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SNOW Benefits From Expanding Partner Base: A Sign for More Upside?

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Key Takeaways

  • Snowflake added 533 customers, including 15 Global 2000 firms, in Q2 fiscal 2026.
  • Partnerships with Azure, AWS, and Google Cloud are boosting SNOW's global cloud adoption.
  • A new Palantir partnership integrates SNOW's AI Data Cloud with Palantir's Foundry and AIP.

Snowflake (SNOW - Free Report) is benefiting from expanding customer footprint, continued platform innovation, and a strong ecosystem of partners, which provides a solid foundation for long-term growth. 

SNOW’s platform continues to gain adoption among large enterprises across industries. SNOW added 533 customers, including 15 Global 2000 companies, in the second quarter of fiscal 2026. Net new customer additions in the reported quarter increased 21% year over year, and 50 customers crossed the $1 million in trailing 12-month revenues. More than $1 million in customers reached 654. 

The company collaborates with major cloud providers like Microsoft Azure, AWS, and Google Cloud, as well as system integrators and technology innovators. These partnerships enhance its reach and drive adoption. 

The company’s partnerships with major cloud providers, such as Microsoft Azure, are also driving growth in cloud analytics. Azure was the fastest-growing cloud for Snowflake in the second quarter of fiscal 2026, with 40% year-over-year growth, underscoring the company’s ability to integrate with cloud ecosystems and expand its global reach.

Increasing demand for enterprise AI solutions has been a game-changer for Snowflake. The company recently announced a partnership with Palantir to integrate its AI Data Cloud with Palantir’s Foundry and AIP platforms. This will help joint customers like Eaton create unified, AI-driven data systems. These systems will improve operational efficiency, accelerate AI application development, and enhance customer experience through reliable, zero-copy data interoperability.

Snowflake Suffers From Stiff Competition

Snowflake is facing stiff competition from the likes of major players like Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) in the cloud data and analytics space.

Amazon continues to see strong demand for its cloud services, driven by enterprises accelerating their migration from on-premises to the cloud and leveraging generative AI capabilities. In the second quarter of 2025, Amazon’s cloud computing platform, Amazon Web Services, supported organizations of all sizes as they transitioned to the cloud, securing agreements with major companies, such as PepsiCo, Airbnb, Peloton, NASDAQ, and Nissan Motor.

Alphabet is growing its presence in the cloud analytics market with its cloud computing platform, Google Cloud’s BigQuery, a powerful serverless data warehouse solution. The company is also benefiting from its partnership with NVIDIA in the cloud. Alphabet’s Google Cloud was the first cloud provider to offer NVIDIA’s B200 and GB200 Blackwell GPUs and will be offering its next-generation Vera Rubin GPUs.

SNOW’s Share Price Performance, Valuation, and Estimates

Snowflake shares have appreciated 59.1% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 23% and the Zacks Internet Software industry’s growth of 16.4%.

SNOW Stock Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Snowflake stock is trading at a premium, with a forward 12-month Price/Sales of 15.58X compared with the Internet Software industry’s 5.45X. SNOW has a Value score of F.

Price/Sales (F12M)

Zacks Investment Research
Image Source: Zacks Investment Research

The consensus mark for SNOW’s fiscal 2026 earnings is pegged at $1.17 per share, unchanged over the past 30 days. The figure indicates a 40.96% increase year over year. 

Snowflake currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.


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