-per-share of $9.6 for the quarter.
Potential catalysts for Lucid include an expected 95% surge in Q4 revenue to $459 million and a robotaxi partnership with Uber. Analysts project annual revenue could jump 90% this year to $2.45 billion, but the company has a history of missing estimates, and the impact of ending EV tax credits remains uncertain.
