Snowflake shares climbed about 22% after the data-cloud company reported quarterly results and issued a forecast that topped Wall Street projections, driven by rising demand for its artificial-intelligence tools.
The company said businesses building AI applications on top of their own data are increasingly turning to its platform, fueling faster-than-expected revenue growth. Executives pointed to strong momentum across its product suite as the central reason for raising guidance.
Part of the growth stems from adoption of an AI agent designed to write code, a feature that has drawn interest from customers seeking to automate software development. That coding tool has become one of the clearer signs that enterprise AI spending is translating into measurable revenue.
The results placed Snowflake among a group of software companies reporting AI-linked gains this earnings season. Similar moves followed a strong AI-driven quarter at GitLab, where investors rewarded evidence that AI features were converting into paying business.
Snowflake competes to store and analyze corporate data at scale, positioning itself as the layer where companies house the information that AI models draw on. As firms race to deploy generative AI, demand for that underlying data infrastructure has grown.
The stock reaction reflected investor confidence that the company can sustain its expansion. Software valuations have swung sharply this year as markets try to separate durable AI revenue from early enthusiasm.
Snowflake is scheduled to detail its outlook further in coming quarters, when investors will look for confirmation that the AI-fueled demand seen this period continues to build.