FILE PHOTO: The company logo for Snowflake Inc. is displayed on a banner to celebrate the company's IPO at the New York Stock Exchange (NYSE) in New York, U.S., September 16, 2020. REUTERS/Brendan McDermid/File Photo
(Reuters) - Snowflake forecast fiscal 2026 product revenue above analysts' estimates on Wednesday as the data analytics provider sees rising cloud service growth amid advancements in artificial intelligence, sending its shares up 11% in extended trading.
The company's data cloud has seen strong adoption from firms looking to use AI-powered services, with Snowflake also announcing the integration of OpenAI's models directly in Snowflake Cortex AI.
Snowflake expects annual 2026 product revenue growth of 24% to $4.28 billion, compared with the average analyst estimate of $4.21 billion, according to data compiled by LSEG.
Businesses are pushing their budgets as they migrate towards cloud-based solutions, ramping sales for businesses such as Snowflake.
The company forecast first-quarter product revenue between $955 million and $960 million, above estimates of $949.3 million.
Total revenue for the fourth quarter was $986.8 million, beating estimates of $955.9 million.
(Reporting by Kritika Lamba in Bengaluru; Editing by Alan Barona and Shounak Dasgupta)
