Snowflake and Databricks both grow amid rising AI demand, with Snowflake keeping stronger profits.

Jefferies analysts report that Snowflake and Databricks are both expanding rapidly due to growing enterprise demand for data and AI infrastructure. Databricks is expected to surpass Snowflake in scale with a revenue run rate exceeding $6.9 billion, growing about 65% year-over-year, while Snowflake's revenue run rate is around $5.5 billion with 32% growth. Despite Databricks' scale lead, Snowflake maintains stronger profitability with free cash flow margins near 23%. Both companies are advancing AI capabilities, with Snowflake's new AI products potentially boosting monetization and Databricks enhancing AI adoption through its Genie platform. Snowflake shares have risen about 7% this year, closing near $235.