Snowflake's AI-Driven Beat Ignites SaaS Rally, Lifts Domo, GitLab, Tenable

Domo, GitLab, and Tenable shares rose on May 29, 2026, as Snowflake’s record earnings deflated the “SaaSpocalypse” narrative that had erased $2 trillion from software values since late 2025. Snowflake surged 35%—its best day ever—after reporting product revenue grew 34%, AI accounts on its platform leapt from 9,100 to 13,600 in a single quarter, and it raised full-year guidance by $180 million. The performance inverted fears that AI agents would destroy per-seat licensing. Instead, AI workloads boosted consumption of data platforms. GitLab, which has had 37 moves greater than 5% over the past year, recovered ground alongside the broader sector. The stock remains down 21% year-to-date at $28.57, 44% below its November 2025 high. A cooling in Treasury yields and a shift toward SaaS names with defensible AI moats further lifted the iShares Expanded Tech-Software Sector ETF (IGV), as investors sifted for winners after an indiscriminate sell-off.