SNOW Earnings Surge 29% Fueled by AI Portfolio Expansion

Recent SNOW earnings reveal a company hitting its stride in the enterprise AI market. Snowflake reported a remarkable fiscal 2026 Q3 performance, with product revenue reaching $1.16 billion—a 29% year-over-year jump that underscores the strength of its data-centric AI strategy. The company’s momentum reflects both the power of its innovative AI solutions and the strategic alliances that continue to strengthen its competitive position.

AI-Driven Revenue Momentum Powers Q3 Performance

At the heart of Snowflake’s earnings growth lies its aggressive AI product strategy. The company’s Intelligence platform and Cortex AI capabilities are fundamentally changing how enterprises process and leverage data. These offerings enable businesses to build and deploy generative AI applications without the traditional data movement complexities that have historically slowed adoption.

The latest SNOW earnings also benefited significantly from major partnership expansions. The enhanced collaboration with Google Cloud—which now integrates Google Cloud Gemini 3 directly into Snowflake Cortex AI—has opened new pathways for enterprises seeking secure, governed AI deployments. This alliance, coupled with continued partnerships spanning SAP, Anthropic, and AWS, creates a ecosystem where data flows seamlessly across platforms.

The numbers tell a compelling story: AI influenced approximately 50% of new bookings during the fiscal third quarter, while 28% of currently deployed use cases now incorporate AI functionality. For fiscal 2026 Q4, Snowflake expects product revenues between $1.195 billion and $1.2 billion, implying 27% year-over-year growth. These projections suggest the company’s earnings trajectory remains steep.

Navigating Intensifying Competition from AWS and Oracle

While SNOW earnings continue climbing, the competitive environment is shifting. Amazon has accelerated its AI ambitions through AWS partnerships—notably combining Infosys Topaz with Amazon Q Developer and Amazon Bedrock to help enterprises build and scale generative AI faster. Oracle, meanwhile, has launched the Fusion Applications AI Agent Marketplace, allowing customers to discover and deploy pre-built AI agents for finance, HR, supply chain, and customer experience functions.

These moves by rival platforms underscore the reality that Snowflake must continue innovating to maintain its leadership position. The competition is no longer about data warehousing alone—it’s about who can provide the most accessible, secure path to enterprise AI.

Valuation Metrics and Forward SNOW Earnings Outlook

From a market perspective, SNOW earnings growth has driven impressive share price appreciation. Snowflake stock has climbed 39% over the trailing 12-month period, outpacing both the Zacks Computer & Technology sector (26.3% return) and the Zacks Internet Software industry (6% growth). However, this strong performance has pushed valuation multiples to premium levels. The stock trades at a forward 12-month Price/Sales ratio of 13.55X, significantly above the Internet Software industry average of 4.77X.

The Zacks Consensus Estimate for fiscal 2026 earnings comes in at $1.20 per share—a 44.58% year-over-year increase. Despite this strong earnings outlook, Snowflake carries a Zacks Rank of #3 (Hold), reflecting the balance between growth prospects and valuation premiums investors are currently paying. For those tracking SNOW earnings and quarterly performance, the forward guidance suggests continued expansion, though investors should weigh the stock’s elevated multiple against its execution track record.