Snowflake CFO Says AI Adoption Fuels Growth, Eyes GAAP Profitability in 2027

AI adoption is accelerating Snowflake’s growth: About 9,100 accounts have adopted Snowflake CoCo and more than 5,000 have adopted Snowflake CoWork. CFO Brian Robins said AI products accounted for roughly half of recent outperformance, while the company raised full-year growth guidance to 36% from 31%. AI is also strengthening the core business and migrations: Customers using CoCo or other AI products have generated an 11% uplift in core activity, while AI tools have reduced typical migration timelines from 10–11 months to about six months. Snowflake is targeting GAAP profitability in the fourth quarter of 2027: Management expects to achieve this through operating leverage and internal productivity gains without broadly restricting investment. The company added about 330 employees year to date, well below the roughly 940 additions in the comparable prior-year period. Snowflake NYSE: SNOW CFO Brian Robins said the company’s recent momentum reflects strength in its core consumption business and growing adoption of its artificial intelligence products, while management continues to pursue operating efficiency and a path to GAAP profitability in the fourth quarter of next year. Speaking at a Piper technology conference, Robins said he joined Snowflake in part because of its position in the AI market, its customer data footprint and the product leadership of CEO Sridhar Ramaswamy. He said his priorities during his first year included improving go-to-market execution, supporting revenue growth and increasing operating efficiency. Snowflake’s AI Momentum Is Forcing a Fresh Look at the Stock Robins said the company has reaccelerated growth and generated operating leverage while introducing AI capabilities across its platform. He characterized the company’s latest quarterly results as strong across both its core business and newer AI offerings. AI Product Adoption Contributes to Growth Robins said Snowflake’s consumption-based model is supported by detailed forecasting tools that analyze customer and product-level activity across regions. The company runs several machine-learning models nightly, he said, with executives receiving a detailed forecast each morning. He noted that forecasting newer products is more difficult because of their shorter operating histories. Snowflake applies a “haircut” to early adoption data when setting guidance, he said, rather than assuming recently elevated growth rates will persist unchanged. According to Robins, Snowflake CoCo has become one of the company’s most successful product launches. He said approximately 9,100 accounts had adopted Snowflake CoCo, while more than 5,000 had adopted Snowflake CoWork. Management is focused on expanding usage within those accounts by helping sales teams identify use cases that can bring more users onto the platform, Robins said. He added that the company has seen benefits to its core business from AI adoption, citing a LinkedIn post by Ramaswamy that indicated customers adopting Snowflake CoCo or AI products have generated an 11% uplift in core business activity compared with what they otherwise would have done. Robins said roughly half of the company’s recent outperformance was related to AI products and the other half was tied to the core business. He also said Snowflake raised its full-year growth guidance to 36% year over year from 31%, a 500-basis-point increase in one quarter. Migrations and Legacy Modernization The CFO said AI tools are helping Snowflake reduce migration timelines for customer...