Snowflake Posts Strong Sales Growth Outlook, Easing AI Fears (1)

Snowflake Inc. issued a strong outlook for annual sales growth that helped ease jitters about the software industry’s growth prospects in the age of artificial intelligence.

Product revenue will be about $5.66 billion in the year ending in January 2027, the company said Wednesday in a statement, surpassing Wall Street’s expectations. The segment represents the majority of Snowflake’s total sales and is closely watched by investors.

“At Snowflake’s scale, this level of growth is not only top tier in the infrastructure software category, but in all of software,” said Koji Ikeda, an analyst at Bank of America. ...