Snowflake (SNOW, Financial) has significantly raised its full-year product revenue forecast to $4.33 billion, driven by innovations in AI tools and market demand. Despite recent tariff policy adjustments, the company reports no substantial impact on its business.
In its latest financial report, Snowflake revealed that its main product revenue is expected to grow by approximately 25% to $1.04 billion, surpassing analysts' average expectation of $1.03 billion. This marks the first time the company's quarterly operating income has exceeded $1 billion. Consequently, the annual product revenue forecast increased from $4.28 billion to $4.33 billion.
Snowflake's CFO, Mike Scarpelli, emphasized that current tariff news and other events have not affected the company. This suggests that the software industry, especially data and AI-centric businesses, may not face immediate negative impacts from trade tensions.
Snowflake's strong performance led to a 7% increase in its stock price during after-hours trading, closing at $179.12. The stock has rebounded by 37% since its low on April 4, 2025.
CEO Sridhar Ramaswamy highlighted the company's focus on AI, aiming to lower the barriers for customers developing generative AI applications on the Snowflake platform. Analysts believe these AI tools could significantly contribute to performance later this year.
Snowflake faces competition from Databricks, Microsoft, and Google. Microsoft recently announced increased adoption of its Fabric data product suite, adding pressure on Snowflake.
