- Snowflake reported fiscal 2027 second-quarter revenue of $1.55 billion, up 35% year-over-year and above the $1.48 billion analysts had expected.
- Adjusted earnings per share came in at $0.62, topping estimates of $0.45.
- Product revenue rose 37% year-over-year to $1.49 billion, while non-GAAP operating income reached $237 million, well ahead of the $187 million estimate.
- Management highlighted AI products CoCo and CoWork as driving rapid adoption and user growth.
- Snowflake raised its full-year product revenue guidance to $6.07 billion from $5.84 billion.
- Shares jumped 22-23% in after-hours trading following the results and guidance.
- The company recorded a net loss of $191.7 million, or 55 cents per share, smaller than the net loss of $297.9 million, or 89 cents per share, one year ago.
- Management noted that these new AI tools are seeing the fastest adoption of any new products in the company's history.
- As of Wednesday's close, Snowflake shares were up 39%, while the S&P 500 index had gained about 12% in the same period.
Snowflake's shares jumped 22% in after-hours trading on Wednesday after the company reported a fiscal Q2 revenue of $1.55 billion, exceeding analyst expectations of $1.48 billion. This represents a 35% year-over-year increase and is part of a broader trend, as shares have climbed 88% since March.1
The company also reported adjusted earnings per share of $0.62, surpassing estimates of $0.45. Product revenue growth accelerated to 34% year-over-year, up from 30% the previous quarter. Management described this as the company’s “strongest sequential dollar growth in company history.”2
Snowflake raised its full-year product revenue guidance to $6.07 billion, up from a prior forecast of $5.84 billion. The company’s finance chief noted that while AI products have a lower gross margin than its core platform, they are driving the “fastest adoption of any new products in our history.” The CoCo AI coding agent has gained over 9,100 accounts, marking a significant increase of 2,000 accounts in the last quarter.458
Other metrics included a net revenue retention rate of 126% and remaining performance obligations of $9.0 billion, a 30% year-over-year increase. The company also reported a net loss of $191.7 million, smaller than the previous year’s loss of $297.9 million.7
As of Wednesday's close, Snowflake shares were up 39% year-to-date, significantly outperforming the S&P 500's 12% gain in the same period.
“Product revenue growth accelerated to 34% year-over-year, up from 30% last quarter, with management calling it the 'strongest sequential dollar growth in company history.' The company raised its full-year growth outlook from 27% to 31%, signaling sustained momentum from AI products.”
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