Snowflake boosts annual product revenue outlook by 5%

Snowflake’s data analytics services are seeing growing demand as companies prioritize AI investments, leading to raised fiscal forecasts and share price gains. The company has strategically integrated AI capabilities into its cloud platform through partnerships with major AI companies, allowing customers to build more sophisticated AI models for data processing. This cloud-based approach positions Snowflake to capitalize on the enterprise shift toward AI application development while exceeding financial expectations.

The big picture: Snowflake raised its fiscal 2026 product revenue forecast after surpassing first-quarter expectations, reflecting strong demand for its AI-enhanced data analytics services.

• The company’s shares rose 6% to $190.09 in extended trading following the announcement, continuing a positive trend that has seen the stock climb 16% so far this year.
• Snowflake now projects fiscal 2026 product revenue of $4.325 billion, up from its previous target of $4.28 billion.

Key details: Snowflake’s integration of artificial intelligence into its cloud platform through partnerships with OpenAI and Anthropic is driving growth by enabling more advanced data processing capabilities.

• These strategic AI partnerships have expanded Snowflake’s customer base to include more companies looking to build AI agents through its platform.
• The company is benefiting from increased enterprise spending as businesses migrate workloads to the cloud while simultaneously developing AI applications.

Behind the numbers: Snowflake’s first-quarter performance exceeded analyst expectations across key financial metrics.

• Product revenue increased approximately 26% to $996.8 million, surpassing estimates of $959.2 million (which represented projected growth of 21.5%).
• On an adjusted basis, the company earned 24 cents per share, compared to analysts’ expectations of 21 cents per share.

Where we go from here: Snowflake forecasts continued strong performance for the current quarter, projecting product revenue between $1.035 billion and $1.040 billion.

• This outlook exceeds analyst estimates of $1.021 billion, according to data compiled by LSEG.