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Snowflake (SNOW - Free Report) is benefiting from the rapid expansion of its AI portfolio, which is fueling significant revenue growth and positioning the company for further upside. In the first quarter of fiscal 2027, revenues were $1.39 billion, up 33% year over year. Product revenues reached $1.334 billion, marking a 34% year-over-year increase.
A key driver of this momentum is the introduction and rapid adoption of Snowflake Intelligence and Cortex Code (CoCo). In the fiscal first quarter, Snowflake delivered more than 20% more product capabilities than last year. This includes new features in CoCo and Snowflake Intelligence. These products are seeing the fastest uptake in Snowflake’s history, with CoCo already in use by more than 7,100 accounts and Snowflake Intelligence more than doubling quarter over quarter.
SNOW’s expanding portfolio has been noteworthy. The company recently unveiled a new open framework designed to make enterprise data and AI systems more interoperable. Announced at Snowflake Summit 2026, the framework enables organizations to access, govern, share and use data across platforms without duplicating or moving it.
Key additions include support for Apache Iceberg v3, Snowflake Storage for Apache Iceberg Tables and Horizon Catalog powered by Apache Polaris, providing centralized governance and cross-platform compatibility. The company says the framework helps businesses build AI applications on a single, trusted data foundation while reducing vendor lock-in. Customers such as Affirm, Indeed, NTT DOCOMO and Samsung Ads are already leveraging these capabilities.
Snowflake’s growing customer base, combined with its rapid product innovation, positions the company for continued upside. Snowflake expects fiscal second-quarter 2027 product revenues in the range of $1.415-$1.420 billion, implying 30% year-over-year growth.
SNOW Suffers From Stiff Competition
Snowflake is facing stiff competition from major players such as Alphabet (GOOGL - Free Report) and Oracle (ORCL - Free Report) . Both Alphabet and Oracle are expanding their footprint in the AI space.
In April 2026, Alphabet announced that Anthropic had expanded its collaboration with Google Cloud by deepening its use of Google’s custom Tensor Processing Units (TPUs) to train and deploy advanced AI models. The move highlights growing demand for specialized AI infrastructure, with Google positioning its TPUs as a key alternative to GPUs for large-scale model development and inference workloads.
Oracle’s expanding AI portfolio has been noteworthy. In April 2026, Oracle expanded AI capabilities in Oracle AI Database@Google Cloud, introducing Gemini-powered agents for natural language data access, enhancing enterprise insights, productivity and multicloud data innovation.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have gained 9.4% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s increase of 15.9%. However, it has underperformed the Internet Software industry which has declined 12.5% in the same time frame.
SNOW Stock Performance
Image Source: Zacks Investment Research
Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 12.6X compared with the Internet Software industry’s 3.71X. SNOW has a Value score of F.
SNOW Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.93 per share, which has increased 6.62% over the past 30 days. The figure indicates a 54.4% year-over-year increase.
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SNOW's Expanding AI Portfolio Fuels Revenue Growth: More Upside Ahead?
Key Takeaways
Snowflake (SNOW - Free Report) is benefiting from the rapid expansion of its AI portfolio, which is fueling significant revenue growth and positioning the company for further upside. In the first quarter of fiscal 2027, revenues were $1.39 billion, up 33% year over year. Product revenues reached $1.334 billion, marking a 34% year-over-year increase.
A key driver of this momentum is the introduction and rapid adoption of Snowflake Intelligence and Cortex Code (CoCo). In the fiscal first quarter, Snowflake delivered more than 20% more product capabilities than last year. This includes new features in CoCo and Snowflake Intelligence. These products are seeing the fastest uptake in Snowflake’s history, with CoCo already in use by more than 7,100 accounts and Snowflake Intelligence more than doubling quarter over quarter.
SNOW’s expanding portfolio has been noteworthy. The company recently unveiled a new open framework designed to make enterprise data and AI systems more interoperable. Announced at Snowflake Summit 2026, the framework enables organizations to access, govern, share and use data across platforms without duplicating or moving it.
Key additions include support for Apache Iceberg v3, Snowflake Storage for Apache Iceberg Tables and Horizon Catalog powered by Apache Polaris, providing centralized governance and cross-platform compatibility. The company says the framework helps businesses build AI applications on a single, trusted data foundation while reducing vendor lock-in. Customers such as Affirm, Indeed, NTT DOCOMO and Samsung Ads are already leveraging these capabilities.
Snowflake’s growing customer base, combined with its rapid product innovation, positions the company for continued upside. Snowflake expects fiscal second-quarter 2027 product revenues in the range of $1.415-$1.420 billion, implying 30% year-over-year growth.
SNOW Suffers From Stiff Competition
Snowflake is facing stiff competition from major players such as Alphabet (GOOGL - Free Report) and Oracle (ORCL - Free Report) . Both Alphabet and Oracle are expanding their footprint in the AI space.
In April 2026, Alphabet announced that Anthropic had expanded its collaboration with Google Cloud by deepening its use of Google’s custom Tensor Processing Units (TPUs) to train and deploy advanced AI models. The move highlights growing demand for specialized AI infrastructure, with Google positioning its TPUs as a key alternative to GPUs for large-scale model development and inference workloads.
Oracle’s expanding AI portfolio has been noteworthy. In April 2026, Oracle expanded AI capabilities in Oracle AI Database@Google Cloud, introducing Gemini-powered agents for natural language data access, enhancing enterprise insights, productivity and multicloud data innovation.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have gained 9.4% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s increase of 15.9%. However, it has underperformed the Internet Software industry which has declined 12.5% in the same time frame.
SNOW Stock Performance
Image Source: Zacks Investment Research
Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 12.6X compared with the Internet Software industry’s 3.71X. SNOW has a Value score of F.
SNOW Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.93 per share, which has increased 6.62% over the past 30 days. The figure indicates a 54.4% 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.