Databricks Expects to Hit $3.7 Billion in Annualized Revenue Next Month

AI software provider Databricks expects annualized revenue to reach $3.7 billion by next month, up 50% from last year, according to a company spokesperson. The growth suggests that Databricks is benefiting as more large companies invest in building AI applications from their business data.

Databricks didn’t specify how much of the $3.7 billion will come from generative AI products versus traditional machine learning and data science offerings. Snowflake executives have told staff they want to reach $100 million in annual recurring revenue from sales of generative AI products by the close of the company’s fiscal year ending in January, as we reported last month.

It’s also unclear when Databricks, valued at $62 billion after a funding round early this year, will have its long-awaited IPO. Until that happens, direct comparisons with Snowflake, its public-traded rival, will be tough to make. Snowflake generated nearly $3.5 billion in product revenue (the primary metric it shares with investors) for the 12 months to January 31, up 30% from the previous year.

Databricks told investors late last year that it expects sales to grow more than 40% in 2025 and 2026, which would mean its sales will be around $5.4 billion by the year that ends in January 2027. That would make Databricks as big as Snowflake that year, according to FactSet estimates.