Snowflake Inc. (NYSE:SNOW) saw its shares climb more than 7% in early U.S. trading after the cloud data company raised its product revenue forecast, buoyed by first-quarter results that exceeded analysts’ expectations.
Industry experts highlight strong and growing demand for Snowflake’s data cloud services, driven by an increasing number of enterprises adopting AI and cloud technologies to manage vast amounts of data. The company has integrated OpenAI’s models into its Cortex AI platform, enhancing its AI capabilities.
During the post-earnings conference call, CEO Sridhar Ramaswamy underscored the transformative potential AI holds for Snowflake’s offerings, describing the future outlook as an “enormous opportunity.”
For the quarter ending April 30, Snowflake posted adjusted earnings of $0.26 per diluted share on revenues of $1.04 billion, surpassing Wall Street estimates of $0.21 earnings and $1.01 billion revenue.
Product revenue climbed 26% year-over-year to $996.8 million during the quarter. Looking ahead, the company expects product revenue in the current quarter to range between $1.035 billion and $1.04 billion.
Snowflake also raised its product revenue guidance for fiscal 2026 to $4.325 billion, up from the prior forecast of $4.28 billion.
“Given that Snowflake tends to guide conservatively, we believe that the strong results and upped fiscal year 2026 guidance demonstrate that the company continues to see steady demand in its core data warehouse business and feels confident in the durability of demand heading into the second quarter,” analysts at Evercore ISI said in a client note.