Snowflake raised its fiscal 2026 product revenue forecast to $4.40 billion, up from $4.33 billion, driven by strong enterprise demand for AI-powered data analytics services. The cloud analytics company’s shares jumped 11% in extended trading as organizations increasingly prioritize artificial intelligence spending and modernize their data infrastructure.
Key financial results: Snowflake’s second-quarter performance met expectations while showing strong growth momentum.
- Product revenue reached $1.09 billion for the quarter ended July 31, aligning with analyst estimates compiled by LSEG, a financial data provider.
- Remaining performance obligations—a key metric for booked revenue—hit $6.9 billion, representing 33% growth year-over-year.
- The revised annual forecast represents a $70 million increase from previous guidance.
The AI advantage: Snowflake is positioned to benefit from the acceleration in enterprise AI adoption and generative AI application development.
- More organizations are exploring GenAI strategies and building GenAI-powered applications, creating natural demand for Snowflake’s analytics platform.
- Analysts expect Snowflake to be a preferred choice for customers looking to simplify AI technology stacks for analytics purposes.
- The company’s cloud-agnostic platform enables organizations to host and manage AI models from various cloud providers in a single, centralized environment.
Why this matters: Enterprise AI spending is driving significant growth in data infrastructure modernization, with Snowflake capturing substantial market share in the cloud analytics space. The company’s ability to integrate AI models across multiple cloud platforms positions it as a critical enabler for organizations building comprehensive AI strategies.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...