Snowflake raises fiscal 2027 product revenue outlook to $6.07 billion as AI products gain adoption

Snowflake raises product revenue outlook

Snowflake raised its fiscal 2027 product revenue guidance to $6.07 billion, implying 36% year-over-year growth. The outlook compares with previous guidance of $5.84 billion, which implied 31% growth. The company also forecast fiscal third-quarter product revenue of $1.588 billion to $1.593 billion, representing expected growth of 37% to 38%.

The raised outlook is a company forecast rather than a reported financial result. The reviewed reporting attributed the improved outlook to strong AI demand.

AI products broaden Snowflake's platform portfolio

Snowflake has expanded its AI portfolio with products including CoCo, CoWork, Cortex Sense, Cortex AI Gateway and Cortex Training. The company launched more than 330 generally available product capabilities during the first half, according to the reporting.

CoCo and CoWork received enhancements for automating complex workflows using governed business data. Always-on CoCo and CoWork Bots can execute tasks autonomously while requiring human intervention for critical decisions or approvals. The updates also support integrations with Slack, Excel, Google Sheets and mobile devices.

Reported usage and adoption figures

CoWork was used by more than 5,800 accounts, while CoCo served more than 9,100 accounts. Snowflake's net revenue retention rate was 126% in the second quarter of fiscal 2027. These figures were cited as indicators of AI adoption and increasing platform usage, but the reviewed sources did not provide a detailed customer or revenue breakdown for the products.

Enterprises including Glean and Kargo were reported to be using Cortex AI Gateway, while dentsu and Merkle were adopting Business Ontology within Snowflake Horizon Catalog. Other capabilities included Cortex Sandboxes, Agent Abuse Detection and Dynamic Model Routing.

Shares have outpaced technology benchmarks

Snowflake shares had gained 32.5% year to date as of the November 6 report, compared with a 9% gain for the Zacks Computer and Technology sector and a 3.5% decline for the Zacks Internet Software industry. Over the same reported period, Amazon shares gained 15.2%, while Oracle and Broadcom shares declined 36.5% and 6%, respectively.

The reporting described Snowflake's performance as outperforming AI-related peers and linked the result to AI adoption and platform usage. The sources did not independently establish that those operating factors caused the share-price performance.

Next financial measurement point

The next stated measurement point in the reviewed coverage is fiscal third-quarter product revenue, for which Snowflake expects $1.588 billion to $1.593 billion. The figures are guidance, not results, and actual performance remains subject to the company's reporting.