Core Insights - Snowflake (SNOW) is experiencing significant growth due to its expansion in cloud infrastructure and focus on AI capabilities, with product revenue increasing by 29% year-over-year to $1.16 billion in Q3 FY26 [1][10] - The company has remaining performance obligations of $7.88 billion, reflecting a 37% year-over-year growth [1][10] Growth Drivers - Collaboration with major cloud providers like AWS and Google Cloud has been pivotal, with Snowflake surpassing $2 billion in sales through AWS Marketplace in a single calendar year and receiving 14 AWS Partner awards [2] - The partnership with Google Cloud to integrate Gemini models into Snowflake's AI offerings enhances customer access to advanced AI capabilities [2] AI Focus - Snowflake achieved a $100 million AI revenue run rate one quarter earlier than expected, driven by the adoption of Snowflake Intelligence and Cortex AI [3] - AI is influencing 50% of bookings signed in Q3 FY26, with 28% of all deployed use cases incorporating AI, solidifying Snowflake's position in enterprise AI [3] Future Projections - For Q4 FY26, Snowflake expects product revenues to be in the range of $1.195 billion to $1.2 billion, indicating a year-over-year growth of 27% [4] Competitive Landscape - Snowflake faces competition from Alphabet (GOOGL) and MongoDB (MDB), both expanding in the cloud analytics space [5] - Google Cloud's revenues increased by 33.5% year-over-year to $15.16 billion in Q3 FY25, indicating strong growth in the cloud market [6] - MongoDB's Atlas platform has shown a year-over-year growth of 30% in Q3 FY26, now representing 75% of its total revenue [7] Stock Performance and Valuation - Snowflake shares have decreased by 2.7% over the past 12 months, underperforming the Zacks Computer & Technology sector's return of 13.6% [8] - The stock is trading at a forward Price/Sales ratio of 12.42X, significantly higher than the Internet Software industry's 4.34X [11] - The Zacks Consensus Estimate for SNOW's fiscal 2026 earnings is $1.20 per share, indicating a 44.58% year-over-year increase [13]

Core Insights - Snowflake (SNOW) is experiencing significant growth, with a 20% year-over-year increase in its customer base, reaching 12,621 customers in Q3 of fiscal 2026 [1][10] - The company's AI capabilities are a major driver of its success, achieving a $100 million AI revenue run rate a quarter earlier than anticipated, with 1,200 customers utilizing the Snowflake Intelligence platform [2][10] - Snowflake has surpassed $2 billion in sales through the Amazon Web Services (AWS) Marketplace, doubling its year-over-year growth, and is enhancing its partnership with AWS through new innovations [4][10] Customer Growth and Revenue - The number of customers with trailing 12-month product revenues exceeding $1 million has increased by 29% year-over-year, totaling 688 [1] - Snowflake has 766 customers from the Forbes Global 2000 list, indicating strong adoption among large enterprises [1] AI and Technology Adoption - The rapid adoption of Snowflake's AI platform is transforming business data interactions, contributing significantly to revenue growth [2] - The company is focused on modernizing data platforms and creating AI-ready architectures through collaborations with AWS [4] Competitive Landscape - Snowflake faces intense competition from major players like Amazon and Alphabet in the cloud data and analytics market [5] - Alphabet's Google Cloud is expanding rapidly, with a 46% sequential increase in backlog and a 34% year-over-year rise in new customers [6] - Amazon's AWS continues to secure new agreements, indicating strong demand for its cloud services [7] Stock Performance and Valuation - Snowflake shares have decreased by 0.4% over the past six months, underperforming the Zacks Computer & Technology sector's 20.1% return but outperforming the Zacks Internet Software industry's decline of 6.3% [8][10] - The stock is trading at a forward 12-month Price/Sales ratio of 13.56X, significantly higher than the Internet Software industry's 4.86X [11] - The Zacks Consensus Estimate for SNOW's fiscal 2026 earnings is $1.20 per share, reflecting a 44.58% year-over-year increase [13]

Core Insights - Snowflake (SNOW) and Alphabet (GOOGL) are significant players in the cloud data and analytics market, with Snowflake focusing on cloud data warehousing and analytics, while Alphabet offers similar services through Google Cloud's BigQuery [1][2] Market Overview - The global cloud analytics market was valued at $35.39 billion in 2024 and is projected to reach $130.63 billion by 2030, with a CAGR of 25.5% from 2025 to 2030, indicating strong growth potential for both Snowflake and Alphabet [2] Snowflake (SNOW) Performance - Snowflake reported a net revenue retention rate of 125% in Q3 of fiscal 2026, with a 20% year-over-year growth in customers, totaling 12,621 [3] - The company has 688 customers generating over $1 million in trailing 12-month product revenues, a 29% increase year-over-year [3] - AI has been a significant growth driver, influencing 50% of bookings in Q3, and the company achieved a $100 million AI revenue run rate earlier than expected [4] - Snowflake introduced 370 new GA product capabilities year-to-date, a 35% increase from the previous year [5] - Over 7,300 customers are utilizing Snowflake's AI and ML technology weekly [6] Alphabet (GOOGL) Performance - Alphabet's Google Cloud revenues grew by 33.5% year-over-year to $15.16 billion in Q3 2025, reflecting strong growth in the cloud computing market [8] - Google Cloud ended Q3 2025 with a backlog of $155 billion, a 46% sequential increase, and saw a 34% year-over-year increase in new customers [9] - 70% of Google Cloud customers are now using Alphabet's AI products, indicating strong demand for its offerings [9] - Google Cloud has expanded its global presence with 42 cloud regions and 127 zones across more than 200 countries [10] Valuation and Earnings Estimates - In the past six months, SNOW shares gained 4.2%, while GOOGL shares surged 75%, attributed to Alphabet's AI initiatives [12] - SNOW shares are trading at a forward Price/Sales ratio of 13.36X, higher than GOOGL's 9.68X, indicating potential overvaluation for both [15] - The Zacks Consensus Estimate for SNOW's fiscal 2026 earnings is $1.20 per share, a 44.58% year-over-year increase, while Alphabet's 2025 earnings estimate is $10.52 per share, reflecting a 30.85% year-over-year increase [17] Conclusion - Both Snowflake and Alphabet are well-positioned to capitalize on the growing cloud analytics market, but Alphabet's broader ecosystem, stronger infrastructure, and consistent earnings growth make it a more stable investment choice [19]

Core Insights - Snowflake (SNOW) is experiencing growth due to an expanding customer base, ongoing platform innovation, and a robust partner ecosystem, laying a strong foundation for long-term growth [1] Customer Growth - In Q2 of fiscal 2026, Snowflake added 533 new customers, including 15 from the Global 2000 list, marking a 21% year-over-year increase in net new customer additions [2] - The number of customers generating over $1 million in trailing 12-month revenues reached 654, with 50 customers crossing this threshold in the reported quarter [2] Partnerships and Collaborations - Snowflake collaborates with major cloud providers such as Microsoft Azure, AWS, and Google Cloud, as well as system integrators and technology innovators, enhancing its market reach and driving adoption [3][4] - The partnership with Palantir aims to integrate Snowflake's AI Data Cloud with Palantir's Foundry and AIP platforms, which is expected to improve operational efficiency and accelerate AI application development for joint customers [5][11] Competitive Landscape - Snowflake faces significant competition from major players like Amazon and Alphabet in the cloud data and analytics sector [6] - Amazon's cloud services continue to see strong demand, with significant agreements secured with major companies [7] - Alphabet is expanding its presence in the cloud analytics market through its Google Cloud platform and partnerships with NVIDIA [8] Stock Performance and Valuation - Snowflake's shares have appreciated by 59.1% year to date, outperforming the broader Zacks Computer & Technology sector's return of 23% and the Zacks Internet Software industry's growth of 16.4% [9] - The stock is trading at a premium, with a forward 12-month Price/Sales ratio of 15.58X compared to the Internet Software industry's 5.45X [12] - The consensus estimate for Snowflake's fiscal 2026 earnings is $1.17 per share, indicating a year-over-year increase of 40.96% [15]

Core Insights - Snowflake (SNOW) is experiencing robust growth due to its leadership in cloud-based data analytics and AI-driven solutions, with product revenues reaching $1.09 billion, a 32% increase year over year in Q2 of fiscal 2026 [1][11] Company Performance - The company reported a net revenue retention rate of 125% in Q2 of fiscal 2026, indicating strong customer adoption and usage [2] - The customer base grew by 19% year over year, reaching 12,062 customers in Q2 of fiscal 2026, with 654 customers generating over $1 million in trailing 12-month product revenues [2][11] - Snowflake's partnerships with major cloud providers, particularly Microsoft Azure, contributed to growth, with Azure experiencing a 40% year-over-year growth in Q2 of fiscal 2026 [4][11] AI Integration and Collaborations - Snowflake's focus on AI integration, including products like Cortex AI SQL and Snowflake Intelligence, enhances its analytics capabilities, allowing enterprises to gain deeper insights and automate workflows [3] - A recent collaboration with Siemens aims to connect operational technology (OT) and information technology (IT) data, leveraging AI-driven insights to improve operational efficiency [5] Competitive Landscape - Snowflake faces significant competition from companies like Alphabet (GOOGL) and Datadog (DDOG), both of which are expanding their presence in the cloud analytics market [6] - Alphabet's Google Cloud revenues grew by 31.7% year over year, reaching $13.62 billion in Q2 of fiscal 2025, indicating strong competition in the sector [7] - Datadog reported an increase in its customer base, with 3,850 customers generating an annualized run rate of $100,000 or more, reflecting strong demand for its offerings [8] Stock Performance and Valuation - Snowflake's stock has appreciated by 48.7% year to date, outperforming the broader Zacks Computer & Technology sector's return of 22.4% and the Zacks Internet Software industry's increase of 26.5% [9] - The stock is trading at a premium, with a forward 12-month Price/Sales ratio of 14.79X compared to the Internet Software industry's 6.01X [12] - The consensus estimate for SNOW's fiscal 2026 earnings is $1.17 per share, reflecting a 40.96% year-over-year increase [14]

Core Insights - Snowflake (SNOW) and Alphabet (GOOGL) are significant players in the cloud data and analytics market, with Snowflake focusing on cloud data warehousing and analytics, while Alphabet offers similar services through Google Cloud's BigQuery [1][2] Market Overview - The global cloud analytics market was valued at $35.39 billion in 2024 and is projected to reach $130.63 billion by 2030, with a CAGR of 25.5% from 2025 to 2030, indicating strong growth potential for both Snowflake and Alphabet [2] Snowflake (SNOW) Performance - Snowflake reported a net revenue retention rate of 125% in Q2 fiscal 2026, with a 19% year-over-year increase in customers, totaling 12,062 [3][10] - The company launched around 250 new capabilities in the first half of fiscal 2026, enhancing data management and AI-driven insights [4] - Over 6,100 customers are utilizing Snowflake's AI and ML technology weekly, reflecting strong engagement [5] - Snowflake's collaboration with OpenAI, Anthropic, and Microsoft Azure has contributed to its growth, with Azure showing 40% year-over-year growth in Q2 fiscal 2026 [6][10] Alphabet (GOOGL) Performance - Alphabet's Google Cloud revenues increased by 31.7% year-over-year to $13.62 billion in Q2 2025, showcasing rapid growth in the cloud computing market [8][10] - Google Cloud has established a strong partnership with NVIDIA, being the first cloud provider to offer NVIDIA's latest GPUs [9] - Google Cloud operates 42 cloud regions and 127 zones globally, positioning itself as the third-largest cloud provider [11] Stock Performance and Valuation - Year-to-date, SNOW shares surged 48.5%, outperforming GOOGL's 21.8% gain, driven by a strong portfolio and expanding partnerships [10][12] - Both companies are currently considered overvalued, with SNOW trading at a forward Price/Sales ratio of 14.74X, compared to GOOGL's 7.70X [14] Earnings Estimates - The Zacks Consensus Estimate for SNOW's fiscal 2026 earnings is $1.08 per share, reflecting a 30.12% year-over-year increase [17] - Alphabet's 2025 earnings estimate is $10 per share, indicating a 24.38% year-over-year increase [17] Conclusion - Both SNOW and GOOGL are well-positioned to benefit from the growing cloud analytics market, but Alphabet's broader ecosystem and stronger infrastructure may offer more stability and growth potential for investors [20]