Snowflake (SNOW) is set to release second-quarter fiscal 2026 results on Aug. 27. The Zacks Consensus Estimate for earnings is 26 cents per share, a 44.4% year-over-year growth. Revenues are estimated at $1.09 billion, a 24.9% increase from the year-ago quarter. SNOW has beaten earnings estimates in the past four quarters.

SNOW’s expanding clientele, strong AI capabilities, and rich partner base are expected to drive its fiscal second-quarter performance. The company reported a net revenue retention rate of 124% in the first quarter of fiscal 2026 and added 451 net new customers. Snowflake expects product revenues between $1.03 billion and $1.04 billion for the second quarter.

Snowflake shares have outperformed the Computer & Technology sector and Internet Software industry in the year-to-date period. However, SNOW’s valuation is considered stretched at the moment, trading at a premium compared to the industry. The stock currently has a Zacks Rank #3 (Hold).

Snowflake’s AI capabilities, rich partner base, and innovative portfolio are key strengths driving its growth. However, the company faces stiff competition from major cloud providers like Amazon Web Services, Azure, and Google Cloud. Elevated infrastructure spending and stretched valuation are also potential headwinds for SNOW.

Read more at Nasdaq: Buy, Sell or Hold Snowflake Stock? Key Tips Ahead of Q2 Earnings