Snowflake has established itself as one of the major software winners in the era of artificial intelligence. After reporting better-than-expected earnings and raising its revenue outlook for a key business segment, investors have gained renewed confidence in the cloud-based data platform provider.
Snowflake CEO Sridhar Ramaswamy attributed the strong quarterly performance to growing adoption of the company’s artificial intelligence products. He said the results demonstrate how the AI transformation taking place across enterprises is strengthening Snowflake’s position as more organizations move their data and workloads onto the platform to build an AI-ready foundation.
Snowflake Shares Surge After Earnings Beat
Shares of Snowflake (SNOW) jumped more than 20% in extended trading Wednesday after the AI data cloud company delivered quarterly results that exceeded analyst expectations and raised its full-year guidance.
The company reported adjusted earnings of $0.62 per share for its fiscal second quarter of 2027, while revenue increased 35% year over year to reach $1.55 billion. Results surpassed analyst estimates of adjusted earnings of $0.45 per share on revenue of $1.48 billion, according to Visible Alpha data.
Snowflake Chief Financial Officer Brian Robins said the company experienced a “meaningful step-up” in AI-related revenue during the quarter. The company added 692 new customers, including 14 businesses from the Forbes Global 2000 list.
AI Demand Drives Snowflake’s Growth
The company highlighted artificial intelligence as a major growth driver, with CEO Sridhar Ramaswamy stating that AI adoption is creating a compounding advantage for Snowflake’s business.
As companies increasingly invest in AI applications, demand has grown for platforms capable of managing, organizing and preparing large amounts of enterprise data. Snowflake aims to position its technology as the data foundation that enables businesses to develop and deploy AI solutions.
Snowflake Raises Full-Year Revenue Forecast
Snowflake expects product revenue for the current quarter to reach between $1.588 billion and $1.593 billion, representing growth of up to 38% compared with the same period last year.
The company also increased its full-year product revenue forecast to $6.07 billion, up from its previous estimate of $5.84 billion, reflecting stronger confidence in demand for its cloud data and AI capabilities.
Investors Remain Optimistic About Snowflake’s AI Strategy
Snowflake’s performance highlights the growing importance of data infrastructure in the artificial intelligence market. As businesses continue adopting AI-powered tools, companies that can provide secure, scalable and AI-ready data environments are becoming increasingly valuable.
Shares of Snowflake were already up nearly 40% for the year through Wednesday’s close, supported by expectations that enterprise AI spending will continue driving growth for cloud software providers.
