Snowflake Expands in Cloud Analytics: Can It Challenge DELL & ORCL?
Snowflake SNOW is benefiting from strong enterprise adoption of AI and the rapid expansion of cloud analytics. The company’s AI Data Cloud combines governed enterprise data, AI models, applications and workflows, positioning the company to capture rising demand for analytics and agentic AI.
The expanding capabilities of the platform are also strengthening Snowflake’s competitive position against Dell Technologies DELL and Oracle ORCL across enterprise data infrastructure, cloud analytics and AI-driven workloads. Snowflake’s product revenues increased 37% year over year to $1.49 billion in the second quarter of fiscal 2027, reflecting strong demand across its core data platform and AI offerings.
Snowflake’s expanding cloud analytics footprint is supported by continued customer additions and deeper adoption among existing clients. The company ended the fiscal second quarter with 14,554 customers and added 692 net new customers, including 14 Global 2000 companies. Net new customer additions increased 32% year over year. In the fiscal second quarter, 65 customers generated more than $10 million in trailing 12-month product revenues, highlighting greater adoption among large enterprises. The company’s 126% net revenue retention rate and $9 billion in remaining performance obligations further indicate healthy expansion within its customer base.
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.
SNOW’s accelerating customer adoption and a robust pipeline of AI-driven products position the company to capture a significant share of the cloud analytics market. For fiscal 2027, the company raised product revenue guidance to $6.07 billion, implying 36% year-over-year growth compared with 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 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 end of the first quarter of fiscal 2027.
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 53.7% year to date, outperforming the broader Zacks Computer & Technology sector’s 18.2% appreciation. The Internet Software industry has declined 0.2% 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 16.19X compared with the Internet Software industry’s 4.07X. SNOW has a Value Score of F.
SNOW's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $2.01 per share, which has increased 2.55% over the past 30 days. The figure indicates a 60.80% 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.
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This article originally published on Zacks Investment Research (zacks.com).
