Aug 21 (Reuters) - Data cloud analytics firm Snowflake

on Wednesday raised its forecast for full-year product

revenue, as it attracts more clients to its cloud platform owing

to advancements in artificial intelligence.

However, shares of the firm fell more than 7% in extended

trading. D.A. Davidson analyst Gil Luria attributed the drop to

the company not pairing the rise in revenue projections with a

rise in margin forecast.

The company now expects product revenue of $3.36 billion for

fiscal 2025, up from its prior forecast of $3.30 billion.

The company also authorized an additional $2.5 billion under

its share buyback program through March 2027.

Snowflake was the victim of a data breach earlier this

year which saw large amounts of customer data stolen from firms

like TicketMaster-parent Live Nation and telecom titan AT&T ( T )

.

Snowflake has seen a rise in demand for its Data Cloud

platform as AI integration has helped enterprises streamline

their data quickly and efficiently.

The company reported product revenue of $829.3 million for

the second quarter ended July 31, beating estimates of $808.4

million, according to LSEG data.

Snowflake has been actively pursuing AI by creating its own

large language model called Snowflake Arctic, and partnering

with Facebook-parent Meta to use its Llama models and

boost the appeal of the company's cloud platform.