Snowflake's AI-Driven Growth Defies Bearish Predictions
Snowflake (SNOW) reported its third consecutive quarter of accelerating product revenue, with CEO Sridhar Ramaswamy attributing nearly half of the growth to AI products. The company’s consumption model converts AI agent queries into direct revenue and strengthens Snowflake's competitive advantage by expanding its governed data infrastructure rather than eroding it. Snowflake raised full-year guidance for FY27 to $6.07 billion in product revenue, representing 36% year-over-year growth, supported by a robust backlog of $9 billion in contracted performance obligations. The company also reported strong financial metrics including non-GAAP operating margin expansion and consistent earnings per share (EPS) beats. The stock reacted positively to the results after hours on September 2, closing at $305.84 during regular trading with a year-to-date gain of nearly 40%. Analysts are highlighting that Snowflake’s growth trajectory appears sustainable due to its AI-driven flywheel effect and strong customer retention.
Tickers: $SNOW