Snowflake vs. Samsara: Which Cloud Data Stock Has an Edge Now?

Snowflake SNOW and Samsara IOT are major players in the cloud data and analytics space. While Snowflake provides a pure-play cloud data warehousing and analytics platform, Samsara provides industrial IoT and cloud solutions that enable businesses to digitize and optimize their physical operations by integrating IoT data, artificial intelligence and workflow tools through its Connected Operations Platform.

Per the Fortune Business Insight report, the global cloud computing market size was valued at $781.27 billion in 2025. It is expected to grow from $905.33 billion in 2026 to $2904.52 billion by 2034, registering a CAGR of 15.7% during the forecast period between 2026 and 2034. Both Snowflake and Samsara are expected to benefit from this rapid growth pace.

Snowflake or Samsara — Which of these Cloud Data stocks has the greater upside potential? Let’s find out.

The Case for SNOW Stock

SNOW is benefiting from 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 reported quarter, Snowflake added 740 net new customers, a 40% year-over-year increase. 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. 

In 2026, Snowflake launched more than 430 product capabilities, including Snowflake Intelligence, Cortex Code, Snowflake OpenFlow, and Snowflake Postgres. These innovations enhanced the platform’s usability and scalability.

The company’s AI-driven products, particularly Snowflake Intelligence and Cortex Code, have been a major growth driver. In 2026, Snowflake Intelligence, which provides enterprise-grade agent capabilities, has been adopted by more than 2,500 accounts within just three months of its launch, nearly doubling quarter-over-quarter.  Cortex Code, a transformational coding agent, has been embraced by more than 4,400 customers, enabling faster development and deployment of AI-powered applications.

Snowflake strengthened its partnerships with major cloud providers, including Google Cloud (Gemini models), OpenAI and Anthropic. These collaborations enabled customers to access advanced AI models natively within Snowflake, further enhancing its cloud-based AI capabilities. The company also signed its largest deal ever, worth over $400 million, along with seven additional nine-figure contracts, reflecting customer confidence in its AI strategy and product roadmap.

The Case for IOT Stock

Samsara is gaining from the adoption of its Connected AI Platform and IoT trackers, telematics, and video-monitoring devices, and is gaining market share among vehicle OEMs and fleet management companies. Samsara added 219 new $100K+ ARR customers, bringing the total to 2,990 in the third quarter of fiscal 2026. The number of customers with ARR more than $1 million increased by 17, bringing the total to 164 customers. IOT’s $1 million-plus ARR customers now contribute to more than 20% of total ARR.

Samsara’s connected cloud platform supports the integration of emerging products, such as AI Multicam, Asset Maintenance, Asset Tags, Connected Training, and Connected Workflows, which contribute to customer growth and adoption.

The company uses AI to accelerate product development and deliver actionable insights. The company’s AI-powered features, such as Automated Coaching, Group Coaching, and Workflow Automations, enhance customer engagement and operational efficiency.

Samsara is continuously improving its AI capabilities by training its models. The company processes more than 20 trillion operational data points from its IoT devices to train and improve its AI models. Through these data sets, Samsara can deliver more accurate predictions, smarter automation, and stronger safety outcomes, gaining industry leadership.

Price Performance and Valuation of SNOW and IOT

In the trailing six-month period, SNOW shares have lost 15.6%, outperforming Samsara’s shares, which have plunged 23.1%. The outperformance in SNOW can be attributed to the company’s rich partner base and an innovative portfolio. However, SNOW shares declined as the company’s free cash flow margin faced a 150 basis point headwind in the fourth quarter of fiscal 2026 due to the Observe acquisition. Stiff competition also remains a concern.

Despite IOT’s expanding portfolio and partner base, the company faces challenges from longer and less predictable sales cycles for large deals, which could introduce variability in quarterly ARR results. Stiff competition also remains a concern.

SNOW and IOT's Performance

Both SNOW and Alphabet shares are currently overvalued, as suggested by a Value Score of F.

In terms of forward 12-month Price/Sales, SNOW shares are trading at 9.97X, higher than IOT’s 8.16X.

SNOW and IOT's Valuation

How Do Earnings Estimates Compare for SNOW & IOT?

The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.61 per share, which has declined by a penny over the past 30 days. This indicates a 34.25% increase year over year.

Snowflake Inc. Price and Consensus

Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote

The Zacks Consensus Estimate for IOT’s fiscal 2026 earnings is pegged at 57 cents per share, unchanged over the past 30 days. This indicates a 12.89% increase year over year.

Samsara Inc. Price and Consensus

Samsara Inc. price-consensus-chart | Samsara Inc. Quote

Snowflake earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 33.27%. Samsara’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 59.23%. The average surprise of Samsara is higher than that of Snowflake.

Conclusion

While both SNOW and IOT are well-positioned to benefit from the booming cloud computing market, IOT currently appears to offer the more compelling upside. IOT’s expanding customer base, strong AI-driven product adoption, and strong earnings momentum signal further upside.

Despite SNOW’s robust portfolio, stiff competition from hyperscale cloud providers remains a headwind. Snowflake’s margins may be impacted by the lower margin profile of new AI products and potential infrastructure costs associated with supporting AI-driven initiatives.

Snowflake and Samsara carry a Zacks Rank #3 (Hold) at present. 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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