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Snowflake (SNOW - Free Report) is benefiting from a rapidly growing customer base. The company’s platform continues to gain adoption among large enterprises across industries. In the third quarter of fiscal 2026, SNOW reported 20% year-over-year growth in the number of customers, reaching 12,621. The company now has 688 customers with trailing 12-month product revenues greater than $1 million (up 29% year over year) and 766 Forbes Global 2000 customers.
A significant contributor to Snowflake’s success is its AI capabilities, which are rapidly gaining traction among enterprises. The company achieved a $100 million AI revenue run rate a quarter earlier than expected, driven by the adoption of its Snowflake Intelligence platform. In the fiscal third quarter of fiscal 2026, this product has seen rapid adoption, with 1,200 customers leveraging its capabilities to transform how businesses interact with their data.
The company’s strong partner base, which includes major players like SAP, Microsoft, Amazon’s cloud computing platform Amazon Web Services (AWS), NVIDIA, Meta Platform, ServiceNow, Fiserv, EY, LTMindtree, Next Pathway, and S&P Global, has been a significant growth driver of its success.
SNOW recently announced that it has surpassed $2 billion in Amazon Web Services Marketplace sales, doubling year-over-year growth as it strengthens its partnership with AWS. The company is also introducing new joint innovations with AWS, including Amazon Bedrock AgentCore integrations, catalog federation with AWS Glue, and expanded Iceberg V3 support. These developments aim to help businesses modernize their data platforms and create AI-ready, open, and interoperable architectures.
SNOW Faces 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.
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 growing rapidly in the booming cloud-computing market. Alphabet’s Google Cloud ended the third quarter of 2025 with $155 billion in backlog, up 46% sequentially. The number of new Google Cloud Platform customers increased by roughly 34% year over year, and 70% of Google Cloud customers now use Alphabet’s AI products.
Amazon continues to see strong demand for its cloud services. In the third quarter of 2025, Amazon’s cloud computing platform Amazon Web Services (AWS) signed new agreements with Delta Air Lines, Volkswagen Group, Fox Corporation, ServiceNow, Qantas Airways, the U.S. General Services Administration, SAP, lululemon, Live Nation, AXA, BT Group, Vonage, Upstage, Arm, Fundamental, Periodic Labs, Cursor, Perplexity, and Lila Sciences.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have lost 0.4% in the trailing six-month period, underperforming the broader Zacks Computer & Technology sector’s return of 20.1%. However, it has outperformed the Zacks Internet Software industry’s decline of 6.3%.
SNOW Stock's Performance
Image Source: Zacks Investment Research
Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 13.56X, compared with the Internet Software industry’s 4.86X. SNOW has a Value score of F.
SNOW Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2026 earnings is pegged at $1.20 per share, which has increased 2.56% over the past 30 days. The figure indicates a 44.58% year-over-year increase.
Image: Bigstock
Snowflake Rides on Growing Customer Base: More Upside Ahead?
Key Takeaways
Snowflake (SNOW - Free Report) is benefiting from a rapidly growing customer base. The company’s platform continues to gain adoption among large enterprises across industries. In the third quarter of fiscal 2026, SNOW reported 20% year-over-year growth in the number of customers, reaching 12,621. The company now has 688 customers with trailing 12-month product revenues greater than $1 million (up 29% year over year) and 766 Forbes Global 2000 customers.
A significant contributor to Snowflake’s success is its AI capabilities, which are rapidly gaining traction among enterprises. The company achieved a $100 million AI revenue run rate a quarter earlier than expected, driven by the adoption of its Snowflake Intelligence platform. In the fiscal third quarter of fiscal 2026, this product has seen rapid adoption, with 1,200 customers leveraging its capabilities to transform how businesses interact with their data.
The company’s strong partner base, which includes major players like SAP, Microsoft, Amazon’s cloud computing platform Amazon Web Services (AWS), NVIDIA, Meta Platform, ServiceNow, Fiserv, EY, LTMindtree, Next Pathway, and S&P Global, has been a significant growth driver of its success.
SNOW recently announced that it has surpassed $2 billion in Amazon Web Services Marketplace sales, doubling year-over-year growth as it strengthens its partnership with AWS. The company is also introducing new joint innovations with AWS, including Amazon Bedrock AgentCore integrations, catalog federation with AWS Glue, and expanded Iceberg V3 support. These developments aim to help businesses modernize their data platforms and create AI-ready, open, and interoperable architectures.
SNOW Faces 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.
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 growing rapidly in the booming cloud-computing market. Alphabet’s Google Cloud ended the third quarter of 2025 with $155 billion in backlog, up 46% sequentially. The number of new Google Cloud Platform customers increased by roughly 34% year over year, and 70% of Google Cloud customers now use Alphabet’s AI products.
Amazon continues to see strong demand for its cloud services. In the third quarter of 2025, Amazon’s cloud computing platform Amazon Web Services (AWS) signed new agreements with Delta Air Lines, Volkswagen Group, Fox Corporation, ServiceNow, Qantas Airways, the U.S. General Services Administration, SAP, lululemon, Live Nation, AXA, BT Group, Vonage, Upstage, Arm, Fundamental, Periodic Labs, Cursor, Perplexity, and Lila Sciences.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have lost 0.4% in the trailing six-month period, underperforming the broader Zacks Computer & Technology sector’s return of 20.1%. However, it has outperformed the Zacks Internet Software industry’s decline of 6.3%.
SNOW Stock's Performance
Image Source: Zacks Investment Research
Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 13.56X, compared with the Internet Software industry’s 4.86X. SNOW has a Value score of F.
SNOW Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2026 earnings is pegged at $1.20 per share, which has increased 2.56% over the past 30 days. The figure indicates a 44.58% year-over-year increase.
Snowflake Inc. Price and Consensus
Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote
Snowflake currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.