Microsoft (MSFT) reported a third-quarter fiscal 2025 cloud revenue of $42.4 billion, a 20% increase year-over-year, with Azure and cloud services growing by 33%. Snowflake (SNOW) achieved $996.8 million in product revenues for Q1 fiscal 2026, reflecting a 26% year-over-year rise, and boasts 11,578 total customers, 606 of whom generated over $1 million in trailing 12-month revenues. The global cloud data platform market is projected to grow from $22.78 billion in 2025 to $104.50 billion by 2033, at a CAGR of 24.3%.
Microsoft’s Azure services support 60% of Fortune 500 companies using PostgreSQL, while their Fabric analytics solution gained 21,000 paid customers, an 80% increase year-over-year. Meanwhile, Snowflake’s customer retention rate stood at 124%, highlighting strong upsell momentum. In year-to-date stock performance, SNOW shares rose 43.5%, compared to a 18.3% increase for MSFT.
In terms of valuation, Snowflake trades at 14.94X forward Price/Sales compared to Microsoft’s 11.7X. Current earnings estimates suggest a projected share price of $1.06 for SNOW in fiscal 2026, a 27.71% increase year-over-year, versus $13.36 for MSFT, reflecting a 13.22% increase.
