Company beats expectations, raises its revenue forecast and says AI is already driving a significant share of its business acceleration
Snowflake shares surged on Wall Street Thursday, September 3, after the cloud computing company reported better-than-expected results and raised its revenue forecast for the year.
The rally was driven largely by growing demand for artificial intelligence-related services. Shares jumped nearly 25% during trading before closing the day 16.6% higher.
Artificial intelligence drives business growth
Snowflake provides a platform that companies use to store, organize and analyze large amounts of data in the cloud.
As artificial intelligence continues to expand, that data has become even more valuable for companies looking to develop and use AI tools.
According to Snowflake CEO Sridhar Ramaswamy, artificial intelligence-related products accounted for approximately half of the company’s recent acceleration in growth.
AI tools gain traction among businesses
Among the products gaining momentum are Cortex Code, an AI-powered coding assistant, and CoWork, a tool designed for business environments.
The company said Cortex Code has already reached more than 9,100 accounts, while CoWork has reached more than 5,800.
In its fiscal second quarter, Snowflake’s product revenue increased 37% from the same period a year earlier, reaching $1.49 billion.
Company raises its forecast
Following the results, Snowflake raised its fiscal 2027 product revenue forecast from $5.84 billion to $6.07 billion.
Wall Street reacted strongly. At least 34 brokerages raised their price targets for Snowflake shares following the earnings report.
The company’s performance also helped lift shares of other software companies, including Salesforce, ServiceNow and Adobe.
Source: Reuters
