By Sabela Ojea
Shares of Snowflake Inc. climbed after the company forecast higher-than-expected product revenue growth for the current fiscal year as it boosts its artificial-intelligence offering.
The stock was up 9.8%, to $182.49, midday Thursday, on pace for the largest percent increase since Nov. 21. Shares have climbed 18% year to date.
The data-cloud company on Wednesday guided for $4.28 billion in product revenue for the year ending January 2026, representing growth of 24%. Its outlook came after its fourth-quarter revenue came in ahead of Wall Street estimates.
Snowflake expects new product features to contribute to the step-up in year-over-year growth rates in the second half of the year, departing Finance Chief Michael Scarpelli said on a call with analysts.
At the same time, the company is following a "maniacal focus" on driving efficiencies throughout the business, Chief Executive Sridhar Ramaswamy said on the call.
"As we continue to bring new innovations to market, we are focused on scaling efficiently," Ramaswamy said.
Wedbush analysts called Snowflake's guidance "relatively conservative."
Still, Wedbush highlighted Snowflake's new easy-to-use GenAI solutions through its platform Cortex, which the analysts said put the company in a good position to continue building its AI pipeline over the coming quarters.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
February 27, 2025 12:28 ET (17:28 GMT)
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