Snowflake (NYSE:SNOW) is in a stronger position to weather macroeconomic turbulence than it was during the last downturn, according to a recent note from BTIG. The firm maintained its Buy rating and $220 price target ahead of the company's Q1 fiscal 2026 earnings release scheduled for May 22.

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BTIG expects Snowflake to meet or exceed consensus projections of 23% product revenue growth for the fiscal year. The firm credits this outlook to improved customer engagement practices, healthier fundamentals among top clients, and increased customer visibility into their usage patterns.

During previous market slowdowns, Snowflake saw its rapid growth pull back significantlyfrom 106% in fiscal 2022 to 70% in 2023, and then to 38% in 2024. Analysts Gray Powell and Trevor Rambo noted that the pace of this decline surprised many, citing economic pressure and customer efforts to rein in spending.

In response, Snowflake has adapted by offering tools to help customers track consumption more effectively and by stepping in early when usage surges unexpectedly. These measures are aimed at preventing overuse and improving retention.

BTIG also flagged the upcoming ramp-up of artificial intelligence workloads as a potential revenue driver in the second half of the year, potentially boosting consumption across Snowflake's platform.

It's important to note that Snowflake gained 9.76% over the past week, edging out the S&P 500's 8.31% increase. However, the stock slid 6.13% over the past month, contrasting with the broader market's 4.30% decline, before rebounding for an impressive 19.39% return in the last six months.