{"id":616426,"date":"2026-02-26T01:48:29","date_gmt":"2026-02-26T01:48:29","guid":{"rendered":"https:\/\/www.europesays.com\/us\/616426\/"},"modified":"2026-02-26T01:48:29","modified_gmt":"2026-02-26T01:48:29","slug":"snowflake-expects-annual-product-revenue-above-estimates-as-ai-boosts-demand","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/616426\/","title":{"rendered":"Snowflake expects annual product revenue above estimates as AI boosts demand"},"content":{"rendered":"\n

By Jaspreet Singh<\/p>\n

Feb 25 (Reuters) – Snowflake forecast fiscal 2027 product revenue above Wall Street estimates on Wednesday, as booming enterprise demand for artificial intelligence<\/a> tools drives \u200cclients to the company’s cloud-based data analytics platform.<\/p>\n

Enterprise clients are increasingly shifting their \u200cworkloads to the cloud while making investments to develop AI applications, boosting demand for companies like Snowflake.<\/p>\n

Shares dropped about \u200b2% in extended trading after Snowflake’s results and forecasts failed to impress investors amid market fears that the growing use of AI tools would erode demand for traditional software.<\/p>\n

“Investors are skeptical about all software companies right now … As Snowflake continues to accelerate throughout the rest of the year, \u200cwe would expect investors to \u2060realize Snowflake is benefiting significantly from the growth of AI,” said D.A. Davidson analyst Gil Luria.<\/p>\n

Snowflake offers a platform where clients store and integrate \u2060their data in one place to generate business insights, build AI tools and solve crucial operational problems.<\/p>\n

The company made its Snowflake Intelligence agentic platform available in November. It is now adopted by \u200bmore than \u200b2,500 customers, CEO Sridhar Ramaswamy told Reuters.<\/p>\n

“We also \u200bsigned the largest deal in our \u200chistory of over $400 million,” Ramaswamy said, without disclosing the client name.<\/p>\n

Snowflake expects product revenue of $5.66 billion for the fiscal year ending January 31, 2027, above analysts’ average estimate of $5.50 billion, according to data compiled by LSEG.<\/p>\n

First-quarter product revenue forecast of $1.26 billion to $1.27 billion came in above estimates of $1.23 billion at its midpoint.<\/p>\n

It expects fiscal 2027 product gross margin of 75%, while it reported \u200cfiscal 2026 product gross margin of 75.8%.<\/p>\n

The company, \u200bwhich competes with AI startup Databricks, has struck two \u200bseparate multi-year $200 million deals with both OpenAI<\/a> \u200band Anthropic to integrate their advanced models into its platform for \u200cboosting enterprise AI adoption.<\/p>\n

Snowflake bought app-monitoring platform \u200bObserve for $600 million in \u200ba cash-and-stock deal, seeking to enhance its ability to troubleshoot software, system and data performance issues.<\/p>\n

The company, which has more than 13,000 clients, including names such as Figma \u200band BlackRock, said its fourth-quarter \u200cproduct revenue rose about 30% to $1.23 billion, beating estimates of $1.18 billion.<\/p>\n

Adjusted earnings per \u200bshare of 32 cents beat estimates of 27 cents.<\/p>\n

(Reporting by Jaspreet Singh in \u200bBengaluru; Editing by Alan Barona and Tasim Zahid)<\/p>\n","protected":false},"excerpt":{"rendered":"By Jaspreet Singh Feb 25 (Reuters) – Snowflake forecast fiscal 2027 product revenue above Wall Street estimates on…\n","protected":false},"author":3,"featured_media":616427,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21],"tags":[691,22265,738,74692,248613,264246,264247,158,67,132,68,69192],"class_list":["post-616426","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-applications","tag-artificial-intelligence","tag-data-analytics","tag-enterprise-clients","tag-product-revenue","tag-sridhar-ramaswamy","tag-technology","tag-united-states","tag-unitedstates","tag-us","tag-wall-street-estimates"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116134419028075063","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/616426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=616426"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/616426\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/616427"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=616426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=616426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=616426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}