Shares of cloud analytics firm Snowflake SNOW surged about 13% in the extended trading on Aug. 27, 2025, after the enterprise software maker posted second-quarter fiscal 2026 earnings and revenues that topped Wall Street forecasts. The company also issued product revenue guidance for the October quarter that topped expectations.
Strong Quarterly Results
The earnings report, released after market close, showed adjusted earnings of 35 cents per share, nearly double the year-ago figure. Earnings also breezed past the Zacks Consensus Estimate of 26 cents per share.
Revenues climbed 32% to $1.1 billion versus the consensus estimate of $1.09 billion. The company’s remaining performance obligations — a key measure of contracted revenues — came in at $6.9 billion, reflecting a 33% increase year over year.
Snowflake raised its forecast for fiscal 2026 product revenues on Aug. 27, 2025, due to strong demand for its data analytics services as enterprises continued prioritizing investments in artificial intelligence (AI).
AI Adoption Driving Growth
Snowflake is benefiting from the rapid adoption of AI tools and increased enterprise spending on modernizing data systems. As more companies are adopting GenAI strategies and building AI-powered apps, analysts view Snowflake as a go-to option for businesses that want to streamline their analytics and AI platforms.
Updated Revenue Guidance
For the October quarter, Snowflake forecast product revenues in a range of $1.125 billion to $1.130 billion versus the Zacks Consensus Estimate of $1.17 billion of revenues.
Snowflake now projects annual product revenues of $4.40 billion, up from its earlier estimate of $4.33 billion. The Zacks Consensus Estimate is pegged at $4.52 billion.
ETFs in Focus
Against this backdrop, below we highlight a few exchange-traded funds (ETFs) that have decent exposure to Snowflake and may benefit in the near term if Snowflake rises further on the AI push.
Snowflake-heavy ETFs include Twin Oak Endure ETF SPYA, TrueShares Technology, AI & Deep Learning ETF LRNZ and Global X Cloud Computing ETF CLOU.
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Snowflake Inc. (SNOW): Free Stock Analysis Report Global X Cloud Computing ETF (CLOU): ETF Research Reports TrueShares Technology, AI and Deep Learning ETF (LRNZ): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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