2 Software Stocks That Whale Rock Is Betting Will Survive the Apocalypse
Snowflake (SNOW) reported Q1 FY2026 with GAAP net loss narrowing to $295.6M, adjusted EPS of $0.39, and raised fiscal 2027 revenue outlook to $5.8B. Twilio (TWLO) reported Q2 2026 revenue of $1.5B, non-GAAP EPS of $1.47, and raised full-year 2026 revenue growth outlook to 18-18.5%. Both stocks have 'Strong Buy' consensus ratings.
How this was made
The 30-second read
Why it matters
Both companies delivered better‑than‑expected results and raised revenue guidance, which may drive short‑term buying pressure.
Market read
Strong earnings and guidance upgrades for SNOW and TWLO could lift the broader SaaS sector and support tech‑heavy indices.
What to watch
Potential headwinds from macro‑economic slowdown or increased competition could temper growth expectations.
Background
The article summarizes recent quarterly earnings and forward guidance for Snowflake and Twilio, two prominent cloud‑software companies.
Ticker impact
Snowflake posted Q1 FY2026 results and raised FY2027 product‑revenue outlook to $5.8 bn.
potential upside toward analyst targets
Revenue outlook raised 31% YoY and operating‑margin target increased, indicating improved fundamentals.
Twilio reported Q2 2026 results and increased full‑year 2026 revenue outlook to 18‑18.5%.
upward pressure toward the $255‑$330 target range
Revenue growth raised by 3‑4 percentage points and strong net‑expansion rate signal demand strength.
Market effects
Positive outlooks reinforce strength in the cloud‑software and communications‑platform sectors.
U.S. tech equities may see modest gains as two high‑growth names lift sentiment.
Limited to investors focused on U.S. software and SaaS exposure.
Counterpoint
If guidance upgrades are already priced in, any miss on upcoming FY2027 results could trigger a pullback.
Key entities
- companySnowflake Inc.
Cloud data‑warehousing provider.
- companyTwilio Inc.
Cloud communications and customer‑engagement platform.
