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The company’s shares have also outperformed its peers, including major players like Oracle (ORCL - Free Report) , Broadcom (AVGO - Free Report) and Amazon (AMZN - Free Report) , which are also expanding their footprint in the AI space. While Oracle and AVGO shares have plunged 36.5% and 6%, respectively, Amazon shares have gained 15.2% year to date.
The outperformance can be attributed to SNOW’s strong AI adoption and increasing usage of its platform, as reflected by the net revenue retention rate of 126% in the second quarter of fiscal 2027. These factors are helping SNOW fend off competitors like Oracle, Broadcom and Amazon.
SNOW Stock Performance
Image Source: Zacks Investment Research
SNOW Benefits From Expanding AI Portfolio
Snowflake is benefiting from an expanding AI portfolio. 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.
Building on this momentum, the company recently introduced major enhancements to its CoCo coding agent and CoWork personal AI agent, enabling enterprises to automate complex workflows using governed business data. The new always-on CoCo and CoWork Bots autonomously execute tasks, requiring human intervention only for critical decisions or approvals.
The innovations support integrations with Slack, Excel, Google Sheets and mobile devices, while introducing automation, memory and shared AI workflows. Snowflake also unveiled Cortex Training for customizing AI models and optimizing costs. CoWork is used by more than 5,800 accounts, while CoCo serves more than 9,100 accounts.
Further expanding its enterprise AI portfolio, Snowflake introduced new AI capabilities designed to help enterprises deploy autonomous agents with trusted business context, enhanced security, and centralized governance. The new Business Ontology feature within Snowflake Horizon Catalog enables AI agents to access consistent, pre-approved business definitions, improving accuracy and reliability. The company also expanded Cortex AI Gateway to provide unified controls for agent activities, model access, security, compliance and spending. Additional capabilities include Cortex Sandboxes, Agent Abuse Detection and Dynamic Model Routing. Enterprises including Glean and Kargo are leveraging Cortex AI Gateway, while dentsu and Merkle are adopting Business Ontology to strengthen AI-driven operations.
Strong AI demand is improving Snowflake’s financial outlook. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth compared with the 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.
SNOW Benefits From Expanding Customer Base
Snowflake is benefiting from an expanding customer base, strong adoption among large enterprises and rising consumption across its AI Data Cloud. 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 also added 14 Forbes Global 2000 customers, taking the total to 829, or more than 41% of the Global 2000.
Snowflake is also witnessing deeper engagement from existing customers. 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.
Sustained customer additions, deeper enterprise penetration and increasing AI adoption are expected to support Snowflake’s growth prospects. In the second quarter of 2026, remaining performance obligations increased 30% year over year to $9 billion, with roughly 54% expected to be recognized as revenue over the next 12 months.
SNOW Offers Positive Guidance
Snowflake’s rich customer base and innovative AI portfolio are expected to drive the company’s top-line growth.
The Zacks Consensus Estimate for fiscal third-quarter revenues is currently pegged at $1.65 billion, indicating 36.08% year-over-year growth.
The consensus mark for earnings is currently pegged at 60 cents per share, which has been unchanged over the past 30 days. This suggests an increase of 71.43% year over year.
Snowflake shares are currently overvalued, as suggested by its Value Score of F.
SNOW stock is trading at a premium with a forward 12-month Price/Sales of 13.44X compared with the Internet Software industry’s 3.8X.
SNOW Valuation
Image Source: Zacks Investment Research
Conclusion
Snowflake’s accelerating AI adoption, strong enterprise momentum and raised product revenue guidance support a positive outlook for the stock. These factors have justified its premium valuation.
View the Zacks #1 Rank List
Image: Bigstock
Snowflake Soars 32% Year to Date: Buy, Sell, or Hold the Stock?
Key Takeaways
Snowflake (SNOW - Free Report) shares have gained 32.5% year to date, outperforming the Zacks Computer and Technology sector’s 9% gain and the Zacks Internet Software industry’s 3.5% decline.
The company’s shares have also outperformed its peers, including major players like Oracle (ORCL - Free Report) , Broadcom (AVGO - Free Report) and Amazon (AMZN - Free Report) , which are also expanding their footprint in the AI space. While Oracle and AVGO shares have plunged 36.5% and 6%, respectively, Amazon shares have gained 15.2% year to date.
The outperformance can be attributed to SNOW’s strong AI adoption and increasing usage of its platform, as reflected by the net revenue retention rate of 126% in the second quarter of fiscal 2027. These factors are helping SNOW fend off competitors like Oracle, Broadcom and Amazon.
SNOW Stock Performance
Image Source: Zacks Investment Research
SNOW Benefits From Expanding AI Portfolio
Snowflake is benefiting from an expanding AI portfolio. 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.
Building on this momentum, the company recently introduced major enhancements to its CoCo coding agent and CoWork personal AI agent, enabling enterprises to automate complex workflows using governed business data. The new always-on CoCo and CoWork Bots autonomously execute tasks, requiring human intervention only for critical decisions or approvals.
The innovations support integrations with Slack, Excel, Google Sheets and mobile devices, while introducing automation, memory and shared AI workflows. Snowflake also unveiled Cortex Training for customizing AI models and optimizing costs. CoWork is used by more than 5,800 accounts, while CoCo serves more than 9,100 accounts.
Further expanding its enterprise AI portfolio, Snowflake introduced new AI capabilities designed to help enterprises deploy autonomous agents with trusted business context, enhanced security, and centralized governance. The new Business Ontology feature within Snowflake Horizon Catalog enables AI agents to access consistent, pre-approved business definitions, improving accuracy and reliability. The company also expanded Cortex AI Gateway to provide unified controls for agent activities, model access, security, compliance and spending. Additional capabilities include Cortex Sandboxes, Agent Abuse Detection and Dynamic Model Routing. Enterprises including Glean and Kargo are leveraging Cortex AI Gateway, while dentsu and Merkle are adopting Business Ontology to strengthen AI-driven operations.
Strong AI demand is improving Snowflake’s financial outlook. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth compared with the 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.
SNOW Benefits From Expanding Customer Base
Snowflake is benefiting from an expanding customer base, strong adoption among large enterprises and rising consumption across its AI Data Cloud. 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 also added 14 Forbes Global 2000 customers, taking the total to 829, or more than 41% of the Global 2000.
Snowflake is also witnessing deeper engagement from existing customers. 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.
Sustained customer additions, deeper enterprise penetration and increasing AI adoption are expected to support Snowflake’s growth prospects. In the second quarter of 2026, remaining performance obligations increased 30% year over year to $9 billion, with roughly 54% expected to be recognized as revenue over the next 12 months.
SNOW Offers Positive Guidance
Snowflake’s rich customer base and innovative AI portfolio are expected to drive the company’s top-line growth.
The Zacks Consensus Estimate for fiscal third-quarter revenues is currently pegged at $1.65 billion, indicating 36.08% year-over-year growth.
The consensus mark for earnings is currently pegged at 60 cents per share, which has been unchanged over the past 30 days. This suggests an increase of 71.43% year over year.
Snowflake Inc. Price and Consensus
Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote
SNOW Trades at a Premium
Snowflake shares are currently overvalued, as suggested by its Value Score of F.
SNOW stock is trading at a premium with a forward 12-month Price/Sales of 13.44X compared with the Internet Software industry’s 3.8X.
SNOW Valuation
Image Source: Zacks Investment Research
Conclusion
Snowflake’s accelerating AI adoption, strong enterprise momentum and raised product revenue guidance support a positive outlook for the stock. These factors have justified its premium valuation.
SNOW stock currently carries a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.