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Snowflake (SNOW - Free Report) is benefiting from its strong focus on the AI Data Cloud, which is rapidly becoming a key catalyst of its growth thesis. This is also driving strong customer adoption and revenue growth. In the fiscal fourth quarter of 2026, Snowflake reported product revenue growth of 30% year over year, reaching $1.23 billion. Remaining performance obligations (RPO) accelerated to $9.77 billion, up 42% year over year, and net revenue retention remained strong at 125%.
The company’s AI-driven products, particularly Snowflake Intelligence and Cortex Code, have been a major growth driver. In fiscal 2026, Snowflake Intelligence, which provides enterprise-grade agent capabilities, has been adopted by more than 2,500 accounts within just three months of its launch, nearly doubling quarter over quarter. Cortex Code, a transformational coding agent, has been embraced by more than 4,400 customers, enabling faster development and deployment of AI-powered applications.
In fiscal 2026, Snowflake added 2,332 net new customers, including major enterprises like Seagate, Capital One, Toyota Motor Europe, and United Rentals. These organizations are leveraging Snowflake’s AI Data Cloud to modernize data foundations, unify proprietary data, and deploy AI-driven analytics and agents at scale.
Further expanding its portfolio, in April 2026, Snowflake announced major updates to Snowflake Intelligence and Cortex Code, advancing its vision of becoming the control plane for the agentic enterprise. These enhancements enable businesses to connect data, tools and AI systems seamlessly, allowing intelligent agents to automate workflows and deliver deeper, context-driven insights. The updates also expand AI-powered development capabilities, helping organizations build, manage and scale enterprise AI directly within their existing ecosystems.
SNOW’s innovative portfolio and expanding customer base are expected to drive the company’s top-line growth. For the first quarter of fiscal 2027, Snowflake expects product revenues in the range of $1.262-$1.267 billion. The projection range indicates year-over-year growth of 27%.
SNOW Suffers From Stiff Competition
Snowflake is facing stiff competition from major players such as Oracle (ORCL - Free Report) and Amazon (AMZN - Free Report) . Both Oracle and Amazon are expanding their footprints in the cloud analytics space.
Oracle’s expanding portfolio has been noteworthy. In April 2026, Oracle expanded AI capabilities in Oracle AI Database@Google Cloud by introducing Gemini-powered agents for natural-language data access, enhancing enterprise insights, productivity, and multicloud data innovation.
Amazon’s AI initiatives gained significant momentum during the first quarter of 2026. Amazon’s cloud computing platform, Amazon Web Services’ chips business, including Graviton, Trainium, and Nitro, exceeded a $20 billion annual revenue run rate and is growing triple-digit percentages year over year.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have lost 30.7% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s increase of 16.4% and the Internet Software industry’s decline of 14.6%
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 8.36X compared with the Internet Software industry’s 3.67X. SNOW has a Value Score of F.
SNOW's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.81 per share, which has been unchanged over the past 30 days. The figure indicates a 44.8% year-over-year increase.
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Snowflake's AI Data Cloud Expands: Is Growth Thesis Strengthening?
Key Takeaways
Snowflake (SNOW - Free Report) is benefiting from its strong focus on the AI Data Cloud, which is rapidly becoming a key catalyst of its growth thesis. This is also driving strong customer adoption and revenue growth. In the fiscal fourth quarter of 2026, Snowflake reported product revenue growth of 30% year over year, reaching $1.23 billion. Remaining performance obligations (RPO) accelerated to $9.77 billion, up 42% year over year, and net revenue retention remained strong at 125%.
The company’s AI-driven products, particularly Snowflake Intelligence and Cortex Code, have been a major growth driver. In fiscal 2026, Snowflake Intelligence, which provides enterprise-grade agent capabilities, has been adopted by more than 2,500 accounts within just three months of its launch, nearly doubling quarter over quarter. Cortex Code, a transformational coding agent, has been embraced by more than 4,400 customers, enabling faster development and deployment of AI-powered applications.
In fiscal 2026, Snowflake added 2,332 net new customers, including major enterprises like Seagate, Capital One, Toyota Motor Europe, and United Rentals. These organizations are leveraging Snowflake’s AI Data Cloud to modernize data foundations, unify proprietary data, and deploy AI-driven analytics and agents at scale.
Further expanding its portfolio, in April 2026, Snowflake announced major updates to Snowflake Intelligence and Cortex Code, advancing its vision of becoming the control plane for the agentic enterprise. These enhancements enable businesses to connect data, tools and AI systems seamlessly, allowing intelligent agents to automate workflows and deliver deeper, context-driven insights. The updates also expand AI-powered development capabilities, helping organizations build, manage and scale enterprise AI directly within their existing ecosystems.
SNOW’s innovative portfolio and expanding customer base are expected to drive the company’s top-line growth. For the first quarter of fiscal 2027, Snowflake expects product revenues in the range of $1.262-$1.267 billion. The projection range indicates year-over-year growth of 27%.
SNOW Suffers From Stiff Competition
Snowflake is facing stiff competition from major players such as Oracle (ORCL - Free Report) and Amazon (AMZN - Free Report) . Both Oracle and Amazon are expanding their footprints in the cloud analytics space.
Oracle’s expanding portfolio has been noteworthy. In April 2026, Oracle expanded AI capabilities in Oracle AI Database@Google Cloud by introducing Gemini-powered agents for natural-language data access, enhancing enterprise insights, productivity, and multicloud data innovation.
Amazon’s AI initiatives gained significant momentum during the first quarter of 2026. Amazon’s cloud computing platform, Amazon Web Services’ chips business, including Graviton, Trainium, and Nitro, exceeded a $20 billion annual revenue run rate and is growing triple-digit percentages year over year.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have lost 30.7% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s increase of 16.4% and the Internet Software industry’s decline of 14.6%
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 8.36X compared with the Internet Software industry’s 3.67X. SNOW has a Value Score of F.
SNOW's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.81 per share, which has been unchanged over the past 30 days. The figure indicates a 44.8% 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.