Categories
May 22, 2025 – San Mateo, CA
Snowflake Inc. (NYSE: SNOW) has raised its annual product revenue forecast for fiscal year 2026. This increase reflects growing demand for its data and artificial intelligence (AI) systems. The company now expects product revenue to reach $4.325 billion in 2026. This amount is up from its earlier projection of $4.28 billion.
This announcement came with Snowflake’s Q1 earnings release. The company reported $996.8 million in product revenue. This amount represents a 26% year-over-year increase. It also surpassed Wall Street expectations.
“Our strong start to the fiscal year reflects growing enterprise adoption and the increasing importance of data infrastructure in the age of AI,” said Sridhar Ramaswamy, the director of Snowflake. “We’re seeing rapid traction in AI workloads as customers leverage Snowflake to build and deploy intelligent applications.”
Snowflake predicts that product revenue will be between $1.035 billion and $1.040 billion in the upcoming quarter, surpassing analysts’ projections as well.
Strategic alliances with leading AI companies like OpenAI and Anthropic enhance the company’s optimistic outlook, enabling customers to easily incorporate large-language models (LLMs) into their data environments.
The company’s announcement caused Snowflake’s stock to rise more than 6% in after-hours trading.
Furthermore, its scalable cloud infrastructure as well as AI-powered innovation put it in a superior place, particularly in the current very competitive business market.
For updates, stay connected with us via AtoZTech World or check out our Facebook page.
