(Reuters) -Snowflake raised its forecast for fiscal 2026 product revenue on Wednesday, banking on strong demand for its data analytics services, as enterprises prioritize artificial intelligence spending, sending its shares up 13% in extended trading.

Snowflake is benefiting from the acceleration in AI software adoption and higher spending from enterprises looking to modernize data infrastructure.

With more organizations beginning to explore their GenAI strategies and build GenAI-powered apps, analysts expect Snowflake to be a natural choice for customers looking to simplify AI stacks for analytics.

The company expects annual product revenue of $4.40 billion, compared with its prior forecast of $4.33 billion.