Snowflake SNOW is benefiting from the accelerating adoption of its AI Data Cloud, which is fundamentally transforming how organizations leverage data and artificial intelligence to drive productivity and innovation. The rapid adoption of new AI-driven products like Snowflake Intelligence and Cortex Code (CoCo) remains noteworthy.
In the fiscal first quarter, Snowflake delivered more than 20% more product capabilities than last year. This includes new features in CoCo and Snowflake Intelligence. These products are seeing the fastest uptake in Snowflake’s history, with CoCo already in use by more than 7,100 accounts and Snowflake Intelligence more than doubling quarter over quarter. New customers such as Holiday Inn Club Vacations and Houzz selected Snowflake as the foundation for their data and AI transformation initiatives. The adoption of Snowflake AI capabilities continued to expand, with more than 13,600 accounts now leveraging these solutions.
Further expanding its AI footprint through partnerships, in June 2026, Snowflake announced that Thomson Reuters is building its enterprise AI and data platform on the Snowflake AI Data Cloud to deliver trusted, governed intelligence at scale. The collaboration enables faster analytics, modernizes legacy systems with Snowflake CoCo and supports enterprise AI innovation using Snowflake Cortex.
Snowflake also announced that Sanofi launched its “Concierge for Field,” an AI agent built with Snowflake Cortex AI to help sales representatives prepare for physician visits in seconds. The collaboration also supports Sanofi's broader deployment of AI agents across R&D, procurement, IT, HR and field sales to accelerate innovation and drug development.
Snowflake’s growing customer base, combined with its rapid product innovation, positions the company for continued upside. Snowflake expects fiscal second-quarter 2027 product revenues in the range of $1.415-$1.420 billion, implying 30% year-over-year growth.
SNOW Suffers From Stiff Competition
Snowflake is facing stiff competition from the likes of major players like Oracle ORCL and Amazon AMZN, which are also expanding their footprint in the AI space.
Amazon’s AI initiatives gained significant momentum during the first quarter of 2026. Amazon’s cloud computing platform, Amazon Web Services’ chips business, including Graviton, Trainium, and Nitro, exceeded a $20 billion annual revenue run rate and is growing triple-digit percentages year over year.
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 19.5% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s increase of 14.7%. The Internet Software industry has declined 11.2% 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 13.55X compared with the Internet Software industry’s 3.78X. 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 $1.96 per share, which has been unchanged over the past 30 days. The figure indicates a 56.80% year-over-year increase.
Snowflake Inc. Price and Consensus
Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote
Snowflake currently carries a Zacks Rank #3 (Hold). 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.
