Salesforce Beats Estimates, Snowflake Shares Follow Higher

Snowflake Inc. shares moved higher on Thursday, following Salesforce's advance after the enterprise software giant reported stronger-than-expected second-quarter results and raised its full-year outlook.

Snowflake shares are climbing firmly. What's behind SNOW's rise?

Salesforce Beats Expectations and Raises Full-Year Guidance

Salesforce Inc. posted quarterly revenue of $11.35 billion, surpassing Wall Street's estimate of $11.32 billion, up 11% from the same period last year. Earnings were even more impressive, with adjusted earnings per share of $5.90 versus the consensus estimate of just $3.27.

Looking ahead, Salesforce expects third-quarter revenue to land between $11.42 billion and $11.5 billion, slightly above Wall Street's forecast of $11.41 billion, with adjusted EPS of $3.42 to $3.44, above the market consensus of $3.37.

Management also raised its full-year fiscal targets across the board, lifting the revenue range from a prior $45.9 billion to $46.2 billion to a new $46.1 billion to $46.4 billion, while adjusted EPS guidance jumped from a previous $14.06 to $14.12 range to a new $16.67 to $16.71 range.

Salesforce's strong quarterly performance is spilling over to Snowflake, as both companies fall under the broad category of enterprise software providers that businesses rely on to manage data and operations. Investors typically view news from one as a demand signal for the entire group. Salesforce's earnings beat, guidance raise, and AI-driven growth all point to healthy enterprise technology spending, a backdrop that also benefits Snowflake's own data and AI-related business.

Snowflake Chart Shows Strong, Sustained Uptrend

Beyond its correlation with Salesforce, Snowflake's own technical picture is reinforcing today's strength. The stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, a series of uptrend lines reinforced by a golden cross formed in July, keeping the stock's longer-term trend pointed upward.

Short-term momentum is more mixed, with the MACD line below the signal line and a negative histogram, indicating that recent upside momentum is fading even as the broader trend remains intact. Traders are watching $342 as resistance, essentially near the stock's 52-week high of $341.95, a level that typically requires more than one attempt to break through.

Snowflake Leads Its Sector Today

This technical strength is also reflected in Snowflake's performance relative to its peers. The stock is up 5.12%, while the Technology Select Sector SPDR Fund is up 2.58%, putting Snowflake ahead of its own sector by more than 2.5 percentage points, and the sector itself is today's best-performing group.

The technology sector has risen 9.62% over the past 30 days but remains down 1.82% over the past 90 days, indicating a recent rebound within a longer-term choppy trend. If the sector's short-term strength persists, Snowflake's shares, trading well above their 50-day and 200-day averages, look technically more favorable than many slower-moving peers.

SNOW Shares Are Rising

SNOW price action: As of Thursday's writing, Snowflake shares were up 5.08% at $331.39. The stock is trading near its 52-week high of $341.94.