The forecast is based on Snowflake's strong Q2 FY2027 earnings report, which saw product revenue accelerate for the third consecutive quarter, with significant contributions from AI products. Management has raised its FY2027 product revenue guidance to approximately $6.07 billion, representing 36% year-over-year growth, and has also increased its full-year non-GAAP operating margin outlook. Despite a slowdown in Remaining Performance Obligation (RPO) growth, the net revenue retention rate remains at 126%.