Snowflake raised its annual product revenue forecast as businesses increase spending on artificial intelligence and move more data workloads onto its cloud platform. The company now expects fiscal 2027 product revenue of $5.84 billion, up from its previous forecast of $5.66 billion. The stronger outlook reflects growing demand for Snowflake’s data warehousing, analytics, machine learning and AI tools, as companies try to organize their information for generative AI applications.
The company’s first-quarter results also came in ahead of Wall Street expectations. Snowflake reported $1.39 billion in revenue, beating analysts’ estimate of $1.32 billion. For the second quarter, the company projected product revenue between $1.415 billion and $1.420 billion, also above the average analyst estimate of $1.37 billion. That guidance suggests enterprise demand remains strong even as broader software markets face pressure from high valuations and shifting technology budgets.
The main driver is AI adoption. Companies are increasingly realizing that artificial intelligence depends on clean, organized and accessible data. Snowflake’s platform helps businesses store, manage and analyze large amounts of information across cloud systems. As more enterprises build AI assistants, analytics tools and machine-learning models, they need platforms that can connect data securely and at scale. Snowflake has seen strong adoption of tools such as Cortex Code and Snowpark, which support AI, machine learning and data engineering work.
Snowflake also announced a major $6 billion, five-year deal with Amazon Web Services, deepening its relationship with one of the world’s largest cloud providers. Te agreement gives Snowflake access to AWS’s Graviton processors and AI infrastructure, while also expanding integration around generative and agentic AI. The partnership strengthens Snowflake’s position as companies shift more workloads to the cloud and look for infrastructure capable of supporting advanced AI applications.
Investors reacted strongly to the news. Snowflake shares surged in after-hours and premarket trading, with reporting gains of 36% after the forecast raise and later noting a 39% premarket jump. The stock had struggled earlier in the year, but the improved outlook and AWS deal revived confidence that Snowflake can be one of the major winners of the enterprise AI boom. At least 25 analysts raised their price targets after the announcement.
The results also place Snowflake in a highly competitive market. The company faces rivals such as Databricks, Google BigQuery, Microsoft and other cloud-data platforms. Its challenge is to prove that it can grow beyond traditional data warehousing and become a central platform for enterprise AI. The AWS agreement helps because it gives Snowflake more compute access and deeper cloud integration, but it also shows how dependent modern AI software companies are on large infrastructure providers.
Overall, Snowflake’s stronger forecast shows how quickly corporate AI spending is reshaping the software industry. Companies are not only buying chatbots; they are investing in the data systems needed to make AI useful. Snowflake is benefiting from that shift because its platform sits close to the core of enterprise data operations. The company still faces competition and valuation pressure, but its latest results suggest that the AI boom is turning data infrastructure into one of the most important parts of the technology economy.
