Can Momentum in Cortex AI Drive Further Upside in SNOW Stock?

Core Insights - Snowflake's Cortex AI platform is experiencing increased enterprise adoption, becoming a significant driver of its consumption-led revenue model [1][4] - In Q2 of fiscal 2026, over 6,100 accounts utilized Snowflake's AI features weekly, marking a 17% sequential growth, with AI deployments accounting for 50% of new customer additions [1][3] Group 1: Performance Metrics - Product revenues for Q2 fiscal 2026 rose by 31.5% year over year to $1.09 billion, supported by a net revenue retention rate of 125% [3] - Remaining Performance Obligations (RPOs) increased by 33% year over year to $6.9 billion, with 654 customers spending over $1 million annually [3][4] - The Zacks Consensus Estimate for Q3 product revenue is projected at $1.12 billion, reflecting a 24% increase from the previous year [4] Group 2: Competitive Landscape - Snowflake faces rising competition in enterprise AI from ServiceNow and Salesforce, both intensifying their AI focus [5] - ServiceNow is expanding AI across enterprise workflows, while Salesforce emphasizes usability and integration in analytics and customer operations [5] Group 3: Valuation and Stock Performance - Snowflake shares have appreciated 56.1% year to date, outperforming the broader Zacks Computer & Technology sector's return of 13.4% and the Zacks Internet Software industry's increase of 18.8% [6] - The stock is trading at a forward 12-month Price/Sales ratio of 15.79X, significantly higher than the industry's 5.65X [10]