Snowflake Stock Slides as AI Push Meets Fresh Software Selloff

SAN FRANCISCO, April 24, 2026, 10:05 PDT

• Snowflake shares slipped roughly 5.5% to $138.42, piling more pressure onto high-growth software stocks.
• Snowflake is rolling out broader Snowflake Intelligence and Cortex Code offerings, targeting enterprises experimenting with “agentic AI”—that is, software built to execute actions rather than just respond to queries. Snowflake
• Law firms are flagging yet another cloud over the stock: the lead-plaintiff deadline for a securities class action lands April 27.

Snowflake Inc. shares dropped Friday. The cloud-data firm’s new artificial-intelligence initiative landed amid a tougher stretch for software stocks, and some investors also faced a fresh legal deadline.

Shares last changed hands at $138.42, off roughly 5.5%. Earlier, the price had dropped as low as $134.31 during the session. That slide trimmed Snowflake’s market cap to around $47 billion.

It’s a tough moment for Snowflake. The company is out to persuade both customers and investors that AI agents will boost demand for its data platform—rather than threaten the foundational software model. This issue is front and center again after IBM and ServiceNow delivered results that stoked fresh worries about AI putting the squeeze on conventional software budgets.

U.S. software shares tumbled Thursday. IBM’s software unit posted slowing revenue, while ServiceNow pointed to deal delays. “Lot bigger range of outcomes” for tech and AI names now, said UBS Global Wealth Management’s Kiran Ganesh to Reuters. Reuters

Earlier this week, Snowflake announced it’s rolling out expanded features for Snowflake Intelligence—the company’s work agent for business users—as well as Cortex Code, its AI coding agent geared toward technical teams. The latest updates introduce integrations with Gmail, Google Calendar, Jira, Salesforce, and Slack. There’s also new support for AWS Glue, Databricks, and Postgres.

Baris Gultekin, vice president of AI at Snowflake, said the companies that come out on top in enterprise AI will have to get both “the right data and guardrails” in place. Snowflake, he added, is pushing to offer customers a unified spot where data, systems, and workflows all plug in—letting AI “get work done.” Snowflake

Snowflake is gearing up for its Summit 26 in San Francisco, running June 1-4. Anthropic’s co-founder and President Daniela Amodei will join Snowflake CEO Sridhar Ramaswamy on stage. The company highlighted that the agenda features over 500 sessions and counts more than 200 partners attending in person.

Denise Persson, Snowflake’s chief marketing officer, describes this as “one of the most transformative” times in tech, with customers now pushing AI projects from test runs into their regular operations. That’s the company’s sales message. But investors want to know: when do these projects start generating consistent revenue? Snowflake

Snowflake goes head-to-head with Databricks in the battle for enterprise data and AI. The company has locked in separate multi-year agreements worth $200 million each with OpenAI and Anthropic, aiming to bring more advanced models to its platform. Back in February, Reuters reported that Snowflake also shelled out $600 million—cash and stock—for Observe, the app-monitoring firm.

The latest quarter delivered decent momentum, though skepticism lingers. Snowflake logged $1.28 billion in revenue for the fourth quarter—a 30% gain. Product revenue reached $1.23 billion. Looking ahead, the company put out a fiscal 2027 product revenue target of $5.66 billion, topping what analysts had been expecting then.

Back in February, Ramaswamy told Reuters Snowflake had landed its biggest deal ever—over $400 million. He didn’t disclose the client. At the time, D.A. Davidson’s Gil Luria pointed out that investor sentiment toward software firms was shaky, though he noted that faster revenue growth could put Snowflake in a strong spot as AI demand increases.

Not every software name stands to benefit equally from AI. If buyers start favoring AI-native products, put off signing big deals, or push for cheaper prices, Snowflake’s new agents might not translate into higher consumption revenue right away. That usage-based model only pays off as customers actually ramp up activity on the platform.

Legal trouble is cropping up again. The Gross Law Firm on Friday pointed out that Snowflake shareholders who picked up shares from June 27, 2023 through February 28, 2024 have until April 27 to apply for lead-plaintiff status in a securities class action. The suit claims Snowflake didn’t disclose factors that were expected to weigh on usage and revenue—though so far, these are just allegations.

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