Snowflake Inc. (SNOW) has announced two strategic acquisitions aimed at enhancing its capabilities in the data and AI sectors. In the third quarter of fiscal 2026, Snowflake acquired technology from Datometry to simplify data migration for customers transitioning from older data warehouses, aiming for reduced costs and disruptions. Additionally, Snowflake plans to acquire Observe to strengthen its AI-driven observability features within the Snowflake AI Data Cloud, which includes proactive troubleshooting and full telemetry retention.
Snowflake reported that AI influences 50% of bookings for the third quarter of fiscal 2026, with expectations of product revenues between $1.195 billion and $1.2 billion for the fourth quarter, reflecting 27% year-over-year growth. The company’s earnings estimate for fiscal 2026 stands at $1.20 per share, marking a 44.58% increase from the previous year.
Despite these advancements, Snowflake faces competition from major players like Amazon and Oracle, which are also expanding in the AI realm. In the past six months, Snowflake’s shares have declined by 1.9%, underperforming the broader tech sector, which rose by 20.1% during the same period.
