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Snowflake vs. Adobe: Which Enterprise AI Stock Is a Better Buy?
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Key Takeaways
Snowflake is better positioned as enterprise AI adoption drives stronger growth and customer expansion.
SNOW's product revenues rose 37% to $1.49B, while CoCo surpassed 9,100 accounts in fiscal Q2.
Adobe faces slower near-term monetization and moderating RPO growth despite expanding its AI portfolio.
Snowflake (SNOW - Free Report) and Adobe (ADBE - Free Report) are major players in enterprise software, with both companies increasingly integrating AI across their platforms. Snowflake focuses on providing a unified enterprise data and AI platform, while Adobe is expanding generative and agentic AI across its creative, document and digital experience products.
Snowflake or Adobe— Which of these Enterprise AI stocks has the greater upside potential? Let’s find out.
The Case for SNOW Stock
Snowflake is benefiting from a strong enterprise AI push as organizations increasingly use its AI Data Cloud to modernize data estates, deploy agents and automate business workflows. This momentum helped product revenues rise 37% year over year to $1.49 billion in the second quarter of fiscal 2027, accounting for 96% of total revenues and marking another quarter of accelerating growth.
Enterprise expansion remains another key catalyst. In the second quarter of fiscal 2027, SNOW had 14,554 total customers after adding 692 net new customers, a 32% year-over-year increase in net additions. The company added 14 Forbes Global 2000 customers, taking that total to 829. Large-customer momentum remained strong, with 828 customers generating more than $1 million in trailing 12-month product revenues, up 27% year over year. Another 65 customers exceeded $10 million in trailing product revenues.
The adoption of Snowflake’s AI offerings remains noteworthy. In the second quarter of fiscal 2027, CoCo surpassed 9,100 accounts after adding more than 2,000 during the quarter, while CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Customers, including 1Password and Indeed, are deploying these solutions to accelerate data and AI initiatives.
Snowflake’s expanding AI portfolio has been noteworthy. The company has rapidly broadened its suite of AI-powered products, including CoCo and CoWork, which are seeing strong adoption across a diverse customer base. The company launched more than 330 generally available product capabilities during the first half, including Cortex Sense and Cortex AI Gateway, strengthening its ability to offer governed AI, model choice and agentic workflows.
The Case for ADBE Stock
Adobe is benefiting from strong enterprise AI adoption, which is fueling its growth prospects across creativity, productivity and customer experience. More than 20,000 global enterprises rely on Adobe, while the company’s AI-first ending ARR exceeded $650 million in the third quarter of fiscal 2026, increasing more than 150% year over year. The company’s deep integration of AI across Adobe’s product suite, including Acrobat, Creative Cloud, Firefly and the Adobe Experience Platform, has been a major growth driver.
Enterprise momentum is particularly strong within Adobe’s Customer Experience portfolio. Adobe Experience Manager and agentic web applications, Adobe GenStudio and Adobe Experience Platform and applications each recorded ending ARR growth of more than 20% year over year in the fiscal third quarter. CX Enterprise Coworker, which became generally available in June, has already attracted more than 1,700 customers and early adopters, highlighting demand for AI agents that automate marketing, analytics and customer-engagement workflows.
Adobe is also witnessing an increasing number of enterprises adopting Firefly. In the fiscal third quarter of 2026, revenues from the Firefly App and credit packs rose 40% from the previous quarter, with usage increasing as well in Creative Cloud and Firefly. Among the enterprise customers were Disney, Publicis, T-Mobile and the Premier League.
Adobe is also strengthening the AI capabilities supporting enterprise adoption. In the third quarter of fiscal 2026, Adobe announced an agreement to acquire Topaz Labs, whose AI enhancement models are expected to be integrated across Firefly, Firefly Services and Creative Cloud applications. The transaction is expected to close in the fourth quarter, subject to regulatory approvals and customary conditions.
Price Performance and Valuation of SNOW and ADBE
In the year-to-date period, SNOW shares have rallied 47.2%, outperforming Adobe’s shares, which have plunged 26.4%. The outperformance of SNOW can be attributed to the company’s strong adoption and increasing usage of its platform, as reflected by the net revenue retention rate of 126% in the second quarter of fiscal 2027.
Despite expanding portfolio, Adobe is being hurt by slower near-term monetization as it prioritizes freemium user acquisition and delays Creative Cloud pricing actions, contributing to weaker net new ARR growth. Remaining Performance Obligations (RPO) growth has also moderated, while a slight FX headwind is expected in the fourth quarter of fiscal 2026.
SNOW and ADBE Stock Performance
Image Source: Zacks Investment Research
SNOW’s shares are currently overvalued, as suggested by a Value Score of F. ADBE’s shares are cheap, as suggested by a Value Score of B.
In terms of forward 12-month Price/Sales, SNOW shares are trading at 15.49X, higher than ADBE’s 3.61X.
SNOW and ADBE Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for SNOW & ADBE?
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $2.19 per share, which has increased 11.16% over the past 30 days. This indicates a 75.20% increase year over year.
The Zacks Consensus Estimate for ADBE’s fiscal 2026 earnings is pegged at $24.46 per share, which has increased 0.28% over the past 30 days. This indicates a 16.81% increase year over year.
SNOW’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 22.77%. ADBE’s earnings beat the consensus mark in all the trailing four quarters, delivering an average surprise of 2.04%. The average surprise of Snowflake is higher than that of Adobe.
Conclusion
While both Snowflake and Adobe are benefiting from rising enterprise AI adoption, Snowflake appears better positioned, supported by stronger growth, accelerating AI usage, robust customer expansion and improving earnings estimates. These factors have justified its premium valuation.
Despite Adobe’s expanding AI portfolio and strong enterprise reach, slower near-term monetization, moderating RPO growth and weaker share-price performance remain key concerns.
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Snowflake vs. Adobe: Which Enterprise AI Stock Is a Better Buy?
Key Takeaways
Snowflake (SNOW - Free Report) and Adobe (ADBE - Free Report) are major players in enterprise software, with both companies increasingly integrating AI across their platforms. Snowflake focuses on providing a unified enterprise data and AI platform, while Adobe is expanding generative and agentic AI across its creative, document and digital experience products.
Snowflake or Adobe— Which of these Enterprise AI stocks has the greater upside potential? Let’s find out.
The Case for SNOW Stock
Snowflake is benefiting from a strong enterprise AI push as organizations increasingly use its AI Data Cloud to modernize data estates, deploy agents and automate business workflows. This momentum helped product revenues rise 37% year over year to $1.49 billion in the second quarter of fiscal 2027, accounting for 96% of total revenues and marking another quarter of accelerating growth.
Enterprise expansion remains another key catalyst. In the second quarter of fiscal 2027, SNOW had 14,554 total customers after adding 692 net new customers, a 32% year-over-year increase in net additions. The company added 14 Forbes Global 2000 customers, taking that total to 829. Large-customer momentum remained strong, with 828 customers generating more than $1 million in trailing 12-month product revenues, up 27% year over year. Another 65 customers exceeded $10 million in trailing product revenues.
The adoption of Snowflake’s AI offerings remains noteworthy. In the second quarter of fiscal 2027, CoCo surpassed 9,100 accounts after adding more than 2,000 during the quarter, while CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Customers, including 1Password and Indeed, are deploying these solutions to accelerate data and AI initiatives.
Snowflake’s expanding AI portfolio has been noteworthy. The company has rapidly broadened its suite of AI-powered products, including CoCo and CoWork, which are seeing strong adoption across a diverse customer base. The company launched more than 330 generally available product capabilities during the first half, including Cortex Sense and Cortex AI Gateway, strengthening its ability to offer governed AI, model choice and agentic workflows.
The Case for ADBE Stock
Adobe is benefiting from strong enterprise AI adoption, which is fueling its growth prospects across creativity, productivity and customer experience. More than 20,000 global enterprises rely on Adobe, while the company’s AI-first ending ARR exceeded $650 million in the third quarter of fiscal 2026, increasing more than 150% year over year. The company’s deep integration of AI across Adobe’s product suite, including Acrobat, Creative Cloud, Firefly and the Adobe Experience Platform, has been a major growth driver.
Enterprise momentum is particularly strong within Adobe’s Customer Experience portfolio. Adobe Experience Manager and agentic web applications, Adobe GenStudio and Adobe Experience Platform and applications each recorded ending ARR growth of more than 20% year over year in the fiscal third quarter. CX Enterprise Coworker, which became generally available in June, has already attracted more than 1,700 customers and early adopters, highlighting demand for AI agents that automate marketing, analytics and customer-engagement workflows.
Adobe is also witnessing an increasing number of enterprises adopting Firefly. In the fiscal third quarter of 2026, revenues from the Firefly App and credit packs rose 40% from the previous quarter, with usage increasing as well in Creative Cloud and Firefly. Among the enterprise customers were Disney, Publicis, T-Mobile and the Premier League.
Adobe is also strengthening the AI capabilities supporting enterprise adoption. In the third quarter of fiscal 2026, Adobe announced an agreement to acquire Topaz Labs, whose AI enhancement models are expected to be integrated across Firefly, Firefly Services and Creative Cloud applications. The transaction is expected to close in the fourth quarter, subject to regulatory approvals and customary conditions.
Price Performance and Valuation of SNOW and ADBE
In the year-to-date period, SNOW shares have rallied 47.2%, outperforming Adobe’s shares, which have plunged 26.4%. The outperformance of SNOW can be attributed to the company’s strong adoption and increasing usage of its platform, as reflected by the net revenue retention rate of 126% in the second quarter of fiscal 2027.
Despite expanding portfolio, Adobe is being hurt by slower near-term monetization as it prioritizes freemium user acquisition and delays Creative Cloud pricing actions, contributing to weaker net new ARR growth. Remaining Performance Obligations (RPO) growth has also moderated, while a slight FX headwind is expected in the fourth quarter of fiscal 2026.
SNOW and ADBE Stock Performance
Image Source: Zacks Investment Research
SNOW’s shares are currently overvalued, as suggested by a Value Score of F. ADBE’s shares are cheap, as suggested by a Value Score of B.
In terms of forward 12-month Price/Sales, SNOW shares are trading at 15.49X, higher than ADBE’s 3.61X.
SNOW and ADBE Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for SNOW & ADBE?
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $2.19 per share, which has increased 11.16% over the past 30 days. This indicates a 75.20% increase year over year.
Snowflake Inc. Price and Consensus
Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote
The Zacks Consensus Estimate for ADBE’s fiscal 2026 earnings is pegged at $24.46 per share, which has increased 0.28% over the past 30 days. This indicates a 16.81% increase year over year.
Adobe Inc. Price and Consensus
Adobe Inc. price-consensus-chart | Adobe Inc. Quote
SNOW’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 22.77%. ADBE’s earnings beat the consensus mark in all the trailing four quarters, delivering an average surprise of 2.04%. The average surprise of Snowflake is higher than that of Adobe.
Conclusion
While both Snowflake and Adobe are benefiting from rising enterprise AI adoption, Snowflake appears better positioned, supported by stronger growth, accelerating AI usage, robust customer expansion and improving earnings estimates. These factors have justified its premium valuation.
Despite Adobe’s expanding AI portfolio and strong enterprise reach, slower near-term monetization, moderating RPO growth and weaker share-price performance remain key concerns.
Currently, Snowflake carries a Zacks Rank #2 (Buy), making the stock a stronger pick than Adobe, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.