Snowflake was upgraded twice to Buy in the past week as analysts highlighted a more balanced valuation and accelerating growth drivers despite recent share volatility. The research note cited a moderation in forward multiples relative to enterprise software peers and emphasized the company’s strengthened long-term visibility. Key underpinnings include a 37% year-over-year increase in remaining performance obligations (RPO) to $7.88 billion, reflecting multi-year contract commitments from a broadened customer base. Net revenue retention remains robust at 125%, driven by expanded consumption from existing accounts and rapid adoption of Snowflake’s AI-enhanced warehousing services. With over 8,200 customers now generating more than $1 million in trailing-12-month product revenue, the upgrade thesis centers on sustained high-visibility bookings that support multi-quarter earnings stability.

In its fiscal third quarter, Snowflake delivered product revenue of $1.16 billion, representing a 29% increase year over year, propelled by strong uptake of its AI portfolio, including Snowflake Intelligence and Cortex AI. Customer adds in the quarter included 300 accounts with annualized product revenue above $1 million, bringing the total to more than 1,200 such “mega-customers,” up 25% year over year. Management guided fourth-quarter product revenue to a range between $1.19 billion and $1.20 billion, implying roughly 27% growth on an annualized basis. This outlook incorporates continued cross-sell into existing enterprise relationships and strategic integrations with partners such as Google Cloud, SAP and AWS, which collectively enhance Snowflake’s ecosystem and stickiness by enabling seamless data exchange and advanced analytics use cases.