SNOW Expands Portfolio on Acquisitions: What's Ahead for the Stock?

Snowflake SNOW is benefiting from its strategic acquisitions, which are significantly enhancing its portfolio and positioning the company as a leader in the data and AI space.

The company’s acquisition of Datometry has been noteworthy in expanding its capabilities and addressing customer needs more effectively. In the third quarter of fiscal 2026, Snowflake acquired the technology behind Datometry’s software migration solution. This acquisition aims to help customers move from older data warehouses to Snowflake at a lower cost and with less disruption. It simplifies their journey to the AI data cloud. 

Further expanding its portfolio, Snowflake recently announced its agreement to acquire Observe. The acquisition of Observe aims to deliver next-generation AI-powered observability that combines proactive troubleshooting, open-standard architecture and full telemetry retention within the Snowflake AI Data Cloud, enhancing operational resilience, analytics and cost-efficient observability for modern AI-driven enterprises.  

Snowflake is focused on maintaining its position at the center of enterprise AI by continuing to innovate and expand its product offerings through acquisitions. 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 launched the Autonomous AI Lakehouse, combining Oracle Autonomous AI Database with Apache Iceberg for open, interoperable, and multicloud data access. The company introduced new AI-powered capabilities for Oracle Fusion Data Intelligence, including the Oracle Analytics AI Assistant, to help customers analyze business data through natural-language conversation.

SNOW’s Share Price Performance, Valuation, and Estimates

Snowflake shares have lost 1.9% in the trailing six-month period, underperforming the broader Zacks Computer & Technology sector’s return of 20.1%. However, it has outperformed the Zacks Internet Software industry’s decline of 9.2%.

SNOW Stock's Performance

Snowflake stock is trading at a premium, with a forward 12-month Price/Sales of 12.64X compared with the Computer & Technology industry’s 7.46X. 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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