SNOW's Robust Portfolio Fuels Revenue Growth: A Sign for More Upside?

Snowflake SNOW is benefiting from its robust portfolio of AI-driven products and services, which are driving revenue growth and signaling potential for further upside. In the fourth quarter of fiscal 2026, Snowflake’s product revenues were $1.22 billion, which accounted for 96% of total revenues.

A key driver of this growth is Snowflake’s expanding AI portfolio, including Snowflake Intelligence and Cortex Code. In the fourth quarter of fiscal 2026, Snowflake Intelligence, which provides enterprise-grade agent capabilities, has scaled rapidly to more than 2,500 accounts, nearly doubling quarter-over-quarter. Cortex Code, a transformational coding agent, is accelerating the development and deployment of AI-powered applications, with more than 4,400 customers already leveraging its capabilities.

SNOW is benefiting from the strong adoption and increasing usage of its platform, as reflected by the net revenue retention rate of 125% in the fourth quarter of fiscal 2026. In the same quarter, Snowflake added 740 net new customers, up 40% year over year. The company now has 733 customers spending more than $1 million annually, up 27% year over year, and 56 customers spending more than $10 million annually, up 56% year over year. SNOW’s partnerships with AI leaders such as OpenAI, Anthropic and Google Cloud further enhance its ecosystem, enabling seamless data integration and expanding its market reach.

Snowflake’s innovative portfolio is expected to drive the company’s top-line growth. For the first quarter of fiscal 2027, Snowflake expects product revenues in the range of $1.262-$1.267 billion. The projection range indicates year-over-year growth of 27%.

Snowflake Suffers From Stiff Competition

Snowflake is facing stiff competition from major players such as Amazon AMZN and Oracle ORCL. Both Amazon and Oracle are expanding their presence in the AI space.

Amazon’s AI initiatives gained significant momentum during the fourth quarter of 2025, representing a strategic priority across the company. AWS’s custom chips business, including Trainium and Graviton, now has a combined annual revenue run rate of more than $10 billion and is growing at triple-digit percentages year over year.

Oracle’s expanding portfolio has been noteworthy. In February 2026, Oracle announced new AI agents in its Fusion Cloud Applications to help supply chain leaders automate workflows, accelerate decisions, reduce risk, boost efficiency, and strengthen operational resiliency.

SNOW’s Share Price Performance, Valuation, and Estimates

Snowflake shares have lost 20.5% in the trailing six-month period, underperforming the broader Zacks Computer & Technology sector’s return of 1.8%. However, it has outperformed the Zacks Internet Software industry’s decline of 22.1%.

SNOW Stock's Performance

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Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 10.17X, compared with the Internet Software industry’s 3.97X. SNOW has a Value Score of F.

SNOW's Valuation

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The Zacks Consensus Estimate for SNOW’s fiscal 2026 earnings is pegged at $1.80 per share, which has increased 11.8% over the past 30 days. The figure indicates a 44% 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).

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