Snowflake has raised its fiscal 2027 product-revenue forecast after reporting stronger growth and wider use of its artificial-intelligence products. The results suggest that enterprise AI spending is beginning to translate into broader demand for the company’s core cloud data platform.
Forecast moves higher
The company lifted its full-year product-revenue outlook to about $6.07 billion from $5.84 billion. Reuters reported that second-quarter product revenue grew 37% from a year earlier and that Snowflake shares rose more than 20% in premarket trading after the update.
Snowflake’s investor-relations site confirms that the company reported fiscal 2027 second-quarter results on September 2. The company’s platform allows organisations to store, combine and analyse data across multiple cloud services.
AI use expands across accounts
Management said AI offerings accounted for nearly half of the acceleration in growth. The Cortex Code coding assistant was being used in more than 9,100 accounts, while the CoWork enterprise chatbot had reached about 5,800 accounts, according to Reuters.
The figures matter because investors have questioned whether heavy corporate AI investment will produce recurring software revenue. Snowflake’s update indicates that customers are using new AI interfaces alongside existing data workloads rather than treating AI as a separate experiment.
Expectations remain demanding
The rally also reflects high expectations. Reuters said Snowflake traded at roughly 15 times forward revenue, a valuation that leaves little room for execution problems. Competition from large cloud providers and specialist data companies remains intense.
Future quarters will show whether adoption continues after early pilots and whether new products generate durable consumption. Investors will also watch operating margins and free cash flow, not only headline revenue.
