Snowflake(US:SNOW) ZACKSยท2025-09-03 18:31Core Insights - Snowflake (SNOW) is experiencing significant growth driven by its focus on the AI Data Cloud, which is becoming a key growth catalyst for the company [1] Financial Performance - In Q2 of fiscal 2026, Snowflake reported product revenues of $1.09 billion, marking a 32% year-over-year increase, indicating strong demand for its AI Data Cloud [2][10] - Approximately 50% of new customer acquisitions in Q2 were influenced by AI, with 25% of all deployed use cases involving AI [2] - The consensus estimate for SNOW's fiscal 2026 earnings is $1.08 per share, reflecting a 30.12% year-over-year increase [13] Strategic Partnerships - Snowflake has partnered with Siemens to integrate its AI Data Cloud with Siemens Industrial Edge, enhancing data connectivity for manufacturers [3] - Collaborations with OpenAI, Anthropic, and Microsoft Azure are expanding Snowflake's reach and AI capabilities, with Azure showing a 40% year-over-year growth in Q2 [4] Product Development - The company launched approximately 250 new capabilities in the first half of fiscal 2026, including Snowflake Intelligence and Cortex AI SQL, which enhance data management and AI-driven insights [5][10] Competitive Landscape - Snowflake faces strong competition from Amazon (AWS) and Alphabet (Google Cloud), which offer similar AI Data Cloud solutions [6][7] - Amazon's AWS and Alphabet's Google Cloud leverage their extensive ecosystems to attract enterprises, posing challenges for Snowflake's market dominance [6][7] Stock Performance and Valuation - Snowflake's shares have appreciated 51.3% year to date, outperforming the broader Zacks Computer & Technology sector and the Zacks Internet Software industry [8] - The stock is trading at a premium with a forward 12-month Price/Sales ratio of 15.02X compared to the industry's 5.68X [11]