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Snowflake Rises 24% Year to Date: Buy, Sell or Hold the Stock?
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Key Takeaways
AI innovations and partnerships with MSFT, AMZN and NVDA drive Snowflake's platform growth.
The Cortex AI platform enables SQL-based generative AI with up to 60% cost savings.
SNOW expects FY26 product revenues to rise 25% year over year, reaching $4.32 billion.
Snowflake (SNOW - Free Report) shares have surged 24.7% year to date, outperforming the Zacks Computer and Technology sector’s appreciation of 13.8% and the Zacks Internet Software industry’s growth of 21.4%. The cloud data platform provider has demonstrated strong execution throughout 2025, driven by expanding AI capabilities and a rich partner base.
Snowflake’s stock momentum reflects investor confidence in Snowflake's platform adoption and enterprise market penetration. As of April 30, 2025, SNOW had more than 11,500 customers, with more than 600 customers generating more than $1 million in annual product revenues. The platform’s appeal among large enterprises continues to grow, with 754 Fortune Global 2000 companies leveraging Snowflake's data cloud infrastructure for their mission-critical workloads.
SNOW Stock’s YTD Performance
Image Source: Zacks Investment Research
Snowflake Shares Trading at a Premium
Snowflake shares are trading at a premium, as suggested by the Value Score of F. In terms of the 12-month price/sales (P/S), SNOW is trading at 12.69X, well above the industry’s 5.74X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
With shares gaining momentum year to date and valuation metrics stretched, the key question is whether SNOW still offers compelling upside at current levels. Let’s take a closer look.
SNOW Benefits From AI-Driven Portfolio Expansion
Snowflake's AI capabilities have been noteworthy, with more than 5,200 accounts now using machine learning features weekly. The Cortex AI platform has evolved from experimental to production-ready infrastructure, featuring tools like Cortex AISQL that embed generative AI into SQL queries while delivering up to 60% cost savings.
SNOW’s compute enhancements include Standard Warehouse Gen2 for faster analytics performance and Adaptive Compute for automated resource management, improving both speed and efficiency. The addition of Intelligence and Data Science Agent tools further democratizes AI access for business users and data professionals. Enhanced data ingestion through Openflow complements these compute improvements, addressing key bottlenecks that previously limited enterprise AI adoption.
The platform's marketplace ecosystem reflects this AI-first shift, with 39% of customers maintaining data sharing relationships and listings growing 21% year over year to 3,098 during the first quarter of fiscal 2026. Strategic partnerships with content providers like USA TODAY and Stack Overflow create network effects around AI-ready datasets.
The planned acquisition of Crunchy Data will add enterprise-grade PostgreSQL capabilities to the platform, expanding Snowflake's addressable market into transactional workloads. Together, these product initiatives are expected to encourage enterprises to consolidate more of their data infrastructure within Snowflake’s ecosystem.
SNOW's Rich Partner Base Expands Market Reach
Snowflake maintains a strong partner ecosystem with Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) , NVIDIA (NVDA - Free Report) and major system integrators. The Microsoft alliance integrates OpenAI models into Cortex AI through Azure, extending features into Microsoft 365 and Teams. This collaboration positions Snowflake deeper within Microsoft’s enterprise productivity stack. The NVIDIA partnership combines Cortex AI with NVIDIA AI Enterprise, enabling customers to scale advanced AI applications. As GPU demand accelerates, alignment with NVIDIA strengthens Snowflake’s ability to deliver performance-driven workloads.
Amazon Web Services remains a critical pillar, with Snowflake supporting more than 6,000 joint customers across industries. The Amazon collaboration expands to secure workloads on AWS GovCloud, reinforcing Snowflake’s cloud-native positioning as enterprises consolidate data platforms.
Beyond core cloud partnerships, Snowflake is teaming with Acxiom to embed AI-powered marketing solutions directly into its environment, while customers like Canva highlight enterprise adoption.
SNOW Anticipates Upside for Q2 and FY26
For the second quarter of fiscal 2026, Snowflake expects product revenues in the range of $1.03-$1.04 billion. The projection range indicates year-over-year growth of 25%.
For fiscal 2026, Snowflake projects product revenues to grow 25% year over year to reach $4.32 billion.
The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is currently pegged at $1.09 billion, indicating 24.91% year-over-year growth. The consensus mark for earnings is currently pegged at 26 cents per share, unchanged over the past 30 days. This suggests an increase of 44.44% year over year.
The consensus estimates for SNOW’s fiscal 2026 revenues is pegged at $4.52 billion, indicating year-over-year growth of 24.57%. The consensus mark for earnings is pegged at $1.06 per share, unchanged over the past 30 days. This suggests an increase of 27.71% on a year-over-year basis.
What Should Investors do With SNOW Stock?
Snowflake’s AI-driven portfolio expansion, growing enterprise adoption and strong partner ecosystem have kept momentum steady through 2025. However, with shares already trading at a premium relative to the industry, the stock appears to be pricing in much of the near-term upside. Investors may prefer to monitor how AI adoption and the Crunchy Data integration translate into sustained top-line acceleration before considering fresh positions.
Image: Shutterstock
Snowflake Rises 24% Year to Date: Buy, Sell or Hold the Stock?
Key Takeaways
Snowflake (SNOW - Free Report) shares have surged 24.7% year to date, outperforming the Zacks Computer and Technology sector’s appreciation of 13.8% and the Zacks Internet Software industry’s growth of 21.4%. The cloud data platform provider has demonstrated strong execution throughout 2025, driven by expanding AI capabilities and a rich partner base.
Snowflake’s stock momentum reflects investor confidence in Snowflake's platform adoption and enterprise market penetration. As of April 30, 2025, SNOW had more than 11,500 customers, with more than 600 customers generating more than $1 million in annual product revenues. The platform’s appeal among large enterprises continues to grow, with 754 Fortune Global 2000 companies leveraging Snowflake's data cloud infrastructure for their mission-critical workloads.
SNOW Stock’s YTD Performance
Image Source: Zacks Investment Research
Snowflake Shares Trading at a Premium
Snowflake shares are trading at a premium, as suggested by the Value Score of F. In terms of the 12-month price/sales (P/S), SNOW is trading at 12.69X, well above the industry’s 5.74X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
With shares gaining momentum year to date and valuation metrics stretched, the key question is whether SNOW still offers compelling upside at current levels. Let’s take a closer look.
SNOW Benefits From AI-Driven Portfolio Expansion
Snowflake's AI capabilities have been noteworthy, with more than 5,200 accounts now using machine learning features weekly. The Cortex AI platform has evolved from experimental to production-ready infrastructure, featuring tools like Cortex AISQL that embed generative AI into SQL queries while delivering up to 60% cost savings.
SNOW’s compute enhancements include Standard Warehouse Gen2 for faster analytics performance and Adaptive Compute for automated resource management, improving both speed and efficiency. The addition of Intelligence and Data Science Agent tools further democratizes AI access for business users and data professionals. Enhanced data ingestion through Openflow complements these compute improvements, addressing key bottlenecks that previously limited enterprise AI adoption.
The platform's marketplace ecosystem reflects this AI-first shift, with 39% of customers maintaining data sharing relationships and listings growing 21% year over year to 3,098 during the first quarter of fiscal 2026. Strategic partnerships with content providers like USA TODAY and Stack Overflow create network effects around AI-ready datasets.
The planned acquisition of Crunchy Data will add enterprise-grade PostgreSQL capabilities to the platform, expanding Snowflake's addressable market into transactional workloads. Together, these product initiatives are expected to encourage enterprises to consolidate more of their data infrastructure within Snowflake’s ecosystem.
SNOW's Rich Partner Base Expands Market Reach
Snowflake maintains a strong partner ecosystem with Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) , NVIDIA (NVDA - Free Report) and major system integrators. The Microsoft alliance integrates OpenAI models into Cortex AI through Azure, extending features into Microsoft 365 and Teams. This collaboration positions Snowflake deeper within Microsoft’s enterprise productivity stack. The NVIDIA partnership combines Cortex AI with NVIDIA AI Enterprise, enabling customers to scale advanced AI applications. As GPU demand accelerates, alignment with NVIDIA strengthens Snowflake’s ability to deliver performance-driven workloads.
Amazon Web Services remains a critical pillar, with Snowflake supporting more than 6,000 joint customers across industries. The Amazon collaboration expands to secure workloads on AWS GovCloud, reinforcing Snowflake’s cloud-native positioning as enterprises consolidate data platforms.
Beyond core cloud partnerships, Snowflake is teaming with Acxiom to embed AI-powered marketing solutions directly into its environment, while customers like Canva highlight enterprise adoption.
SNOW Anticipates Upside for Q2 and FY26
For the second quarter of fiscal 2026, Snowflake expects product revenues in the range of $1.03-$1.04 billion. The projection range indicates year-over-year growth of 25%.
For fiscal 2026, Snowflake projects product revenues to grow 25% year over year to reach $4.32 billion.
The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is currently pegged at $1.09 billion, indicating 24.91% year-over-year growth. The consensus mark for earnings is currently pegged at 26 cents per share, unchanged over the past 30 days. This suggests an increase of 44.44% year over year.
Snowflake Inc. Price and Consensus
Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote
The consensus estimates for SNOW’s fiscal 2026 revenues is pegged at $4.52 billion, indicating year-over-year growth of 24.57%. The consensus mark for earnings is pegged at $1.06 per share, unchanged over the past 30 days. This suggests an increase of 27.71% on a year-over-year basis.
What Should Investors do With SNOW Stock?
Snowflake’s AI-driven portfolio expansion, growing enterprise adoption and strong partner ecosystem have kept momentum steady through 2025. However, with shares already trading at a premium relative to the industry, the stock appears to be pricing in much of the near-term upside. Investors may prefer to monitor how AI adoption and the Crunchy Data integration translate into sustained top-line acceleration before considering fresh positions.
SNOW currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favourable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.