Snowflake Inc (NYSE:SNOW) stock rose 4.04% (As on February 26, 11:26:03 AM UTC-4, Source: Google Finance) after the company provided a bullish forecast for its fiscal 2027 product revenue, saying it’s benefiting from booming enterprise demand for artificial intelligence tools, which drives more customers to its data analytics platform. More recently, the company has expanded into agentic AI. In November, it announced the launch of its new Snowflake Intelligence platform, which introduces conversational capabilities to its data warehouse.

Moreover, during the quarter, Snowflake announced a $200 million, multiyear partnership with OpenAI Group PBC to bring enterprise-grade generative artificial intelligence models directly into its data platform. The agreement deepens a relationship that until now had largely flowed through Microsoft Corp.’s Azure ecosystem. Under the agreement, OpenAI’s models will be natively available inside Snowflake Cortex AI managed service and Snowflake Intelligence, giving Snowflake’s 12,600 customers the ability to build and deploy AI applications and agents directly on governed enterprise data across all three major public clouds. Last month, it bought a startup called Observe AI Inc. in a deal that was reportedly valued at around $1 billion.

NOW in the fourth quarter of FY25 has reported the adjusted earnings per share of 32 cents, beating the analysts’ estimates for the adjusted earnings per share of 27 cents. The company had reported the adjusted revenue growth of 30 percent to $1.28 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $1.26 billion. Snowflake said its product revenue in the quarter came to $1.23 billion, also up 30% and ahead of the $1.2 billion analyst target.

The company said it’s looking for first-quarter product revenue of between $1.262 billion and $1.267 billion, which would represent growth of about 27% – a slowdown from the 30% growth in the quarter just done. That said, its forecast still came in ahead of Wall Street’s projection, which calls for $1.255 billion in annual product revenue. For the full year, Snowflake also calls for 27% product revenue growth, though it’s worth pointing out that the company historically tends to beat its annual forecast by about 3% on average. That implies that it could actually match the 29% product revenue growth rate it saw in fiscal 2026. The company also said it’s projecting an operating margin of 9% in the first quarter, down from 11% in the previous quarter. Wall Street is looking for an operating margin of 9.5%. It should get better though. For the full year, Snowflake sees operating margin at around 12.5%, ahead of the Street’s consensus of 11.1%.