Snowflake SNOW is benefiting from a strategic expansion of its AI reach through deepening partnerships and innovative product launches. In the first quarter of fiscal 2027, SNOW reported 13,912 total customers and added 616 net new customers, including 13 new Forbes Global 2000 customers.
Large-customer depth continued to improve, with 779 customers above the $1 million trailing product revenue threshold, representing 29% year-over-year growth in that cohort. Net revenue retention rate was 126%, reflecting continued expansion from existing customers.
A key driver of Snowflake’s recent momentum is its expanded collaborations with major technology partners. In May 2026, Snowflake announced a new $6 billion multiyear agreement with AWS to accelerate enterprise AI adoption globally, leveraging AWS’s Graviton compute and AI services. This partnership builds on Snowflake’s surpassing of $7 billion in lifetime AWS Marketplace sales, reflecting the growing demand for AI and data workloads on its platform.
The impact of these partnerships is evident in Snowflake’s financial and operational performance. Product revenue grew 34% year over year in the first quarter of fiscal 2027, with AI products like Cortex Code and Snowflake Intelligence seeing the fastest adoption in company history. The company recently announced expanded momentum in its strategic partnership with Anthropic, helping enterprises deploy governed, production-ready AI and AI agents on critical business data through Claude models integrated into Snowflake Cortex AI.
Snowflake’s growing customer base, combined with its rapid product innovation, positions the company for continued upside. Snowflake expects fiscal second-quarter 2027 product revenues in the range of $1.415-$1.420 billion, implying 30% year-over-year growth.
SNOW Suffers From Stiff Competition
Snowflake is facing stiff competition from major players such as Alphabet GOOGL and Amazon AMZN. Both Alphabet and Amazon are expanding their footprints in the cloud analytics space.
Alphabet has been growing rapidly in the booming cloud-computing market. In the first quarter of 2026, Alphabet’s cloud revenues surged 63% year over year to roughly $20 billion. This acceleration is largely fueled by enterprise adoption of generative AI offerings such as Gemini, with revenue from AI-based cloud products growing nearly 800% year over year.
Amazon continues to see strong demand for its cloud services. In the first quarter of 2026, Amazon Web Services (AWS) announced new agreements with major enterprises, including OpenAI, Anthropic, Meta Platforms, NVIDIA, Uber, U.S. Bank, Fox Corporation, Southwest Airlines, U.S. Army, Bloomberg, Cerebras, AT&T, DTCC, Nokia, The National Geographic Society, NEURA Robotics, DXC, PGA TOUR, O2 Telefonica, NTT DOCOMO, and many more.
SNOW’s Share Price Performance, Valuation, and Estimates
Snowflake shares have gained 27.7% in the year-to-date period, outperforming the broader Zacks Computer & Technology sector’s increase of 21.3% and the Internet Software industry’s decline of 6.1%.
SNOW Stock Performane
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Snowflake stock is trading at a premium, with a forward 12-month Price/Sales ratio of 14.9X compared with the Internet Software industry’s 4.02X. SNOW has a Value Score of F.
SNOW Valuation
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The Zacks Consensus Estimate for SNOW’s fiscal 2027 earnings is pegged at $1.82 per share, which has increased by a penny over the past 30 days. The figure indicates a 45.6% year-over-year increase.
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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