SNOW's Robust Portfolio Expands Client Base: Will the Trend Continue?

Snowflake SNOW is benefiting from a robust portfolio of innovative products and services that are driving strong customer adoption and revenue growth. In the first half of fiscal 2026 alone, the company launched approximately 250 new capabilities, including Snowflake Intelligence, Cortex AI SQL, Gen2 warehouses and Snowflake Postgres.

The Datavolo acquisition helped Snowflake to further expand its portfolio with the launch of Snowflake Connectors that enable customers with seamless connectivity and data integration with key platforms like Google Drive, Workday, Slack, SharePoint and more.

In the second quarter of fiscal 2026, the company added 533 new customers, including 15 Global 2000 companies, bringing its total customer count to over 12,000. Notably, 50 customers crossed the $1 million mark in trailing 12-month revenue, a record for the company, with $1 million-plus customers now totaling 654.

The company’s ability to address the growing demand for AI-driven solutions has been a key catalyst. Nearly 50% of new customers gained in the second quarter of fiscal 2026 were influenced by AI. Additionally, 25% of all deployed use cases included AI. In the reported quarter, Snowflake also announced that more than 6,100 accounts use Snowflake’s AI features every week.

SNOW’s partnerships are also playing an important role in expanding its reach. Its collaboration with OpenAI, Anthropic, and Microsoft Azure is expanding its reach and enhancing its AI capabilities. Azure was the fastest-growing cloud for Snowflake, with 40% year-over-year growth in the second quarter of fiscal 2026.

Snowflake Suffers From Stiff Competition

Snowflake is facing stiff competition from the likes of Microsoft MSFT and ServiceNow NOW, which are also expanding their presence in enterprise-grade AI workflows.

Microsoft is growing Azure Synapse and Fabric to combine analytics, data storage, and access to foundation models. With OpenAI integration and a large cloud ecosystem, Microsoft is setting itself up as a strong competitor to Snowflake in AI-driven, data-focused solutions.

ServiceNow is extensively leveraging AI and machine learning technologies to boost the potency of its solutions. A strong and frequently updated portfolio is helping ServiceNow win customers regularly. Exiting the second quarter of 2025, ServiceNow had 89 deals greater than $1 million in net new annual contract value (ACV), of which 11 were greater than $5 million in net new ACV. NOW ended the quarter with 528 customers with more than $5 million in ACV, representing approximately 19.5% year-over-year growth.

SNOW’s Share Price Performance, Valuation, and Estimates

Snowflake shares have appreciated 46.2% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 18.8% and the Zacks Internet Software industry’s increase of 22.2%.

SNOW Stock's Performance

Snowflake stock is trading at a premium, with a forward 12-month Price/Sales of 14.60X compared with the industry’s 5.82X. SNOW has a Value score of F.

Price/Sales (F12M)

The consensus mark for SNOW’s fiscal 2026 earnings is pegged at $1.15 per share, which has increased 7.47% over the past 30 days. The figure indicates a 38.55% increase year over year. 

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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