Key Takeaways Snowflake posted 19% customer growth and a 125% net revenue retention rate in fiscal Q2 2026. AMZN's AWS revenue climbed 17.5% year over year to $30.9B, with major enterprise deals fueling demand. Both stocks look overvalued, but AMZN's diversified cloud ecosystem offers a steadier long-term edge. Snowflake (SNOW) and Amazon (AMZN) are major players in the cloud data and analytics space. While Snowflake provides a pure-play cloud data warehousing and analytics platform, Amazon, through its clo ...

Core Insights - Snowflake (SNOW) is experiencing significant growth driven by a strong portfolio of innovative products and services, with approximately 250 new capabilities launched in the first half of fiscal 2026 [1][2] Customer Growth and Adoption - In Q2 FY26, Snowflake added 533 new customers, including 15 Global 2000 companies, raising the total customer count to over 12,000 [3][10] - A record 50 customers surpassed the $1 million mark in trailing 12-month revenue, bringing the total of $1 million-plus customers to 654 [3] AI-Driven Solutions - Nearly 50% of new customers in Q2 FY26 were influenced by AI-driven solutions, with 25% of all deployed use cases including AI [4][10] - Over 6,100 accounts utilize Snowflake's AI features weekly [4] Strategic Partnerships - Snowflake's partnerships with OpenAI, Anthropic, and Microsoft Azure are enhancing its AI capabilities and expanding its market reach [5] Competitive Landscape - Snowflake faces strong competition from Microsoft and ServiceNow, both of which are enhancing their AI-driven solutions [6][7] - Microsoft is integrating OpenAI into its Azure Synapse and Fabric offerings, positioning itself as a formidable competitor [6] Financial Performance - Snowflake shares have appreciated 46.2% year to date, outperforming the broader Zacks Computer & Technology sector's return of 18.8% and the Zacks Internet Software industry's increase of 22.2% [8] - The forward 12-month Price/Sales ratio for Snowflake is 14.60X, significantly higher than the industry's 5.82X [11] Earnings Estimates - The consensus estimate for Snowflake's fiscal 2026 earnings is $1.15 per share, reflecting a 38.55% year-over-year increase and a 7.47% rise over the past 30 days [13]

Core 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]