Databricks Projects $1 Billion in Revenue From Data Warehouse Business

Databricks reportedly projects that its data warehousing business will almost double in size this year.

The company is also introducing a new database product that it hopes will enjoy a similar growth trajectory, Bloomberg News reported Wednesday (June 11).

A company spokesperson told the news outlet that Databricks expects $1 billion in revenue run rate for Databricks SQL by the close of its fiscal year in January 2026, up from a $600 million run rate in December 2024.

Growth in Databricks’ data warehousing business has been driven by customers recognizing that Databricks’ offering costs less than other options, CEO Ali Ghodsi told Bloomberg.

The report noted that Databricks SQL, used to store and analyze data, is the company’s product that competes most directly with Snowflake.

Snowflake, the report added, focuses on cloud data warehousing, and is projected to record $4.3 billion in product revenue in the fiscal year ending in January 2026.

Databricks was valued at $62 billion earlier this year after completing a Series J funding round, taking in $10 billion in equity financing along with a $5.25 billion credit facility from several of the world’s largest banks.

The company said it would invest its capital in new AI products, acquisitions and in expanding its international go-to-market operation.

Meanwhile, PYMNTS wrote Wednesday about the challenges facing companies such as Databricks and Snowflake.

When these companies rose to prominence, that report said, their success was helped by the growth of digital-first businesses, startups or cloud-native unicorns, which needed scalable, agile infrastructure to fuel growth.

“Cloud data warehouses and platforms were the answer, offering a way to store, manage and analyze data without the burdens of traditional IT infrastructure,” PYMNTS wrote. “However, as these cloud providers set their sights on the next phase of growth by targeting large, multinational enterprises with legacy systems, a different picture is emerging, one centered around capital budgets for mainframe modernization, enterprise resource planning (ERP) upgrade timelines and multiyear IT strategic plans.”

Financial filings and statements from leading cloud providers about their deal plans demonstrate that digital transformation in the enterprise space is a marathon, not a sprint, that report added.

At a conference last month, Snowflake Vice President of Finance Jimmy Sexton said the cloud provider is now at the mercy of corporate renewal cycles and legacy infrastructure.

“Today’s biggest firms don’t rip and replace their back-office architecture on a whim,” PYMNTS wrote. “They wait for on-premises environments and data ecosystems to hit end-of-life or contract renewal. Only then do they consider initiating a phased cloud shift.”