Snowflake's earnings results sparked a broad tech stock rally after AI accounts jumped from 9,100 to 13,600 in a single quarter, reversing fears that AI would displace SaaS platforms.

Snowflake surged 35% on its best single day ever after reporting that AI accounts on its platform jumped from 9,100 to 13,600 in a single quarter, product revenue grew 34%, and full-year guidance was raised by $180 million.

The market had been gripped by the 'SaaSpocalypse' — fears that autonomous AI agents would replace per-seat software licenses and hollow out SaaS business models. Snowflake's results showed the opposite: enterprises are using AI to generate more workloads that run on its platform, not replace it.

The rally extended across the sector: ServiceNow gained 5%, Palantir rose nearly 6%, Oracle and Microsoft each added roughly 3%, and Workday and Doximity each jumped 4.7%.