Snowflake Inc.Product revenue surge, AI adoption, and customer growth strengthen competitive position.

Snowflake is benefiting from accelerating product revenue growth, rising AI adoption, and expanding consumption of its AI Data Cloud, which strengthens its position against Dell Technologies and Oracle. In the first quarter of fiscal 2027, product revenues rose 34% year over year to $1.33 billion, marking the strongest sequential dollar growth on record. Growth is fueled by AI offerings like Cortex Code and Snowflake Intelligence, with the latter's accounts more than doubling sequentially and Cortex Code used across over 7,100 accounts. The company added 616 net new customers in the quarter, up 38% year over year, including 13 new Global 2000 clients, and now serves 13,912 customers with a net revenue retention rate of 126%. Snowflake raised its fiscal 2027 product revenue guidance to $5.84 billion, implying 31% growth, and expects second-quarter product revenues between $1.415 billion and $1.42 billion. Meanwhile, Dell Technologies reported record revenues of $43.8 billion in the same quarter, up 88% year over year, with AI server revenues reaching $16.1 billion and an AI backlog of $51.3 billion, while Oracle introduced Oracle OPERA Cloud Assistant in June 2026. Snowflake shares have gained 43.8% year to date, outperforming the broader sector's 15.4% appreciation, and the Zacks Consensus Estimate for fiscal 2027 earnings is $1.97 per share, indicating a 57.60% year-over-year increase.
Snowflake Inc.Product revenue surge, AI adoption, and customer growth strengthen competitive position.
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