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SNOW Rides on Strong Enterprise AI Push: Can It Outpace AVGO and ORCL?
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Key Takeaways
Snowflake's Q2 fiscal 2027 product revenues surged 37% to $1.49B, driven by growing enterprise AI adoption.
SNOW raised its fiscal 2027 product revenue outlook to $6.07B, implying 36% year-over-year growth.
Snowflake shares gained 52.7% year to date, but its forward P/S ratio of 15.58X exceeds the industry's 4.06X.
Snowflake (SNOW - Free Report) is benefiting from accelerating enterprise adoption of artificial intelligence (AI), growing demand for cloud-based data platforms, and expanding AI-powered workloads. Its strong AI Data Cloud portfolio, rapid product innovation and enterprise partnerships strengthen its competitive positioning against Broadcom (AVGO - Free Report) and Oracle (ORCL - Free Report) .
Snowflake’s second-quarter fiscal 2027 results reflected this momentum, with product revenues increasing 37% year over year to $1.49 billion. The company added 692 net new customers, bringing its total customer base to 14,554. Its net revenue retention rate of 126% highlights healthy customer spending and growing adoption of AI-driven applications.
The company’s Cortex Code (CoCo) and Cortex Work (CoWork) offerings are gaining significant traction. CoCo surpassed 9,100 accounts, adding more than 2,000 during the quarter, while CoWork reached 5,800 accounts. Snowflake’s Cortex AI Gateway and Cortex Sense further strengthen its capabilities in model optimization, enterprise governance and agentic AI applications. These innovations are expected to drive higher platform consumption and customer engagement.
SNOW’s expanding portfolio has been noteworthy. In August 2026, Snowflake introduced dynamic model routing within Cortex AI Gateway and its flagship AI products to help enterprises improve AI cost efficiency. The capability automatically selects models based on factors including quality, speed, customer preferences and cost, routing simpler tasks to more efficient models and complex workloads to frontier models. Snowflake is also expanding Cortex AI with DeepSeek-V4-Flash 0731 and GLM-5.3, broadening customers’ model choices. Additionally, new tools let enterprises monitor AI usage, allocate costs and set quotas and spending limits, supporting greater control as deployments scale.
SNOW’s accelerating customer adoption and robust pipeline of AI-driven products are expected to strengthen its competitive position against Broadcom and Oracle. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth 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.
How Competitors Fare Against SNOW
Snowflake is facing stiff competition from major players like Broadcom and Oracle. Both companies are expanding their footprint in AI.
Broadcom is benefiting from growing enterprise AI demand, which is creating opportunities across its semiconductor and infrastructure software businesses. The company’s AI semiconductor revenues surged 221% year over year to $16.7 billion in the third quarter of fiscal 2026, driven by strong demand for custom XPUs and AI networking solutions. AVGO expects fourth-quarter fiscal 2026 AI revenues of $21.7 billion, up 236% year over year, taking fiscal 2026 AI revenues to roughly $58 billion.
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 52.7% year to date, outperforming the broader Zacks Computer & Technology sector’s 14.9% appreciation. The Internet Software industry has increased 1.7% 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 15.58X compared with the Internet Software industry’s 4.06X. 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 $2.23 per share, which has increased 1.82% over the past 30 days. The figure indicates a 78.40% year-over-year increase.
View the Zacks #1 Rank List
Image: Shutterstock
SNOW Rides on Strong Enterprise AI Push: Can It Outpace AVGO and ORCL?
Key Takeaways
Snowflake (SNOW - Free Report) is benefiting from accelerating enterprise adoption of artificial intelligence (AI), growing demand for cloud-based data platforms, and expanding AI-powered workloads. Its strong AI Data Cloud portfolio, rapid product innovation and enterprise partnerships strengthen its competitive positioning against Broadcom (AVGO - Free Report) and Oracle (ORCL - Free Report) .
Snowflake’s second-quarter fiscal 2027 results reflected this momentum, with product revenues increasing 37% year over year to $1.49 billion. The company added 692 net new customers, bringing its total customer base to 14,554. Its net revenue retention rate of 126% highlights healthy customer spending and growing adoption of AI-driven applications.
The company’s Cortex Code (CoCo) and Cortex Work (CoWork) offerings are gaining significant traction. CoCo surpassed 9,100 accounts, adding more than 2,000 during the quarter, while CoWork reached 5,800 accounts. Snowflake’s Cortex AI Gateway and Cortex Sense further strengthen its capabilities in model optimization, enterprise governance and agentic AI applications. These innovations are expected to drive higher platform consumption and customer engagement.
SNOW’s expanding portfolio has been noteworthy. In August 2026, Snowflake introduced dynamic model routing within Cortex AI Gateway and its flagship AI products to help enterprises improve AI cost efficiency. The capability automatically selects models based on factors including quality, speed, customer preferences and cost, routing simpler tasks to more efficient models and complex workloads to frontier models. Snowflake is also expanding Cortex AI with DeepSeek-V4-Flash 0731 and GLM-5.3, broadening customers’ model choices. Additionally, new tools let enterprises monitor AI usage, allocate costs and set quotas and spending limits, supporting greater control as deployments scale.
SNOW’s accelerating customer adoption and robust pipeline of AI-driven products are expected to strengthen its competitive position against Broadcom and Oracle. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth 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.
How Competitors Fare Against SNOW
Snowflake is facing stiff competition from major players like Broadcom and Oracle. Both companies are expanding their footprint in AI.
Broadcom is benefiting from growing enterprise AI demand, which is creating opportunities across its semiconductor and infrastructure software businesses. The company’s AI semiconductor revenues surged 221% year over year to $16.7 billion in the third quarter of fiscal 2026, driven by strong demand for custom XPUs and AI networking solutions. AVGO expects fourth-quarter fiscal 2026 AI revenues of $21.7 billion, up 236% year over year, taking fiscal 2026 AI revenues to roughly $58 billion.
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 52.7% year to date, outperforming the broader Zacks Computer & Technology sector’s 14.9% appreciation. The Internet Software industry has increased 1.7% 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 15.58X compared with the Internet Software industry’s 4.06X. 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 $2.23 per share, which has increased 1.82% over the past 30 days. The figure indicates a 78.40% 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.