Snowflake Boosts Annual Product Revenue Forecast in Latest Update
On Wednesday, Snowflake increased its fiscal 2026 projection for product revenue, banking on robust demand for its data analysis tools due to businesses focusing more on AI expenditures.
Following the release of better-than-expected first-quarter earnings and an optimistic outlook for second-quarter revenues, the corporation’s share price increased by 6%, closing at $190.09 during post-market hours. Year-to-date, Snowflake’s stock value has climbed by 16%.
Snowflake’s initiative to incorporate artificial intelligence into its cloud platform via collaborations with OpenAI and Anthropic enables clients to develop and deploy more sophisticated AI models for efficiently managing extensive datasets.
The firm is additionally profiting from increased corporate investment as businesses move their operations to the cloud and seek to create AI applications.
Snowflake’s artificial intelligence initiatives and collaborations with other startups have enabled it to serve a broader range of businesses seeking to develop AI agents via its platform, according to analysts.
The firm predicted product revenues between $1.035 billion and $1.040 billion for the present quarter, as per estimates from LSEG which stand at $1.021 billion.
In the first quarter, Snowflake’s product revenue increased approximately 26% to reach $996.8 million, surpassing expectations of a 21.5% rise to $959.2 million.
It now targets fiscal 2026 product revenue of $4.325 billion, compared with its prior target of $4.28 billion.
Adjusted for changes, the company reported earnings of 24 cents per share in the initial quarter, surpassing predictions which stood at a profit of 21 cents per share.
(Reported by Zaheer Kachwala and Juveria Tabassum from Bengaluru; Edited by Vijay Kishore and Alan Barona)