Well-funded software maker Databricks, a rival of Snowflake, released new financial data on Wednesday, saying it expects to generate $3.7 billion in annualized revenue by July, a growth rate of 50%. Snowflake stock has been pressured by views that Databricks is gaining market share as companies develop artificial intelligence applications.
In addition, Databricks announced new products at a customer conference in San Francisco this week. The company also announced expanded AI partnerships with Alphabet's Google and Microsoft.
Snowflake and Databricks sell data analytics and data-management software that runs on cloud-computing platforms.
On the stock market today, Snowflake stock gained more than 1% to 211.08. Snowflake stock has gained 32% in 2025 amid the growing rivalry with Databricks.
Room For Both Databricks, Snowflake To Grow
RBC Capital analyst Matthew Hedberg in a report noted that both Databricks and Snowflake have a big opportunity as customers organize and clean up data for artificial intelligence applications. Databricks also disclosed $300 million in annual recurring revenue from its AI products.
"We believe momentum continues to build across cloud/data modernization as organizations look to get their data ready to leverage AI while some organizations are moving GenAI AI workloads into production," he said.
In the April quarter, Snowflake revenue climbed 26% to $1 billion, in line with Wall Street targets.
UBS analyst Karl Keirstead attended the Databricks conference and the keynote by Chief Executive Ali Ghodsi.
"While Databricks and Snowflake are direct rivals, we did not come away with any new concerns about Snowflake and conclude that the overall tone lent support to the notion that investments in the 'data layer' remain robust and could serve as a tailwind for both companies," he said in a report.
"In our view the Databricks CEO struck a more neutral tone vis-a-vis Snowflake than he has in the past," Keirstead added.
In December, Databricks raised $10 billion in a funding round that valued it at $62 billion. It also recently added $5.25 billion in debt financing. Started in 2013, Databricks has not stated any plans for an initial public offering.
Snowflake Stock Technical Rating
Many companies are in trials with autonomous, goal-driven AI agents. Snowflake and Databricks are focused on helping companies use proprietary data to deploy their own AI agents.
Both Databricks and Snowflake have been making acquisitions. Databricks recently acquired database startup Neon in a $1 billion deal. Snowflake agreed to buy startup Crunchy Data. Some reports pegged Snowflake's Crunchy Data deal at $250 million.
Also, Snowflake stock owns a Composite Rating of 96 out of a best-possible 99, according to IBD Stock Checkup.
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