Snowflake Inc. (SNOW) reported a 6.5% increase in share price over the past month, surpassing declines in both the Zacks Computer & Technology sector (4.4%) and the Internet Software industry (1.6%). This growth is attributed to a net revenue retention rate of 126% in the first quarter of fiscal 2027.
As of the first quarter of fiscal 2027, Snowflake has 13,912 total customers, with a net addition of 616 new customers, up 38% year-over-year. Customer spending has also increased, with 779 clients now spending over $1 million annually (+29% YoY) and 64 clients spending over $10 million annually. The consensus estimate for fiscal second-quarter revenues stands at $1.47 billion, suggesting a year-over-year growth of 28.39%.
Despite these positive indicators, Snowflake faces stiff competition from major players like Oracle and Amazon in the AI and cloud space. The company’s valuation is currently stretched with a Price/Sales ratio of 13.48, compared to the industry average of 3.82. It carries a Zacks Rank #3 (Hold), indicating potential caution for investors considering entry points.
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