ServiceNow, Inc.

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ServiceNow, Inc. stock analysis NOW overview
Somewhat Bullish +35

Snowflake Is Up 9% Today: Is It Outperforming Other Cloud Stocks Like ServiceNow?

📈 Snowflake shares surged roughly 9% intraday to approximately $152, outpacing peer ServiceNow which rose only about 5%.

💻 Both stocks are trading as bellwethers for enterprise software sentiment after a brutal year in 2026.

📉 Year-to-date performance shows Snowflake down 36% while ServiceNow is down 42% as of Wednesday's close.

🔄 The market appears to be rotating capital toward data platforms due to AI workload migration narratives and bargain hunting.

🏢 Snowflake's market cap stands at roughly $53.09 billion compared to ServiceNow's $97.63 billion as of mid-morning Thursday.

📊 In Q4 FY2026, Snowflake reported product revenue of $1.23 billion (up 30%) and record net new customers of 740.

⚡ Free cash flow for Snowflake surged to $765 million with a 60% margin in the same quarter.

🤖 AI adoption is accelerating, with over 9,100 accounts using Snowflake AI features and Cortex adoption climbing steadily.

🏭 ServiceNow reported Q4 FY2025 revenue of $3.57 billion (up 21%) but previously faced investor concerns over AI agent displacement.

📉 Despite recent gains, ServiceNow shares remain down 6.5% over the past month versus a 2% gain for Snowflake.

🧠 CEO Bill McDermott positions ServiceNow as "the AI control tower for business reinvention" during sentiment recovery.

🚀 Other sector stocks including Unity Software and Adobe also posted gains of roughly 3% today.

⚠️ Bear investors warn that multiples could continue compressing if AI capital expenditure pressures software budgets.

💰 Bull investors point to durable RPO growth and strong revenue guides implying 20% top-line momentum floors.

🔮 Analysts are watching closely to see if Snowflake can hold its intraday gains through the market close.

Bullish Signals
  • Snowflake stock jumped roughly 9% intraday to around $152, outpacing peers as it leads enterprise software higher.
  • The data cloud platform's fundamentals remain strong with product revenue up 30% year over year to $1.23 billion in Q4 FY2026.
  • Remaining performance obligations grew 42% to $9.77 billion, indicating robust future subscription growth potential.
  • Snowflake added a record 740 net new customers and generated free cash flow of $765 million at a 60% margin.
  • CEO Sridhar Ramaswamy's AI positioning is driving adoption with over 9,100 accounts using Snowflake AI features and Cortex adoption climbing.
  • Snowflake Intelligence attracted approximately 2,500 accounts within three months of launch, demonstrating rapid product traction.
  • The company maintains a strong growth profile with an FY2027 product revenue guide of $5.66 billion implying roughly 20% growth.
  • Sector momentum is positive with adjacent stocks Unity Software and Adobe both up 3% today, signaling broader rotation back toward software.
  • Investors are showing renewed interest in the company as a recovery candidate within the heavily sold-down cloud software group.
Risk Factors
  • Snowflake and ServiceNow stocks are both down significantly year to date, with Snowflake down 36% and ServiceNow down 42%, indicating broader sector weakness.
  • Both companies remain deeply negative on the year despite today's gains, meaning a single positive session does not reverse their poor performance over time.
  • Bear case risks include potential multiple compression if AI capital expenditure pressures cause customers to cut software budgets.
  • ServiceNow stock dropped sharply after its last earnings report due to investor fears regarding SaaS demand displacement from AI agents.
  • Snowflake's valuation and future growth depend on the ability of AI capex to sustainably fund customer spending rather than compressing multiples.
  • The group has traded violently throughout 2026, suggesting high volatility risk for investors sizing positions in these names.
Full Analysis
Snowflake (NYSE:SNOW) surged approximately 9% intraday on Thursday, reaching around $152, while its competitor ServiceNow (NYSE:NOW) rose more modestly by about 5% to roughly $94. Both stocks are viewed as key bellwethers for the enterprise software sector and have both suffered significantly in 2026, with Snowflake down 36% year-to-date and ServiceNow down 42% through Wednesday's close. The market today shows a partial sentiment thaw within the group, driven by bargain hunting, narratives favoring data platforms for AI workloads, and a broader rotation back into software equities. Snowflake's strong performance is supported by robust fundamentals from its Q4 FY2026 earnings reported on February 25, which showed product revenue of $1.23 billion, a 30% year-over-year increase, and remaining performance obligations of $9.77 billion, up 42%. The company added a record 740 net new customers and achieved free cash flow of $765 million with a 60% margin. CEO Sridhar Ramaswamy has emphasized Snowflake's role in enterprise AI, noting that over 9,100 accounts utilize its AI features, with adoption for Cortex and Snowflake Intelligence growing rapidly. This growth profile is currently viewed as the fastest among major data platforms, attracting buyers seeking recovery candidates within a deeply sold-off sector. In contrast, ServiceNow’s recent gains appear more driven by sympathy than a standalone breakout. Following Q4 FY2025 earnings of $3.57 billion (up 21% year over year) and cRPO of $12.85 billion (up 25%), the stock declined as investors worried about SaaS demand being displaced by AI agents, though sentiment has slowly recovered with analysts like Bernstein lifting price targets. CEO Bill McDermott positions ServiceNow as an "AI control tower," but market dynamics suggest capital is rotating preferentially toward faster-growing data platforms like Snowflake. While sector peers such as Unity Software and Adobe are also up today, both Snowflake and ServiceNow still face headwinds including potential AI capex pressures on customer budgets and volatile trading conditions throughout 2026. Investors are now watching whether Snowflake can sustain its intraday gains into the close and if ServiceNow can string together consecutive days of growth to reverse its negative year-to-date trajectory. Bull case proponents point to durable revenue obligations and growth targets implying roughly 20% top-line momentum for both companies, while bears caution that multiples could continue to compress if AI spending continues to strain software budgets. Prudent positioning remains critical given the violent trading history of the cloud software group this year.