Cloud analytics firm Snowflake forecasts upbeat full-year product revenue
FILE PHOTO: The company logo for Snowflake Inc. is displayed on a banner to celebrate the company's IPO at the New York Stock Exchange (NYSE) in New York, U.S., September 16, 2020. REUTERS/Brendan McDermid/File Photo
Snowflake forecast fiscal 2026 product revenue above analysts' estimates on Wednesday as the data analytics provider sees rising cloud service growth amid advancements in artificial intelligence, sending its shares up 11 per cent in extended trading.
The company also said it has integrated OpenAI's models directly in Snowflake Cortex AI, its fully managed AI service.
Snowflake's data cloud has been seeing strong adoption from firms looking to use AI-powered services to organize swathes of data.
The company said on Wednesday that Chief Financial Officer Michael Scarpelli will retire. He will remain in his role until a successor is found, and will then move into an advisory position.
Snowflake forecast annual 2026 product revenue growth of 24 per cent to $4.28 billion, compared with the average analyst estimate of $4.21 billion, according to data compiled by LSEG.
Businesses are pushing their budgets as they migrate towards cloud-based solutions, ramping sales for businesses such as Snowflake.
The company also forecast first-quarter product revenue between $955 million and $960 million, above estimates of $949.3 million.
Total revenue for the fourth quarter was $986.8 million, beating estimates of $955.9 million.
