Snowflake Rides on Enterprise AI Adoption: A Sign for More Upside?

Snowflake SNOW is benefiting significantly from the growing adoption of enterprise AI, positioning itself as a key player in the ongoing AI revolution. With a $100 million AI revenue run rate achieved a quarter earlier than anticipated, Snowflake has demonstrated its ability to capitalize on the increasing demand for AI solutions in the enterprise space. 

Snowflake’s expanding portfolio has been noteworthy. The company recently launched significant AI innovations. This includes Semantic View Autopilot, which automates and manages semantic layers for more reliable AI results. They also improved machine learning capabilities with Snowflake Notebooks and introduced real-time model deployment. The company revealed Cortex Agent Evaluations and enhanced AI cost governance features. These updates allow businesses to build, deploy, and manage production-grade AI systems more transparently and effectively.

Snowflake’s strategic partnerships with major players like Google Cloud, SAP, Anthropic, and AWS further bolster its position in the enterprise AI market. These collaborations enhance the accessibility of AI models, streamline data integration and expand the company’s go-to-market reach.

As enterprise AI adoption continues to accelerate, Snowflake is well-positioned to capture more market share and drive sustained growth. Its focus on innovation, customer-centric solutions, and strategic partnerships ensures that it remains at the forefront of the AI revolution.

Snowflake Suffers From Stiff Competition

Snowflake faces stiff competition from companies like Oracle ORCL and Amazon AMZN. Both Oracle and Amazon are expanding their footprint in the AI space.

Oracle’s expanding portfolio has been noteworthy. The company recently launched role-based AI agents in Oracle Fusion Cloud CX. These agents automate marketing, sales and service tasks. They provide predictive, data-driven help right within business operations through AI Agent Studio.

Amazon’s AI initiatives gained significant momentum during the fourth quarter of 2025, representing a strategic priority across the company. The company’s AI initiatives gained significant momentum during the quarter. 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.

SNOW’s Share Price Performance, Valuation, and Estimates

Snowflake shares have lost 8.6% in the trailing 12-month period, underperforming the broader Zacks Computer & Technology sector’s return of 9.7%. However, the company’s shares have outperformed the Zacks Internet Software industry’s decline of 20.5%.

SNOW Stock's Performance

Snowflake stock is trading at a premium, with a forward 12-month Price/Sales of 10.42X compared with the Internet Software industry’s 3.86X. 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, unchanged 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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