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Evercore ISI raised its price target for the stock to $360 from $280. This is a large jump that puts their valuation significantly higher than the average analyst target of $292.

This kind of move from a major firm suggests growing confidence that the company is winning more of the budget large businesses set aside for data and AI. For a company like this, the stock often moves based on whether analysts believe it can keep growing its sales by more than 25 percent each year as it gets bigger.

Source: Evercore ISI

Key highlights

• Product revenue accelerating: Product revenue grew 34% to $1.33 billion, which represents the largest quarterly increase in the company's history as customers adopt new artificial intelligence tools. This core business performance is the primary engine behind the company's growth, making up 96% of total sales.
• Large customer base expanding: The number of customers spending over $1 million annually rose 29% to 779 total accounts, showing that the largest users are increasing their commitment to the platform. Within just the last three months, 46 customers reached this spending milestone compared to 26 who did so during the same period last year.
• Remaining work growing fast: The total value of signed contracts for future work, which the company calls remaining performance obligations, grew 38% to $9.21 billion. This growth rate is faster than current revenue growth, which suggests that the company has a healthy pipeline of future business coming from its current deals.
• Customer retention stays firm: Net revenue retention, a measure of how much existing customers spend compared to a year ago, remained steady at 126%. This means existing clients are spending 26% more than they were last year, proving that once a company joins the platform, it tends to find more ways to use it over time.
• Full year outlook raised: Management increased its full year product revenue forecast to $5.84 billion, up from a previous target of $5.66 billion, because of strong demand for its data and AI services. The company also expects its operating margin, the profit left after running the business, to reach 13.5% for the year, which is higher than the earlier 12.5% goal.

Our take: A very strong quarter that shows the company is successfully capturing the rush toward artificial intelligence. The record jump in new product revenue and the raised full year forecast prove that AI is acting as a real catalyst for growth, rather than just hype, which significantly strengthens the long-term case for the business.