Snowflake reported stronger-than-expected results driven by accelerating AI product adoption, sending its stock sharply higher and pulling up software peers alongside it. The company raised its fiscal year 2027 growth outlook to 31% and set a product revenue target of $5.84 billion for that year. The rally helped calm investor fears that AI was cannibalizing demand for traditional software tools rather than expanding it.
This matters beyond just Snowflake — the results reframe AI as a tailwind for enterprise software, not a threat. Investors holding broad software ETFs or cloud-adjacent names had been pricing in disruption risk; this print pushes back against that narrative. Analysts are already moving price targets higher, with Monness lifting its target to $320, which sets a new near-term valuation anchor for the stock.
Snowflake's next earnings report (approximately Q1 FY2026, expected May/June 2025). Watch for follow-on software earnings from Salesforce, Databricks (private but influential), and MongoDB in coming weeks. Also track any AI spending commentary from hyperscalers — AWS, Azure, and Google Cloud — at their next investor events.
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