Snowflake now expects its Product business revenue, which forms 95% of its overall topline, to jump 31% for the fiscal year that will end in January 2027, to $5.84 billion. The figure is higher than the earlier guidance of $5.66 billion that the company had issued in February this year. The revised guidance was also higher than the median projection of analysts, which stood at $5.68 billion.
The company also announced that it will be spending another $6 billion on Amazon Web Services, which includes the use of Amazon’s Graviton processor chips, which are in direct competition with Intel. According to Snowflake CEO Sridhar Ramaswamy, both teams work well together and drive a lot of joint business.
Heading into Thursday’s trading session, shares of Snowflake were down 20% so far in 2026. The stock surged 37%, reversing the entire year-to-date loss, and also delivery gains for the year. This was the biggest single-day surge seen by the stock since September 2020.
CEO Ramaswamy said that Snowflake is seeing increased demand for its main data products and at the same time, their newer, AI-focused tools have become “legitimate businesses in their own right”. Customers who use Snowflake’s AI-assisted coding tools doubled from the previous quarter to reach 7,100.
For the quarter gone by, Snowflake reported a 34% increase in its Project business revenue to $1.33 billion, higher than the $1.27 billion estimate. Remaining performance obligations, a measure of total bookings were at $9.21 billion compared to expectations of $9.43 billion.
