Cloud data analytics company Snowflake announced Wednesday that its revenue projections for fiscal 2027 will exceed Wall Street expectations, as businesses increasingly turn to artificial intelligence applications and cloud-based services.
The Montana-based company, which went public in 2012, provides a platform that allows businesses to store and analyze their data in one centralized location for generating insights and building AI applications.
Business customers are ramping up their investments in moving operations to cloud-based systems while simultaneously developing artificial intelligence capabilities, creating higher demand for services like those Snowflake provides.
Chief Executive Officer Sridhar Ramaswamy revealed to Reuters that the company recently closed its biggest contract to date. “We also signed the largest deal in our history of over $400 million,” Ramaswamy stated, though he did not identify the customer.
The company’s Snowflake Intelligence platform, which became available to customers last November, has already been implemented by more than 2,500 clients, according to Ramaswamy.
For the fiscal year concluding January 31, 2027, Snowflake projects product revenue will reach $5.66 billion, surpassing the $5.50 billion average forecast from financial analysts tracked by LSEG.
The company’s first-quarter product revenue outlook of $1.26 billion to $1.27 billion also topped analyst predictions of $1.23 billion.
Snowflake operates on a consumption-based pricing model that depends on how much customers use its storage and computing services. The company faces strong competition from rivals like Databricks, which recently secured $5 billion in funding this month.
Despite the positive financial outlook, Snowflake’s stock price dropped approximately 3% in after-hours trading.
The company has established separate multi-year partnerships worth $200 million each with AI companies OpenAI and Anthropic to incorporate their advanced technology into Snowflake’s platform, aimed at helping more businesses adopt artificial intelligence.
In a recent acquisition move, Snowflake purchased app-monitoring company Observe for an undisclosed sum to improve its capabilities in identifying and resolving software and data performance problems.
With a customer base exceeding 13,000 clients, including notable companies like Figma and BlackRock, Snowflake reported fourth-quarter product revenue increased roughly 30% to $1.23 billion, beating analyst estimates of $1.18 billion.
The company’s adjusted earnings per share of 32 cents also surpassed expectations of 27 cents per share.
