10 Best Stocks to Buy for the Next 5 Years

5. Snowflake Inc. (NYSE:SNOW)

EPS Forward Long Term Growth (3-5 Year CAGR): 45.75%

Number of Hedge Fund Holders: 102

Snowflake Inc. (NYSE:SNOW) is one of the best stocks to buy for the next 5 years. On December 4, Scotiabank raised the firm’s price target on Snowflake to $290 from $280 with an Outperform rating on the shares. The firm pointed out that although the company’s FQ3 2026 product revenue was strong, it failed to meet the lofty whisper numbers of institutional investors. However, Scotiabank maintains its positive outlook on the company due to the evidence of robust customer spending trends.

In its FQ3 earnings report, Snowflake announced that it achieved product revenue of $1.16 billion, which marked a 29% year-over-year increase, while total consolidated revenue reached $1.21 billion. Snowflake’s Remaining Performance Obligations/RPO surged 37% to $7.88 billion, reflecting significant long-term contract momentum. The company added 615 new customers during the quarter, including 31 who contribute more than $1 million in trailing 12-month revenue. This brought the total number of Global 2000 customers to 766, with this elite group spending an average of $2.3 million annually.

A primary highlight of the quarter was Snowflake reaching a $100 million AI revenue run rate one quarter earlier than internal projections. This milestone was supported by the rapid adoption of Snowflake Intelligence. To further its AI leadership, Snowflake announced a $200 million partnership with Anthropic to integrate advanced Claude models directly into the Snowflake AI Data Cloud. Additionally, a new strategic alliance with SAP was launched, introducing SAP BDC Connect to provide customers with zero-copy access to mission-critical ERP data.

Looking ahead, Snowflake raised its full-year FY2026 product revenue guidance to $4.446 billion, an increase representing 28% annual growth. For the upcoming fourth quarter, the company expects product revenue to fall between $1.195 and $1.2 billion.

Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform for various organizations in the United States and internationally.