Snowflake (SNOW) Surge Lifts Software Sector; Rapid7 (RPD), Unity (U), C3.ai (AI) Gain

Shares of enterprise software companies rallied on May 29, 2026, after Snowflake's record earnings cast doubt on fears that AI would make subscription software obsolete. Rapid7, Unity, and C3.ai were among the gainers. Snowflake surged 35% following its report that AI accounts on its platform jumped from 9,100 to 13,600 in the quarter, product revenue grew 34%, and it raised full-year guidance by $180 million. CFO Brian Robins said the AI product Cortex Code was the largest driver of the guidance increase, indicating AI is accelerating consumption rather than replacing platforms. The broad rally lifted the iShares Expanded Tech-Software ETF (IGV), with ServiceNow up 5%, Palantir nearly 6%, and Oracle and Microsoft each adding about 3%. The gains marked a reversal of the “SaaSpocalypse” selloff that had erased roughly $2 trillion from software market values since late 2025 on fears AI agents would displace per-seat licenses. Rapid7, which had fallen 47.9% year-to-date, moved higher but remains 70.9% below its July 2025 high.