Palantir Technologies Inc.

🇺🇸NASDAQ Global Select
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Palantir Technologies Inc. stock analysis PLTR overview
Somewhat Bullish +50

Is Snowflake the New Market Darling of AI Software -- or Will It Follow Palantir's Path?

📈 Snowflake's stock surged 36% on May 28 after beating Wall Street expectations and raising full-year revenue and earnings guidance for fiscal 2027.

💰 Fiscal Q1 revenue increased 33% year-over-year to $1.39 billion, while non-GAAP earnings per share jumped 62.5% to $0.39.

👥 Customer count grew 38% year-over-year to nearly 14,000, with 13,600 accounts now using AI solutions compared to 5,200 a year ago.

💸 Net revenue retention rate reached 126%, indicating existing customers are spending more on Snowflake's offerings than in the prior year.

📦 Remaining performance obligations (RPO) increased 38% year-over-year to $9.2 billion, signaling a robust future growth pipeline.

🚀 Management raised product revenue guidance for fiscal 2027 to 31% growth, up from the previously expected 27%.

⚠️ Despite strong fundamentals, Snowflake's stock is considered expensive, which could weigh on future performance similar to Palantir.

📉 Palantir (PLTR) has slipped 15% in 2026 despite delivering phenomenal growth and raising its full-year guidance.

💹 Palantir trades at a forward earnings multiple of 97x, while Snowflake's valuation is even higher relative to its growth profile.

🤖 AI adoption is accelerating for Snowflake, with the company operating a cloud-based platform for storing, analyzing, and sharing data.

📊 Analysts expect Snowflake's earnings per share to increase by 54% in the current fiscal year to $1.93.

🔍 The article warns that a post-earnings stock pop does not guarantee a sustained bull run if valuation concerns persist.

🏆 The Motley Fool Stock Advisor team identified 10 stocks they believe are better buys than Palantir Technologies right now.

📈 Historical examples show Stock Advisor's top picks like Netflix and Nvidia produced massive returns years after their recommendations.

⚖️ Investors are advised to assess their risk profile before buying Snowflake given the potential for high valuation drag.

📅 Snowflake's fiscal Q1 ended on April 30, following a period where the stock had lost 19% of its value in 2026.

🔒 The Motley Fool has positions in and recommends both Palantir Technologies and Snowflake, subject to their disclosure policy.

Bullish Signals
  • Snowflake's stock surged 36% on May 28 after beating Wall Street expectations and raising full-year revenue and earnings guidance.
  • Fiscal Q1 revenue increased 33% year over year to $1.39 billion, demonstrating strong top-line growth.
  • Non-GAAP earnings per share jumped an impressive 62.5% year over year to $0.39, indicating robust profitability expansion.
  • The company's overall customer count grew by 38% year over year to almost 14,000, reflecting rapid market adoption.
  • Adoption of AI tools is accelerating with 13,600 customer accounts using AI solutions last quarter, up from 5,200 in the prior year.
  • Snowflake's net revenue retention rate stands at 126%, showing that existing customers are spending significantly more on its offerings.
  • The remaining performance obligations (RPO) increased by 38% year over year to $9.2 billion, signaling a strong future growth pipeline.
  • Management raised product revenue guidance for fiscal 2027 to 31%, an increase from the previously expected 27% growth rate.
Risk Factors
  • Snowflake's stock is trading at an expensive valuation, which could weigh on its future performance similar to how Palantir (NASDAQ: PLTR) has struggled despite delivering phenomenal growth.
  • Palantir's stock has slipped 15% in 2026 while trading at a forward earnings multiple of 97, serving as a cautionary tale for Snowflake which trades at an even higher multiple relative to its earnings.
  • Despite Palantir raising its full-year guidance and delivering strong growth metrics like an 85% year-over-year revenue increase, investor confidence in the stock has not been boosted, suggesting high valuations may limit upside potential regardless of operational success.
Full Analysis
Snowflake (NYSE: SNOW) recently reported strong fiscal first-quarter results, with revenue rising 33% year over year to $1.39 billion and non-GAAP earnings per share increasing 62.5% to $0.39. The company's stock surged 36% following the announcement, driven by a significant jump in its customer base, which grew 38% to nearly 14,000 accounts, and a rapid increase in AI tool adoption, with 13,600 customers using AI solutions compared to 5,200 a year prior. Snowflake's net revenue retention rate of 126% indicates that existing customers are spending more on the platform, while its remaining performance obligations climbed 38% to $9.2 billion, suggesting future revenue acceleration and prompting management to raise full-year product revenue growth expectations to 31%. Analysts project Snowflake's earnings per share will increase by 54% in the current fiscal year to $1.93, with higher growth expectations for subsequent years. However, the article notes that Snowflake's stock is trading at an expensive valuation, drawing a comparison to Palantir Technologies (NASDAQ: PLTR), which has struggled despite delivering phenomenal growth and raising guidance. Palantir's stock has slipped 15% in 2026 while trading at a forward earnings multiple of 97, whereas Snowflake trades at a higher multiple relative to its earnings. The piece suggests that investors should be cautious about the high valuation potentially weighing on future performance, even as the company continues to expand its AI capabilities and customer base.