Snowflake has completed two major deals in the past quarter, acquiring Datometry to accelerate database compatibility and Observe to enhance data observability. The Datometry acquisition brings support for over 150 on-premises and cloud data sources, enabling customers to migrate legacy analytics workloads without code rewrites. Observe’s platform will be fully integrated into Snowflake’s marketplace, offering automated monitoring of billions of daily queries and real-time anomaly detection. Together, these deals are expected to contribute over $120 million in incremental revenue in their first 12 months under Snowflake’s banner and to expand the total addressable market by an estimated 15%.

Following the acquisitions, two Wall Street firms raised Snowflake’s rating to Buy, citing a moderation in valuation multiples and strengthening growth drivers. Reported remaining performance obligations jumped 37% year-over-year to $7.88 billion, reflecting multi-year contract extensions with large enterprise customers. Net revenue retention remains elevated at 125%, driven by expansion within the top 100 accounts, which now contribute over 40% of ARR. Analysts project that AI-driven workloads will account for 20% of total consumption by year-end, up from 12% six months ago, supporting a consensus revenue growth forecast of 45% for the current fiscal year.