Snowflake expects fiscal 2027 revenue above market estimates

Snowflake Inc.[Symbol:{ "assets":{ "symbol":"SNOW" } }] has issued a fiscal 2027 product revenue forecast that exceeds Wall Street expectations, signaling that the rapid adoption of artificial intelligence is driving significant demand for its cloud-based data analytics platform. The company projects product revenue of $5.66 billion for the fiscal year ending January 31, 2027, which is notably higher than the $5.50 billion average estimate compiled by LSEG. This optimistic outlook is further supported by a first-quarter product revenue forecast ranging between $1.26 billion and $1.27 billion, also beating analyst predictions of $1.23 billion. As enterprise clients ramp up investments to transition workloads to the cloud and build custom AI applications, demand for integrated data storage and compute services has intensified. Snowflake, founded in 2012, allows clients to consolidate data to generate business insights and solve operational challenges. The firm recently launched its Snowflake Intelligence agentic platform, which CEO Sridhar Ramaswamy noted has already been adopted by over 2,500 customers. > "We also signed the largest deal in our history of over $400 million," Ramaswamy told Reuters, though he declined to name the specific client involved in the transaction. Snowflake's consumption-based pricing model faces competition from players like Databricks, which recently raised $5 billion in funding. To bolster its AI capabilities, Snowflake has entered into multi-year, $200 million agreements with both OpenAI and Anthropic to integrate their advanced models into its platform. Additionally, the company recently acquired the app monitoring platform Observe to enhance its ability to troubleshoot software and system performance issues. With a customer base of more than 13,000, including major entities like Figma, Inc.[Symbol:{ "assets":{ "symbol":"FIG" } }] and BlackRock, Inc.[Symbol:{ "assets":{ "symbol":"BLK" } }], the company continues to demonstrate strong momentum. Its fourth-quarter product revenue rose approximately 30% to $1.23 billion, surpassing the estimated $1.18 billion.