Snowflake says AI is no longer just potential—it's driving business growth right now

Snowflake Says AI Is No Longer Just Tailwind -- It's Driving Business - Snowflake (NYSE:SNOW)

The company's shares surged more than 35% premarket after management directly tied accelerating growth to adoption of its AI products, particularly Cortex Code, or "Cocoa," its AI-powered coding and workflow platform. More importantly, Snowflake no longer appears to be framing AI as merely a future opportunity. It says AI is actively driving the business right now. "AI is accelerating consumption in our core platform," CEO Sridhar Ramaswamy said during the company's earnings call. That statement matters because investors have spent the last year debating whether AI would actually increase spending on enterprise software platforms -- or simply commoditize them. Snowflake is arguing the opposite is happening. Snowflake Says AI Is Creating A Flywheel Management repeatedly emphasized that AI products are pushing customers to migrate more workloads onto Snowflake faster in order to access enterprise data, governance and workflows needed to deploy AI systems securely. The company said Cortex Code and Snowflake Intelligence are seeing the "fastest adoption of any new products in our history." CFO Brian Robbins made perhaps the most important comment of the entire call. "Cocoa had the largest driver to the increase in our forecast," he said. That's a significant shift. For much of the past two years, AI discussions across software earnings calls have centered around pilots, experimentation and long-term possibilities. Snowflake is now explicitly linking AI products to raised guidance and accelerating growth. Product revenue growth accelerated to 34% year over year, while Snowflake raised its full-year product revenue outlook. Snowflake Wants To Become The 'Agent Control Plane' The company also revealed a much broader ambition than simply being a cloud data warehouse. Management repeatedly described Snowflake as an "agent control plane" -- essentially positioning the platform as the orchestration layer where enterprise AI agents interact with data, workflows and applications. "What customers increasingly want is one place to get work done," Ramaswamy said. That positioning could become increasingly important as enterprises move beyond chatbots toward AI agents capable of taking actions across systems and workflows. And judging by the market's reaction, investors appear increasingly willing to reward software companies that can prove AI is driving real revenue acceleration -- not just generating headlines. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

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Snowflake Inc. is an artificial intelligence (AI) data cloud company. The Company provides a platform which powers the AI data cloud, enabling customers to consolidate data into a single source of truth to drive insights, apply AI to solve business problems, build data applications, and share data and data products. Its cloud-native architecture includes three independently scalable but logically integrated layers across storage, compute, and cloud services. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. The cloud services layer enables users to securely use AI within applications, tools, and processes. Its platform supports a wide range of product categories for customers’ business objectives, including analytics, data engineering, AI, applications and collaboration.