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Snowflake shares surge after it tops forecasts and lifts product outlook

The cloud analytics firm said quarterly product revenue rose 37% to $1.49 billion and forecast about $6.1 billion in fiscal-year product revenue.

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Snowflake shares jumped about 26% to $384 after the company beat Wall Street estimates for its quarterly results and raised its full-year product revenue forecast, helped by stronger demand for its cloud data platform and AI offerings.

For the quarter ended July, Snowflake reported product revenue of $1.49 billion, up 37% year over year. Total revenue came in at $1.55 billion, and the company posted adjusted earnings of 62 cents per share versus analysts’ expectations of 45 cents per share.

Snowflake also lifted its outlook for the fiscal year ending in January, targeting approximately $6.07 billion in product revenue, above its May forecast and ahead of analysts’ average projection of $5.86 billion. Remaining performance obligations were $9 billion, compared with an analysts’ average estimate of $9.37 billion.

The company said product sales make up about 95% of total revenue, and CEO Sridhar Ramaswamy attributed the momentum to ongoing enterprise AI demand. The shares opened at $337 and set their highest level since late December 2021.

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