SNOW's Multi-Cloud Strategy: Can Partners Power Sustained Expansion?

Snowflake SNOW continues to strengthen its position in the enterprise data landscape as more enterprises shift analytics, governance and AI workloads to its AI Data Cloud. The platform’s ability to unify data across clouds, applications and business units has made it a preferred choice for large enterprises modernizing their data architecture. Partnerships with Microsoft Azure, AWS, Google Cloud and key technology integrators remain central to this strategy, helping Snowflake expand its reach and deliver consistent performance across multi-cloud environments.The ecosystem support is translating into steady enterprise customer growth. The Zacks Consensus Estimate for fiscal third-quarter total customers is pegged at 12,482, pointing to 17.6% expansion from the prior year. Large enterprises continue to deepen their engagement as workloads scale. The consensus mark for customers contributing more than one million in trailing 12-month revenues is pegged at 686, highlighting deeper adoption of Snowflake’s broader data and AI capabilities. These trends reflect deepening engagement across industries as organisations consolidate data estates and expand into more advanced workloads.However, while customer growth and partner traction are encouraging, the next phase of Snowflake’s expansion will hinge on the pace at which enterprises ramp consumption and scale AI-driven workloads. These cycles typically take time, as enterprises move from early testing to broader operational use and consumption patterns can fluctuate before stabilising. The consistency of these longer adoption cycles will therefore play a central role in shaping Snowflake’s growth trajectory in the quarters ahead.Snowflake Suffers From Stiff CompetitionSnowflake continues to contend with intensifying competition from Amazon AMZN and Alphabet GOOGL, both of which are expanding aggressively in cloud data, analytics and AI. Amazon’s AWS remains a dominant force as enterprises accelerate cloud migration, with Amazon securing large multiyear deals and deepening its analytics and AI capabilities. At the same time, Alphabet is strengthening its position through Google Cloud and BigQuery, with Alphabet leveraging strong AI integrations and high-performance infrastructure to attract data-heavy workloads. Amazon and Alphabet are further enhancing their offerings through partnerships and advanced GPU deployments, making the competitive environment increasingly challenging for Snowflake.SNOW’s Share Price Performance, Valuation and EstimatesSnowflake shares have appreciated 66.5% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 4.4% and the Zacks Internet Software industry’s growth of 23.6%.SNOW Stock PerformanceImage Source: Zacks Investment ResearchSnowflake stock is trading at a premium, with a forward 12-month Price/Sales of 16.08X compared with the Internet Software industry’s 4.8X. SNOW has a Value score of F.Price/Sales (F12M)Image Source: Zacks Investment ResearchThe consensus mark for SNOW’s fiscal 2026 earnings is pegged at $1.17 per share, down by a penny over the past 30 days. The figure indicates a 40.96% increase year over year.Snowflake Inc. Price and Consensus Snowflake Inc. price-consensus-chart | Snowflake Inc. QuoteSnowflake currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks