Snowflake SNOW shares closed at $212.08 on Wednesday, very close to the 52-week high of $214.83, hit on June 4, 2025. SNOW shares have jumped 37.3% year to date (YTD), outperforming the Zacks Internet - Software industry and Zacks Computer and Technology sector gained 12.8% and 1.5%, respectively.
The upside in Snowflake is driven by strong first-quarter fiscal 2026 results, consistent product innovation and robust customer expansion. Revenues increased 25.7% year over year to $1.04 billion, beating the Zacks consensus mark by 3.74%. Snowflake reported non-GAAP earnings of 24 cents per share, surpassing the consensus estimate of 22 cents and rising from 14 cents reported in the year-ago quarter. The company added 451 net new customers during the quarter, reflecting 18.8% year-over-year growth.
SNOW Stock’s Performance
Image Source: Zacks Investment Research
Snowflake shares are trading above the 50-day moving average, indicating a bullish trend.
SNOW Shares Trade Above 50-Day SMA
Image Source: Zacks Investment Research
Snowflake Shares Trading at a Premium
Snowflake shares are trading at a premium, as suggested by the Value Score of F.
In terms of forward 12-month P/S, SNOW stock is trading at 14.49X compared with the industry’s 5.67X. The stock is expensive than competitors like Teradata TDC and MongoDB MDB.
Shares of Teradata and MongoDB are currently trading at P/S ratios of 1.28X and 6.91X, respectively.
Price/Sales (F12M)
Image Source: Zacks Investment Research
With shares trading near 52-week high and valuation metrics stretched, the key question is whether SNOW still offers compelling upside at current levels. Let’s take a closer look.
Snowflake’s Strong and Innovative Portfolio Drives Growth
Snowflake’s expanding portfolio has been noteworthy. Products like Generation 2 Warehouses, Adaptive Compute, Openflow and Snowflake Intelligence are helping drive new enterprise adoption.
Building on this momentum, in June 2025, Snowflake launched Generation 2 Warehouses with 2.1x faster analytics and Adaptive Compute to enable automatic resource scaling. The company also introduced Openflow, a managed service built on Apache NiFi, to simplify batch and streaming data ingestion into the AI Data Cloud, supporting faster integration for AI and real-time workloads.
Snowflake’s investments in AI and machine learning, including the introduction of Snowflake Intelligence and enhancements to the Marketplace with agentic native apps and AI-ready datasets, continue to gain traction. These capabilities are helping customers accelerate GenAI deployment across business functions and reduce time to insight.
Strong Clientele and Partnerships Support SNOW’s Momentum
Snowflake’s platform continues to gain adoption among large enterprises across industries. Companies like JPMorgan Chase, AstraZeneca, Siemens, Samsung Ads and Dentsu are leveraging the AI Data Cloud to unify workloads, improve visibility and drive more personalized customer experiences. As of the first quarter, more than 5,200 customers were actively using Snowflake’s AI and ML features weekly.
Snowflake also benefits from a robust partner ecosystem that includes Microsoft MSFT, Amazon, ServiceNow and NVIDIA, along with consulting leaders like EY and S&P Global. In partnership with Microsoft, the company continues to enhance data interoperability and simplify AI development. A recently expanded collaboration with Acxiom enables the unification of identity and audience data within the Snowflake Data Cloud, helping brands launch AI-driven marketing campaigns with improved personalization and reach. Microsoft remains a key technology partner for Snowflake as it pushes co-innovation efforts across industries to drive broader GenAI adoption.
SNOW Offers Positive View for Q2 and FY26
For the second quarter of fiscal 2026, Snowflake expects product revenues in the range of $1.03-$1.04 billion. The projection range indicates year-over-year growth of 25%. For fiscal 2026, Snowflake projects product revenues to grow 25% year over year to reach $4.32 billion.
The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is currently pegged at $1.08 billion, indicating 24.85% year-over-year growth. The consensus mark for earnings is currently pegged at 26 cents per share, unchanged over the past 30 days. This indicates an increase of 44.44% year over year.
Snowflake Inc. Price and Consensus
Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote
The Zacks Consensus Estimate for SNOW’s fiscal 2026 revenues is pegged at $4.51 billion, indicating year-over-year growth of 24.50%. The consensus mark for earnings is pegged at $1.06 per share, which has decreased nine cents over the past 30 days. This indicates an increase of 27.71% on a year-over-year basis.
How Should Investors Play SNOW Stock?
Snowflake’s expanding customer footprint, continued platform innovation and strong ecosystem of partners provide a solid foundation for long-term growth. However, intensifying competition from hyperscale cloud providers like AWS, Azure and Google Cloud continues to be a competitive hurdle.
The company also faces increasing pressure from enterprise data cloud and analytics providers such as Teradata and MongoDB, which are enhancing their offerings and capturing market share. In parallel, elevated infrastructure spending, particularly on GPUs to support AI-driven initiatives, is adding to cost pressures. Stretched valuation remains a concern.
SNOW currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. 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).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
