Key Highlights
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Atlassian’s cloud platform is gaining significant momentum, enhancing team efficiency through its collaboration and project management tools.
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Snowflake’s analytical toolset is also experiencing notable growth, leading to consistent increases in revenue and free cash flow.
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Salesforce remains the top player in customer relationship management software, enjoying robust revenue and profit growth.
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Here are 10 stocks we believe outperform Snowflake ›
Investing in a portfolio of growth stocks over time is a reliable strategy for accumulating wealth, particularly as you prepare for retirement. Legendary investor Warren Buffett built his fortune by acquiring and retaining solid companies over multiple decades. But what strategies can you use to make investment decisions?
One promising sector is technology. Technology stocks are well-positioned as digitalization and artificial intelligence (AI) fuel demand for cloud computing and online services. Companies providing subscription services (SaaS) present even more attractive investment prospects, as these models secure long-term customer commitments, leading to predictable revenue streams. Moreover, these businesses often operate within vast total addressable markets that allow for long-term growth potential.
Where should you invest $1,000 right now? Our analyst team has identified the 10 best stocks to consider at this time. Continue »
1. Atlassian
Atlassian (NASDAQ: TEAM) delivers a cloud-based platform that enhances teamwork and project management. Over the past three years, Atlassian has seen substantial growth in revenue and gross profit, as outlined in the table below. The company has also improved its free cash flow during the same timeframe.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $3.535 billion | $4.359 billion | $5.215 billion |
| Gross profit | $2.901 billion | $3.555 billion | $4.320 billion |
| Gross profit margin | 82.1% | 81.6% | 82.8% |
| Free cash flow | $842.299 million | $1.415 billion | $1.416 billion |
Data sourced from Atlassian. Fiscal years finish on June 30.
Atlassian serves over 300,000 customers across various sectors, with increasing spend from clients. The number of customers generating over $100,000 annually jumped from 38,726 in Q4 2023 to 51,978 recently, and more than 500 clients have surpasses $1 million in spending. The company anticipates an 18% revenue growth year-over-year for fiscal 2026, along with a gross profit margin of 83.5%.
To fuel ongoing growth, Atlassian focuses on three key strategies: enterprise solutions, the system of work, and AI integration. The implementation of AI features in its software has increased nearly 20 times year-over-year. Atlassian’s Teamwork Collection aims to centralize collaboration applications for users within organizations. Furthermore, a new partnership with Google Cloud will enhance AI capabilities, promising to boost productivity and collaboration for its clients. Management sees a total addressable market of $67 billion, projected to grow at 13% annually.
2. Snowflake
Snowflake (NYSE: SNOW) offers an AI-driven data cloud that integrates various data sources for secure sharing and analytics. The acceptance of Snowflake’s offerings has driven significant revenue and gross profit growth, as illustrated in the following table.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $2.066 billion | $2.806 billion | $3.626 billion |
| Gross profit | $1.348 billion | $1.908 billion | $2.412 billion |
| Gross profit margin | 65.2% | 68% | 66.5% |
| Free cash flow | $495.799 million | $750.159 million | $883.962 million |
Data sourced from Snowflake. Fiscal years finish on January 31.
In the first half of fiscal 2026, Snowflake experienced a year-over-year revenue increase of 28.8% to $2.2 billion. Gross profit rose by 29% to $1.47 billion, and free cash flow stood at a healthy $240.3 million. The company’s customer base increased by nearly 19% to 12,062, with higher spending trends noted; the number of clients exceeding $1 million in product revenue grew by 30%. Snowflake forecasts a 27% revenue growth for fiscal 2026.
Snowflake is also focusing on collaborations to enhance their offerings. Recently, the company announced a partnership with Acxiom to create an AI-powered marketing data framework for brands. Its net revenue retention rate is an impressive 125%, and management estimates a total addressable market of $170 billion that could exceed $355 billion by 2029.
3. Salesforce
Salesforce (NYSE: CRM) is a frontrunner in customer relationship management software, featuring the AI Agentforce for enterprises. The company has consistently grown its revenue, alongside a notable increase in net income and free cash flow.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $31.352 billion | $34.857 billion | $37.895 billion |
| Operating income | $1.030 billion | $5.011 billion | $7.250 billion |
| Net income | $208 million | $4.136 billion | $6.197 billion |
| Free cash flow | $6.313 billion | $9.498 billion | $12.434 billion |
Data sourced from Salesforce. Fiscal years end on January 31.
In the first quarter of fiscal 2026, Salesforce reported a 7.6% year-over-year revenue growth to $9.8 billion, and operating income increased by 13.6% to $1.9 billion. Free cash flow rose to $6.3 billion, a 3.5% increase. Its remaining performance obligations also solidified, climbing 12% year-over-year to $29.6 billion. A quarterly dividend of $0.416 has been declared, outpacing last year’s $0.40.
The firm continues its growth trajectory via software advancements and acquisitions, including the launch of Agentforce 3 to improve AI tracking. Additionally, acquiring Informatica enhances their AI capabilities. Management has raised its fiscal 2026 revenue guidance from 7%-8% to 8%-9%, revealing confidence in its future trajectory. Salesforce anticipates a total addressable market of $290 billion by 2026, growing at a compound annual rate of 13%.
Should you invest $1,000 in Snowflake now?
Before investing in Snowflake, consider the following:
The Motley Fool Stock Advisor analyst team has recently identified their 10 best stocks for investors to buy at present… and Snowflake isn’t on that list. The stocks chosen could significantly outperform in the coming years.
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*Stock Advisor returns as of August 25, 2025
Annie Dean, Vice President at Atlassian, is a board member at The Motley Fool. Royston Yang holds no positions in any discussed stocks. The Motley Fool has vested interests in and recommends Atlassian, Salesforce, and Snowflake. Please review the disclosure policy.
Disclaimer: This information is for general purposes only. Past performance does not guarantee future outcomes.
