Snowflake raises 2026 forecast to $4.4B as AI drives analytics demand

Snowflake raised its fiscal 2026 product revenue forecast to $4.40 billion, up from $4.33 billion, driven by strong enterprise demand for AI-powered data analytics services. The cloud analytics company’s shares jumped 11% in extended trading as organizations increasingly prioritize artificial intelligence spending and modernize their data infrastructure.

Key financial results: Snowflake’s second-quarter performance met expectations while showing strong growth momentum.

• Product revenue reached $1.09 billion for the quarter ended July 31, aligning with analyst estimates compiled by LSEG, a financial data provider.
• Remaining performance obligations—a key metric for booked revenue—hit $6.9 billion, representing 33% growth year-over-year.
• The revised annual forecast represents a $70 million increase from previous guidance.

The AI advantage: Snowflake is positioned to benefit from the acceleration in enterprise AI adoption and generative AI application development.

• More organizations are exploring GenAI strategies and building GenAI-powered applications, creating natural demand for Snowflake’s analytics platform.
• Analysts expect Snowflake to be a preferred choice for customers looking to simplify AI technology stacks for analytics purposes.
• The company’s cloud-agnostic platform enables organizations to host and manage AI models from various cloud providers in a single, centralized environment.

Why this matters: Enterprise AI spending is driving significant growth in data infrastructure modernization, with Snowflake capturing substantial market share in the cloud analytics space. The company’s ability to integrate AI models across multiple cloud platforms positions it as a critical enabler for organizations building comprehensive AI strategies.