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Snowflake (SNOW - Free Report) is benefiting from accelerating product revenue growth, rising AI adoption, and expanding consumption of its AI Data Cloud. This momentum strengthens the company’s position in enterprise data and AI markets while improving its ability to compete for technology spending against Dell Technologies (DELL - Free Report) and Oracle (ORCL - Free Report) . The company’s fiscal second-quarter performance was driven by consumption across its core platform, with product revenues representing the majority of results. Product revenues rose 37% to $1.49 billion and accounted for 96% of total revenues in the fiscal second quarter 2026.
SNOW’s accelerating product revenue reflects strength across both its core platform and newer AI offerings. Management noted that AI products contributed roughly half of the recent acceleration, while faster migrations and expanding workloads also supported growth. CoCo surpassed 9,100 accounts after adding more than 2,000 during the second quarter of fiscal 2027, while CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Snowflake is also seeing AI adoption drive greater consumption of its core platform, creating a flywheel in which customers adopting AI services increasingly use Snowflake’s broader data capabilities.
Enterprise expansion remains another key catalyst. In the second quarter of fiscal 2027, SNOW had 14,554 total customers, up 32% year over year, after adding 692 net new customers. 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.
SNOW’s accelerating customer adoption and a robust pipeline of AI-driven products are expected to support SNOW’s competitive position against Dell Technologies and Oracle. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth, up from its previous outlook of $5.84 billion and 31% growth. Fiscal third-quarter product revenues are expected to be between $1.588 billion and $1.593 billion, indicating 37-38% growth year over year.
How Competitors Fare Against SNOW
Snowflake is facing stiff competition from major players like Dell Technologies and Oracle. Both companies are expanding their footprint in the AI space.
Dell Technologies is benefiting from surging demand for AI infrastructure. The company continues to see AI server demand exceed available supply as customers expand deployments across neocloud, sovereign and enterprise environments. In the second quarter of fiscal 2027, Dell Technologies booked a record $60.9 billion of AI orders and recognized $16.4 billion of AI server revenues. Orders totaled $131.7 billion over the past 12 months, while backlog rose to $95 billion from $51.3 billion at the first quarter of fiscal 2027-end.
Oracle’s expanding portfolio has been noteworthy. In June 2026, Oracle introduced Oracle OPERA Cloud Assistant, a suite of AI-powered capabilities built into OPERA Cloud that automates guest room assignments, generates AI-driven rate descriptions, supports multilingual operations across 230 countries and territories and gives hotel staff real-time operational guidance.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have gained 54.3% year to date, outperforming the broader Zacks Computer & Technology sector’s 16.9% appreciation. The Internet Software industry has increased 3% 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 16.21X compared with the Internet Software industry’s 4.2X. 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 $2.19 per share, which has increased 11.16% over the past 30 days. The figure indicates a 75.20% year-over-year increase.
View the Zacks #1 Rank List
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Snowflake's Product Revenue Accelerates: Can It Outpace DELL & ORCL?
Key Takeaways
Snowflake (SNOW - Free Report) is benefiting from accelerating product revenue growth, rising AI adoption, and expanding consumption of its AI Data Cloud. This momentum strengthens the company’s position in enterprise data and AI markets while improving its ability to compete for technology spending against Dell Technologies (DELL - Free Report) and Oracle (ORCL - Free Report) . The company’s fiscal second-quarter performance was driven by consumption across its core platform, with product revenues representing the majority of results. Product revenues rose 37% to $1.49 billion and accounted for 96% of total revenues in the fiscal second quarter 2026.
SNOW’s accelerating product revenue reflects strength across both its core platform and newer AI offerings. Management noted that AI products contributed roughly half of the recent acceleration, while faster migrations and expanding workloads also supported growth. CoCo surpassed 9,100 accounts after adding more than 2,000 during the second quarter of fiscal 2027, while CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Snowflake is also seeing AI adoption drive greater consumption of its core platform, creating a flywheel in which customers adopting AI services increasingly use Snowflake’s broader data capabilities.
Enterprise expansion remains another key catalyst. In the second quarter of fiscal 2027, SNOW had 14,554 total customers, up 32% year over year, after adding 692 net new customers. 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.
SNOW’s accelerating customer adoption and a robust pipeline of AI-driven products are expected to support SNOW’s competitive position against Dell Technologies and Oracle. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth, up from its previous outlook of $5.84 billion and 31% growth. Fiscal third-quarter product revenues are expected to be between $1.588 billion and $1.593 billion, indicating 37-38% growth year over year.
How Competitors Fare Against SNOW
Snowflake is facing stiff competition from major players like Dell Technologies and Oracle. Both companies are expanding their footprint in the AI space.
Dell Technologies is benefiting from surging demand for AI infrastructure. The company continues to see AI server demand exceed available supply as customers expand deployments across neocloud, sovereign and enterprise environments. In the second quarter of fiscal 2027, Dell Technologies booked a record $60.9 billion of AI orders and recognized $16.4 billion of AI server revenues. Orders totaled $131.7 billion over the past 12 months, while backlog rose to $95 billion from $51.3 billion at the first quarter of fiscal 2027-end.
Oracle’s expanding portfolio has been noteworthy. In June 2026, Oracle introduced Oracle OPERA Cloud Assistant, a suite of AI-powered capabilities built into OPERA Cloud that automates guest room assignments, generates AI-driven rate descriptions, supports multilingual operations across 230 countries and territories and gives hotel staff real-time operational guidance.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have gained 54.3% year to date, outperforming the broader Zacks Computer & Technology sector’s 16.9% appreciation. The Internet Software industry has increased 3% 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 16.21X compared with the Internet Software industry’s 4.2X. 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 $2.19 per share, which has increased 11.16% over the past 30 days. The figure indicates a 75.20% year-over-year increase.
Snowflake Inc. Price and Consensus
Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote
Snowflake currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.