While field checks ahead of Snowflake Inc's (NYSE:SNOW) earnings release indicate "sustained momentum" in the fourth quarter of fiscal 2026 and into fiscal 2027, the setup is "complicated," according to BTIG.

The Snowflake Analyst: Analyst Gray Powell reiterated a Buy rating, while slashing the price target from $312 to $235.

The Snowflake Thesis: Field checks indicate the company sustaining 25% revenue growth, "driven by strong consumption trends, healthy AI workload adoption, and solid retention/expansion within SNOW's installed base," Powell said in the note.

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He added, however, that Snowflake's new product initiatives could expand existing customer spend rather than drive new logo wins.

"Looking to the print, we see a complicated set-up," the analyst wrote. Whether the company could beat Street estimates of 27% revenue growth in the fourth quarter remains to be seen. However, the buy-side expectation is likely 30% and beyond, Powell adds.

The price target has been lowered to reflect "a more conservative multiple," Powell said.

SNOW Price Action: Shares of Snowflake had declined by 6.84% to $160.77 at the time of publication on Monday.

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