SNOW's Multi-Cloud Strategy: Can Partners Power Sustained Expansion?

Snowflake SNOW continues to strengthen its position in the enterprise data landscape as more enterprises shift analytics, governance and AI workloads to its AI Data Cloud. The platform’s ability to unify data across clouds, applications and business units has made it a preferred choice for large enterprises modernizing their data architecture. Partnerships with Microsoft Azure, AWS, Google Cloud and key technology integrators remain central to this strategy, helping Snowflake expand its reach and deliver consistent performance across multi-cloud environments.

The ecosystem support is translating into steady enterprise customer growth. The Zacks Consensus Estimate for fiscal third-quarter total customers is pegged at 12,482, pointing to 17.6% expansion from the prior year. Large enterprises continue to deepen their engagement as workloads scale. The consensus mark for customers contributing more than one million in trailing 12-month revenues is pegged at 686, highlighting deeper adoption of Snowflake’s broader data and AI capabilities. These trends reflect deepening engagement across industries as organisations consolidate data estates and expand into more advanced workloads.

However, while customer growth and partner traction are encouraging, the next phase of Snowflake’s expansion will hinge on the pace at which enterprises ramp consumption and scale AI-driven workloads. These cycles typically take time, as enterprises move from early testing to broader operational use and consumption patterns can fluctuate before stabilising. The consistency of these longer adoption cycles will therefore play a central role in shaping Snowflake’s growth trajectory in the quarters ahead.

Snowflake Suffers From Stiff Competition

Snowflake continues to contend with intensifying competition from Amazon AMZN and Alphabet GOOGL, both of which are expanding aggressively in cloud data, analytics and AI. Amazon’s AWS remains a dominant force as enterprises accelerate cloud migration, with Amazon securing large multiyear deals and deepening its analytics and AI capabilities. At the same time, Alphabet is strengthening its position through Google Cloud and BigQuery, with Alphabet leveraging strong AI integrations and high-performance infrastructure to attract data-heavy workloads. Amazon and Alphabet are further enhancing their offerings through partnerships and advanced GPU deployments, making the competitive environment increasingly challenging for Snowflake.

SNOW’s Share Price Performance, Valuation and Estimates

Snowflake shares have appreciated 66.5% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 4.4% and the Zacks Internet Software industry’s growth of 23.6%.

SNOW Stock Performance

Image Source: Zacks Investment Research

Snowflake stock is trading at a premium, with a forward 12-month Price/Sales of 16.08X compared with the Internet Software industry’s 4.8X. SNOW has a Value score of F.

Price/Sales (F12M)

Image Source: Zacks Investment Research

The consensus mark for SNOW’s fiscal 2026 earnings is pegged at $1.17 per share, down by a penny over the past 30 days. The figure indicates a 40.96% increase year over year.

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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This article originally published on Zacks Investment Research (zacks.com).

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