SnowflakeSNOW shares have surged 32.9% in the trailing six-month period, outperforming the Zacks Computer and Technology sector’s decrease of 9.4% and the Zacks Internet Software industry’s decline of 0.6%.
The outperformance can be attributed to a strong portfolio and an expanding partner base. As of Jan. 31, 2025, SNOW had 11,159 customers, increasing from 9,384 customers as of Jan. 31, 2024. The clientele included 745 of the Forbes Global 2000 and accounted for 45% of SNOW’s fiscal 2025 revenues of $3.6 billion, up 29% from fiscal 2024.
Snowflake is also benefiting from strong adoption and increasing usage of its platform, as reflected by a net revenue retention rate of 126% as of Jan. 31, 2025. The number of customers that contributed more than $1 million in trailing 12-month product revenue increased from 455 to 580 as of Jan. 31, 2024 and 2025, respectively.
Six-Month SNOW Stock Return Performance
Image Source: Zacks Investment Research
SNOW Benefits From Expanding Portfolio
Snowflake’s expanding portfolio has been noteworthy. Products like Apache Iceberg and Hybrid tables, Polaris, Cortex Large Language Model and ML functions are helping Snowflake win new clients.
Building on this momentum, in April 2025, Snowflake enhanced its AI Data Cloud by integrating core capabilities with Apache Iceberg tables. This enabled seamless open lakehouse strategies, improved query performance, comprehensive security, and data sharing while advancing open-source contributions.
Snowflake’s investments in artificial intelligence (AI) and machine learning, including the introduction of Cortex AI and its integration with models from OpenAI and Anthropic, drove customer engagement. More than 4,000 customers are using Snowflake’s AI and ML technology weekly.
SNOW’s Expanding AI Partnerships Drive Growth
SNOW's strong partner base, which includes major players like MicrosoftMSFT, AmazonAMZN, NVIDIANVDA, ServiceNow, Fiserv, EY, LTMindtree, Next Pathway and S&P Global, has been a major growth driver of its success.
Read the full article here: https://www.theglobeandmail.com/investing/markets/stocks/SNOW/pressreleases/32091667/can-snow-stock-continue-its-rally-after-gaining-33-in-six-months/