Key facts
- Snowflake raised its fiscal 2027 product revenue forecast to $6.07 billion.
- Second-quarter product revenue increased by 37% to $1.49 billion.
- AI products are significantly contributing to Snowflake's growth acceleration.
- Snowflake's coding assistant, Cortex Code, now has over 9,100 accounts.
- The company secured a five-year, $6 billion deal with Amazon Web Services.
Snowflake has raised its annual product revenue forecast, projecting fiscal 2027 revenue to reach $6.07 billion, up from $5.84 billion, driven by robust demand for its cloud data platform and artificial intelligence offerings. The company reported a 37% increase in second-quarter product revenue to $1.49 billion, with AI products accounting for approximately half of the growth acceleration.
CEO Sridhar Ramaswamy stated that AI is creating a "flywheel effect" for the business. Snowflake's AI tools, including the coding assistant Cortex Code and enterprise chatbot CoWork, are seeing increased adoption, with Cortex Code topping 9,100 accounts and CoWork reaching 5,800 accounts.
The company's performance has outpaced the broader market, with shares rising 39% year-to-date. Analysts from Barclays noted continued positive sentiment, while Jefferies highlighted that Snowflake's premium valuation is supported by its leading position in the enterprise data cloud and AI-driven workloads. Snowflake also recently entered into a five-year, $6 billion deal with Amazon Web Services.