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Snowflake raises annual product-revenue forecast, sending shares soaring
🇸🇬 Singapore /Technology

Snowflake raises annual product-revenue forecast, sending shares soaring

From CNA · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

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  • Snowflake raised its fiscal 2027 product-revenue forecast to $6.07 billion from $5.84 billion, citing demand for its cloud data platform and artificial-intelligence offerings.
  • The company reported second-quarter product revenue of $1.49 billion, up 37%, while total revenue and adjusted profit exceeded analysts’ estimates.
  • Snowflake shares rose more than 20% in extended trading after the forecast increase and quarterly results.

Snowflake raised its full-year product-revenue forecast and sent its shares more than 20% higher in extended trading, as demand for cloud data services and artificial-intelligence tools continues to strengthen.

The company now expects fiscal 2027 product revenue of $6.07 billion, up from its previous forecast of $5.84 billion. Snowflake has benefited from businesses moving away from legacy systems and adopting AI, supporting demand for its cloud data-warehousing products.

Snowflake’s platform allows businesses to store and analyze information, as well as build applications and AI products. Its offerings include the Cortex Code coding assistant and the CoWork enterprise chatbot.

For the second quarter, product revenue rose 37% to $1.49 billion. Total revenue reached $1.55 billion, above analysts’ average estimate of $1.48 billion, according to LSEG data. Adjusted profit came to 62 cents per share, compared with the 45 cents analysts had expected.

The company also signed a five-year, $6 billion agreement with Amazon Web Services last quarter to use AWS Graviton processors and AI infrastructure.

About this summary

Originally published by CNA in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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