Is It Outperforming Other Cloud Stocks Like ServiceNow?

Quick Read

• Snowflake (SNOW) stock surged 9% on bargain-hunting and AI tailwinds, outpacing ServiceNow (NOW) stock, which gained 6% amid broad cloud software recovery sentiment.

• Bargain-hunting in heavily sold-off cloud software names combined with investor rotation toward faster-growing data platforms and AI adoption narratives is pulling Snowflake ahead of ServiceNow.

• The analyst who called NVIDIA in 2010 just named his top 10 stocks and ServiceNow wasn’t one of them. Get them here FREE.

Shares of Snowflake (NYSE:SNOW) are climbing in early Thursday trading, jumping roughly 9% intraday to around $152. The data cloud platform is leading enterprise software higher and outpacing peer ServiceNow (NYSE:NOW), which is also green but rising at a slower clip.

ServiceNow stock is trading 5% higher to around $94, a respectable bounce in its own right. On a percentage basis, however, Snowflake is clearly out in front today, and the gap matters given how often these two names trade together.

Both stocks are widely watched bellwethers for enterprise software sentiment. Snowflake’s market cap sits at roughly $53.09 billion, while ServiceNow’s is closer to $97.63 billion as of mid-morning Thursday.

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The contrast deserves attention because both names have been hammered in 2026. Snowflake stock entered Thursday down 36% year to date, while ServiceNow shares were sitting down 42% year to date through Wednesday’s close. Today’s tape hints at a partial sentiment thaw across the cloud software group.

Snowflake Pulls Ahead in a Brutal Cloud Tape

The pop has no single confirmed catalyst, but the backdrop has been building for weeks. Bargain-hunting in heavily sold-down cloud names, AI workload migration narratives favoring data platforms, and a broader rotation back toward software are all in the mix. Snowflake’s pitch as the data layer for enterprise AI keeps attracting buyers whenever sentiment thaws.

The fundamentals have held up. In Q4 FY2026, reported February 25, Snowflake posted product revenue of $1.23 billion, up 30% year over year, and remaining performance obligations of $9.77 billion, up 42%. The company added a record 740 net new customers, and free cash flow surged to $765 million at a 60% margin.

CEO Sridhar Ramaswamy has leaned hard into AI positioning, with over 9,100 accounts using Snowflake AI features and Cortex adoption climbing. Snowflake Intelligence reached approximately 2,500 accounts within three months of launch. For investors hunting a recovery candidate inside a sold-off group, that growth profile remains the fastest among major data platforms.

ServiceNow Climbs Too, but at a Slower Clip

ServiceNow’s gain looks more like a sympathy move than a standalone breakout. The workflow automation leader reported Q4 FY2025 revenue of $3.57 billion, up about 21% year over year, with cRPO of $12.85 billion, up 25%. Yet the stock dropped sharply after that earnings report as investors fretted about SaaS demand displacement from AI agents.

Sentiment has slowly recovered. Bernstein recently lifted its ServiceNow price target to $236 with a mixed read coming out of the company’s Analyst Day. You can find more in our ServiceNow analyst day coverage, which captures why the bulls and bears are still split on the name.

ServiceNow CEO Bill McDermott has framed the company as “the AI control tower for business reinvention.” Today’s tape suggests fast money is rotating into faster-growing data platforms first. Over the past month, NOW shares are still down 6.5% versus a 2% gain for SNOW stock, reinforcing the relative-strength story.

Meanwhile, sector-adjacent stocks Unity Software (NYSE:U) and Adobe (NASDAQ:ADBE) are both up 3% today.

What to Watch Next

One green session doesn’t reverse a brutal year for cloud software. The bear case is straightforward: multiples can keep compressing if AI capex pressures customer software budgets, and both names remain deeply negative on the year.

The bull case is that washed-out positioning, durable RPO growth, and AI-linked product cycles are finally pulling in real capital. Snowflake’s FY2027 product revenue guide of $5.66 billion and ServiceNow’s FY2026 subscription guide of $15.53 billion to $15.57 billion both imply growth in the 20% range. That floor on top-line momentum is what the bulls keep pointing to.

So yes, Snowflake is outperforming ServiceNow today and on a year-to-date basis, even with both stocks in the red. Watch for whether SNOW shares hold their intraday gains into the close and whether NOW stock can string together consecutive up days. Prudent investors should size positions carefully given how violently this group has traded in 2026.

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