Snowflake Raises Revenue Forecast on AI-Driven Demand Surge

Snowflake Inc. lifted its fiscal 2026 product revenue forecast to $4.40 billion, exceeding prior guidance of $4.33 billion, as enterprises accelerate AI infrastructure spending. Shares rallied 11% post-market following the cloud analytics firm's bullish outlook.

The company's Q2 product revenue of $1.09 billion matched analyst expectations, while remaining performance obligations jumped 33% year-over-year to $6.9 billion. Snowflake's platform has become a preferred solution for organizations consolidating multi-cloud AI model management.

Market analysts note Snowflake's positioning as a natural beneficiary of generative AI adoption, with enterprises increasingly selecting its unified environment for analytics stack simplification. The revised guidance reflects sustained momentum in data modernization initiatives across corporate sectors.