SNOW's Robust Portfolio Fuels Revenue Growth: What's the Path Ahead?

Snowflake SNOW is benefiting from its robust portfolio of innovative products and strategic partnerships, which are driving significant revenue growth and positioning the company as a leader in the enterprise AI revolution. In the third quarter of fiscal 2026, SNOW reported product revenue of $1.16 billion, marking a 29% year-over-year increase.

The company’s AI-focused offerings, such as Snowflake Intelligence and Cortex AI, are transforming how businesses interact with data. The company’s partnerships with major players like Google Cloud, SAP, Anthropic, and AWS are enhancing its ecosystem, enabling seamless data integration and expanding its market reach.

Snowflake recently expanded its partnership with Alphabet’s cloud computing platform Google Cloud to improve product integration and market strategy. This integration brings Alphabet’s Google Cloud Gemini 3 models directly into Snowflake Cortex AI.  Enterprises can build and scale generative AI applications securely and with governed data, without data movement. The partnership also includes global expansion, marketplace co-selling, and infrastructure upgrades that enhance price and performance on Alphabet’s Google Cloud.

Snowflake is focused on maintaining its position at the center of enterprise AI by continuing to innovate and expand its product offerings.  With AI influencing 50% of bookings in the fiscal third quarter of 2026 and 28% of deployed use cases incorporating AI, the company is poised to capitalize on the growing demand for AI-driven data solutions. For the fourth quarter of fiscal 2026, Snowflake expects product revenues in the range of $1.195-$1.2 billion. The projection range indicates year-over-year growth of 27%.

Snowflake Suffers From Stiff Competition

Snowflake is facing stiff competition from the likes of major players like Amazon AMZN and Oracle ORCL, which are also expanding their footprint in the AI space.

Amazon recently collaborated with Infosys through its cloud computing platform, Amazon Web Services (AWS), to accelerate enterprise adoption of generative AI by combining Infosys Topaz with AWS services like Amazon Q Developer and Amazon Bedrock. Amazon’s collaboration with Infosys enhances software development, operations, and industry solutions, enabling faster innovation, improved productivity, and personalized digital experiences across sectors.

Oracle’s expanding portfolio has been noteworthy. In October 2025, Oracle announced the Oracle Fusion Applications AI Agent Marketplace. This new embedded marketplace allows Fusion Cloud customers to easily find, use, and customize approved, partner-built AI agents. These agents help speed up secure, large-scale AI adoption in finance, HR, supply chain, and customer experience.

SNOW’s Share Price Performance, Valuation, and Estimates

Snowflake shares have appreciated 39% in the trailing 12-month period, outperforming the broader Zacks Computer & Technology sector’s return of 26.3% and the Zacks Internet Software industry’s growth of 6%.

SNOW Stock's Performance

Snowflake stock is trading at a premium, with a forward 12-month Price/Sales of 13.55X compared with the Internet Software industry’s 4.77X. SNOW has a Value Score of F.

SNOW's Valuation

The Zacks Consensus Estimate for SNOW’s fiscal 2026 earnings is pegged at $1.20 per share, a decline of a penny over the past 30 days. The figure indicates a 44.58% 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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