Snowflake Inc. is experiencing a surge in demand for its data analytics platform, fueled by booming enterprise interest in artificial intelligence tools. The company announced bullish fiscal 2027 product revenue forecasts, indicating strong growth ahead.
In its latest fourth-quarter results, Snowflake delivered adjusted earnings of 32 cents per share, exceeding Wall Street's target of 27 cents. Revenue for the period climbed 30% year-over-year to $1.28 billion, surpassing analyst consensus. Product revenue also saw a 30% increase, reaching $1.23 billion.
CEO Sridhar Ramaswamy highlighted a transformative year, stating, "Snowflake sits at the center of the enterprise AI revolution." He emphasized the company's decade-long foundation in making AI safe and scalable, now enhanced with agentic capabilities.
The company's cloud-based data warehouse platform allows businesses to consolidate data for insights, AI training, and operational problem-solving. Its recent Snowflake Intelligence platform, offering conversational data interaction, is already adopted by over 2,500 enterprises.
Despite strong performance, Snowflake's stock has been affected by broader market concerns regarding the software industry. However, the company secured its largest deal to date, exceeding $400 million.
Snowflake projects first-quarter product revenue growth of approximately 27%, a slight slowdown from the previous quarter. For the full year, 27% growth is anticipated, with historical performance suggesting potential to exceed this. Operating margin is projected at 9% for the first quarter, rising to around 12.5% for the full year.
Recent developments include a significant $200 million partnership with OpenAI, bringing generative AI models directly to Snowflake's platform. The company also acquired Observe AI Inc. for approximately $1 billion to enhance its AI data cloud strategy with AI-native observability tools.
Analysts note Snowflake's strong position to benefit from AI growth, despite broader market anxieties.