Snowflake’s SNOW Cortex platform is experiencing rapid growth as enterprises increase investments in AI-native applications. In the first quarter of fiscal 2026, product revenues reached $996.8 million, marking a 26% year-over-year increase and surpassing the Zacks Consensus Estimate by 6.71%. Cortex supports both internal workflows and customer-facing applications, enabling users to create AI tools using natural language and access company data securely.
Key enhancements to Cortex, including AISQL for querying data and access to models like Meta’s Llama 4 and OpenAI, have led to over 5,200 weekly active accounts. Notable users include Kraft Heinz and Luminate Data, leveraging Cortex to automate workflows and improve retail analytics, respectively. Despite this growth, Cortex is facing competition from C3.ai and ServiceNow, both actively expanding their enterprise AI offerings.
Year-to-date, Snowflake shares have risen 46.2%, outperforming the Computer & Technology sector’s 7.9% growth. The stock trades at a premium with a forward Price/Sales ratio of 15.22X compared to the industry average of 5.85X, and the Zacks Consensus Estimate for fiscal 2026 earnings stands at $1.06 per share, a 27.71% increase year-over-year.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
