Yahoo Finance analysis: Snowflake's strong Q2 results and Salesforce's AI partnership signal enterprise AI is driving software sector growth
Snowflake (SNOW) reported a strong fiscal Q2 2027, boosting its product revenue target to $6.07 billion from $5.84 billion, with product revenue up 37% to $1.49 billion. CEO Sridhar Ramaswamy noted AI products accounted for about half of this growth acceleration, suggesting AI demand is boosting its core data platform. This performance, along with Salesforce's (CRM) Q2 fiscal 2027 results (revenue up 11% to $11.35 billion) and its Claudeforce partnership with Anthropic, indicates that enterprise AI adoption is translating into real, incremental spending and increasing the value of established software platforms. Following Snowflake's earnings on September 2, enterprise software stocks like ServiceNow, Atlassian, Adobe, Intuit, and Salesforce all rose 3.5% to 6%, and the iShares Expanded Tech-Software ETF gained 3%.
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