Prediction: Snowflake's Product Revenue Passes $8 Billion in Fiscal 2028
After a second guidance raise this year, the path to that milestone leans on one retention number holding up.
Snowflake expects product revenue to reach $8 billion in fiscal 2028, up from $6.07 billion in fiscal 2027, according to its latest guidance. This growth is fueled by a steady increase in product revenue and the success of its AI offerings. The company's net revenue retention rate has remained strong at 126% for two consecutive quarters, indicating existing customers are spending more on the platform.
While AI revenue isn't broken out in dollars, Snowflake's adoption numbers, including CoCo AI coding agent usage, suggest strong growth potential. The company's consumption model, where customers pay for capacity upfront, means revenue follows actual usage. If Snowflake's retention rate stays at 126%, the company could still surpass the $8 billion product revenue milestone in fiscal 2028, even if growth slows down.
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