Snowflake, the cloud-data company based in Bozeman, delivered one of its strongest quarters in recent years, sending shares sharply higher as investors responded to accelerating growth and stronger demand for its artificial-intelligence products.
Shares of Snowflake jumped about 17% after the company reported fiscal second-quarter revenue of $1.55 billion, up 35% from a year earlier. Product revenue, the closely watched measure of customer usage, rose 37% to $1.49 billion.
The results strengthened the case that AI is becoming a meaningful growth driver for the company rather than a threat to traditional software businesses. Snowflake said AI products accounted for about half of its recent growth acceleration, while new tools such as its CoCo coding assistant and CoWork enterprise AI product have gained traction with customers.
Snowflake has also been expanding its partnerships with other major technology companies. The company has a five-year, $6 billion collaboration with Amazon Web Services and earlier this year announced a $200 million multi-year partnership with OpenAI.
Chief Executive Sridhar Ramaswamy said AI is creating a compounding effect across the business by driving more data usage and, in turn, more consumption of Snowflake’s platform.
Management raised its outlook following the quarter. Snowflake now expects fiscal 2027 product revenue of about $6.07 billion, up from its previous forecast of $5.84 billion. The company also increased its adjusted operating-margin target to 14.5% from 13.5%.
Snowflake remains unprofitable on a GAAP basis, posting a quarterly net loss of $191.7 million, though adjusted earnings improved to 62 cents a share from 35 cents a year earlier. The company also reported about $4.3 billion in cash, cash equivalents and short-term investments.
The stock has risen sharply in 2026, reflecting investor optimism that stronger AI adoption, higher customer consumption and large cloud partnerships can sustain growth.
That optimism also comes with higher expectations. Snowflake trades at a premium valuation compared with much of the software sector, leaving investors focused on whether the company can continue delivering rapid growth and improving profitability.
For Montana, the quarter also highlights the growing national profile of one of the state’s most prominent technology companies. Snowflake was founded in California but has maintained its principal executive office in Bozeman, placing one of the largest publicly traded cloud-software companies in the country within Montana’s expanding technology sector.