Snowflake (NYSE:SNOW) is heading into its September 2 earnings report with a strong growth narrative. The company’s Cortex Code, an AI-powered coding agent built directly into the Snowflake data cloud, has driven Snowflake’s best sequential growth in its history.

Branded as CoCo, the AI coding tool has been a major contributor to Snowflake’s success. The firm’s strong growth narrative has been fueled by its AI products and growth improvement, with many analysts and investors taking notice.

TD Cowen, a leading financial services company, recently raised its price target on Snowflake to $370 from $300 while maintaining a Buy rating. The firm is not alone in its optimistic outlook, with Deutsche Bank, Truist, Bofa, and UBS also raising their targets recently.

The company’s growth has been impressive, with revenue of $1.39 billion for the first quarter of fiscal 2027, representing 33% year-over-year growth. The company’s product revenue of $1.33 billion, up 34% year-over-year, marked the strongest sequential dollar growth in company history.

Snowflake’s remaining performance obligations were $9.21 billion, representing 38% year-over-year growth. The company’s Cortex Code and Snowflake Intelligence are becoming central to its vision of the Agentic Enterprise.

For the full-year of fiscal 2027, management raised product revenue outlook to $5,840 million, representing 31% year-over-year growth, and up from previous guidance of $5,660 million. These numbers suggest how Snowflake’s long growth slowdown may be finally reversing.

TD Cowen highlighted two growth catalysts for Snowflake: CoCo, the AI coding agent, and the company’s Cortex AI gateway. The Cortex AI gateway is a centralized control plane and governance layer for enterprise AI agents, enabling enterprises to manage AI agents and monitor AI consumption costs.

Despite the catalysts, Snowflake (NYSE:SNOW) stock is already 48% up year-to-date. This means that the stock is already up before the price targets caught it. Since good news tends to move up stock only when the market didn’t expect it, it’s hard to say whether Snowflake’s quarter will make the stock budge if it’s good and not great.