GWRE, VRNS Surge as Snowflake’s AI-Fueled Beat Eases SaaS Fears

Guidewire Software (GWRE) and Varonis Systems (VRNS) shares jumped on May 29, 2026, after Snowflake reported blockbuster earnings that challenged the ongoing “SaaSpocalypse” selloff narrative. The results provided the clearest evidence to date that fears of AI rendering subscription software obsolete had been overstated. Snowflake surged 35%—its best single day ever—after revealing AI-powered accounts on its platform grew from 9,100 to 13,600 in one quarter. Product revenue rose 34%, and full-year guidance was raised by $180 million. The read-through lifted a broad swath of software stocks: ServiceNow added 5%, Palantir 6%, and the iShares Expanded Tech-Software Sector ETF (IGV) rallied. The SaaS sector had shed roughly $2 trillion since late 2025 as investors feared autonomous AI agents would displace per-seat licenses. Snowflake’s results inverted that logic, showing AI actually drove more consumption of its platform. Guidewire shares, which have averaged 22 moves greater than 5% over the past year, remain down 24% year-to-date at $142.53, still 45.6% below their 52-week high.