Snowflake SNOW is benefiting from the accelerating adoption of enterprise AI, which is fundamentally reshaping how organizations operate and innovate. The company’s strong focus on AI security and governance, which is rapidly becoming a key differentiator in the enterprise AI landscape, has been noteworthy. 13,912 customers trust its AI Data Cloud for its enterprise-grade governance and security.
Snowflake’s AI products, which include Snowflake Intelligence and Cortex Code (CoCo), are seeing rapid adoption, with CoCo already in use by more than 7,100 accounts. These products allow both business users and developers to interact with enterprise data and build AI-powered applications directly within Snowflake, all while maintaining strict governance. With the intended acquisition of Natoma, Snowflake is extending its agentic control plane to everyday business applications, enabling users to perform tasks like sending emails or summarizing Slack conversations within a governed environment.
Building on this momentum, Snowflake recently unveiled Cortex AI Gateway and new AI security capabilities to help enterprises securely deploy and manage AI agents across platforms. The centralized gateway enables organizations to govern first- and third-party AI agents, monitor agent activity, optimize AI spending and control token usage from a single interface.
Built on Snowflake’s Natoma acquisition, the platform supports secure interoperability and integrates with partners including 1Password, Okta, SailPoint and Saviynt. The company also introduced zero-trust security enhancements, including AI risk monitoring, verified agent identities and data protection, to accelerate enterprise AI adoption.
The AI-driven momentum is translating into tangible financial results. Snowflake expects fiscal second-quarter 2027 product revenues in the range of $1.415-$1.420 billion, implying 30% year-over-year growth, citing meaningful uplift from AI capabilities.
SNOW Suffers From Stiff Competition
Snowflake is facing stiff competition from major players like Amazon AMZN and Oracle ORCL, 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 23.2% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s increase of 9.6%. The Internet Software industry has declined 10.2% 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 13.79X compared with the Internet Software industry’s 3.81X. 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.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpSnowflake Inc. (SNOW) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Oracle Corporation (ORCL) : Free Stock Analysis Report
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.
