Snowflake raised its fiscal 2027 product revenue guidance to $6.07 billion, with Q2 product revenue up 37% YoY, driving shares up 23%. CEO Sridhar Ramaswamy said AI tools are creating a "flywheel effect." The rally lifted ServiceNow, Salesforce, and Atlassian by 3.5%-6%. At least 34 brokerages raised price targets, with Wells Fargo setting the highest at $525. Jim Cramer called Snowflake "the clearest path" to on-demand AI computing.
Snowflake Surges 23% After Raising AI-Driven Revenue Forecast, Lifts Software Stocks
Snowflake, the cloud data platform, saw its shares jump 23% on Thursday after raising its fiscal 2027 product revenue guidance to $6.07 billion. The company also reported a 37% year-over-year increase in second-quarter product revenue.
CEO Sridhar Ramaswamy said AI tools are driving growth on the company's core platform, creating a "flywheel effect." The rally lifted the broader software sector, with ServiceNow, Salesforce, and Atlassian gaining between 3.5% and 6%.
Morgan Stanley analysts noted that AI is materially driving usage on Snowflake's platform. Following the earnings, at least 34 brokerages raised their price targets on Snowflake, with Wells Fargo setting the highest on Wall Street at $525.
CNBC's Jim Cramer also commented, saying Snowflake offers cautious enterprises the clearest path to on-demand AI computing power.
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