By Harshita Mary Varghese<\/p>\n
May 27 (Reuters) – Snowflake raised annual product revenue forecast on Wednesday, as enterprises ramped up spending on \u200cAI applications and shifted more data workloads to its cloud \u200cplatform, sending its shares surging 36% in extended trading.<\/p>\n
The company also signed a five-year deal \u200bworth $6 billion with Amazon Web Services to use AWS’ Graviton processors and AI infrastructure, as their partnership deepens around enterprise AI.<\/p>\n
The latest deal will include deeper product integrations around generative and agentic AI, expanded go-to-market efforts \u200cthrough AWS Marketplace and \u2060workload migrations aimed at helping businesses move from experimenting with AI projects to using them routinely.<\/p>\n
“The new deal with \u2060Amazon adds another element to the growth path for Snowflake,” said Gil Luria, managing director of D.A. Davidson.<\/p>\n
“It allows Snowflake to take an even \u200bbigger role \u200bin their customers transition to AI \u200band aligns them even more \u200cwith their biggest partner.”<\/p>\n
Snowflake has benefited from surging enterprise demand for its core data warehousing products, with migrations from legacy systems and increased use of machine learning tools adding momentum. It has seen strong adoption of its tools such as Cortex Code and Snowpark.<\/p>\n
The company raised \u200cits product revenue forecast for fiscal 2027 \u200bto $5.84 billion, from $5.66 billion projected earlier.<\/p>\n
“Based on \u200ba combination of strength in \u200bour core data platform business and meaningful uplift from \u200cAI capabilities… we are increasing our \u200bFY27 outlook,” CEO \u200bSridhar Ramaswamy said on a post-earnings call.<\/p>\n
Snowflake expects second-quarter product revenue to be between $1.415 billion and $1.420 billion, compared with analysts’ average \u200bestimate of $1.37 billion, according \u200cto data compiled by LSEG.<\/p>\n
Its first-quarter revenue came in at $1.39 \u200bbillion, above the estimate of $1.32 billion.<\/p>\n
(Reporting by Harshita Mary Varghese \u200bin Bengaluru; Editing by Shilpi Majumdar)<\/p>\n","protected":false},"excerpt":{"rendered":"By Harshita Mary Varghese May 27 (Reuters) – Snowflake raised annual product revenue forecast on Wednesday, as enterprises…\n","protected":false},"author":3,"featured_media":827351,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[21],"tags":[691,22265,747,2431,738,339717,70517,3722,264246,158,67,132,68],"class_list":["post-827350","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-ai-applications","tag-ai-infrastructure","tag-amazon","tag-artificial-intelligence","tag-aws-marketplace","tag-cloud-platform","tag-enterprise","tag-product-revenue","tag-technology","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116651105042301810","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/827350","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=827350"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/827350\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/827351"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=827350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=827350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=827350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}