Home / Business and Economy / Snowflake Surges Past AI Revenue Estimates
Snowflake Surges Past AI Revenue Estimates
26 Feb
Summary
- Snowflake projects fiscal 2027 product revenue exceeding Wall Street expectations.
- Over 2,500 customers adopted Snowflake's Intelligence platform since November.
- Company signed two major $200 million deals with AI leaders OpenAI and Anthropic.
Snowflake projects fiscal 2027 product revenue to surpass Wall Street's expectations, signaling strong client demand for its cloud data analytics platform, largely propelled by the accelerating adoption of artificial intelligence tools.
The company's Snowflake Intelligence agentic platform, launched in November of the previous year, has already been adopted by more than 2,500 customers. CEO Sridhar Ramaswamy highlighted the signing of the company's largest deal to date, valued at over $400 million.
For the fiscal year ending January 31, 2027, Snowflake anticipates product revenue of $5.66 billion, exceeding the LSEG consensus estimate of $5.50 billion. The first-quarter revenue forecast also came in above estimates.
Snowflake has solidified strategic alliances by entering into two separate multi-year $200 million agreements with OpenAI and Anthropic. These collaborations are designed to integrate their advanced AI models into Snowflake's platform, further bolstering enterprise AI capabilities and adoption.
Recent acquisitions, such as the app-monitoring platform Observe, aim to enhance Snowflake's troubleshooting and performance analysis tools. The company, which serves over 13,000 clients including Figma and BlackRock, reported a significant 30% rise in fourth-quarter product revenue to $1.23 billion.
