Snowflake (NYSE:SNOW) is heading into its September 2 earnings report with a strong growth narrative. Prior to earnings, on August 20, TD Cowen raised its price target on the stock to $370 from $300 while maintaining a Buy rating.

The firm is not alone, Deutsche Bank, Truist, Bofa, and UBS have all raised their targets recently. Almost everyone is talking about Cortex Code, an AI-powered coding agent built directly into the Snowflake data cloud.

Branded as CoCo, the AI coding tool has driven Snowflake's best sequential growth in its history. We know that AI is improving Snowflake's growth story, but how much of the improvement is already priced in?

Growth is Already Reaccelerating

For the first quarter of fiscal 2027, Snowflake achieved revenue of $1.39 billion, representing 33% year-over-year growth. According to CEO Sridhar Ramaswamy, the milestone quarter reported product revenue of $1.33 billion, up 34% year-over-year, marking the strongest sequential dollar growth in company history.

Remaining performance obligations were $9.21 billion, representing 38% year-over-year growth. Cortex Code and Snowflake Intelligence, in particular, are becoming central for Snowflake's 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.

Two Catalysts for Snowflake

TD Cowen highlighted two growth catalysts for Snowflake. The first is CoCo, the AI coding agent introduced previously as Cortex Code. According to the firm, the coding agent is unleashing many new AI accelerants.

Another potential catalyst working in favor of Snowflake is its Cortex AI gateway, a centralized control plane and governance layer for enterprise AI agents. The product enables enterprises to manage AI agents and monitor AI consumption costs. It allows the company to move deeper into AI operations and security, enabling a robust Snowflake ecosystem.

Together, the two catalysts could help drive another strong quarter of growth acceleration.

The Catch: The Stock Already Knows This

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.