Key Highlights
- Snowflake shares rocketed more than 23% following Q2 adjusted earnings per share of $0.62, crushing the $0.45 forecast
- Total revenue reached $1.55 billion, climbing 35% from the prior year and exceeding the $1.48 billion projection
- Product revenue advanced 37% year-over-year, representing the third straight quarter of growth reacceleration
- CoCo, the company’s AI coding assistant, expanded beyond 9,100 accounts with more than 2,000 added this quarter
- Annual product revenue forecast elevated to $6.07 billion from the previous $5.84 billion target
Shares of Snowflake (SNOW) skyrocketed more than 23% during Thursday’s premarket session following the cloud data platform’s Q2 earnings report that exceeded expectations on all fronts while management elevated its annual projections.
Prior to Thursday’s surge, the stock had finished Wednesday’s session up 39% since January, significantly outperforming the S&P 500’s approximately 12% advance during the same timeframe. Should Thursday’s premarket gains persist through the regular session, this would represent the fourth most substantial single-day percentage increase since the company’s 2020 initial public offering.
The company delivered adjusted earnings per share of $0.62, substantially exceeding Wall Street’s $0.45 projection. Total revenue printed at $1.55 billion compared to analyst estimates of $1.48 billion, marking a 35% year-over-year expansion.
SNOWFLAKE $SNOW Q2’27 EARNINGS HIGHLIGHTS
Revenue: $1.55B (Est. $1.48B)
Raises FY27 Guide:
— Wall St Engine (@wallstengine) September 2, 2026
Product revenue climbed to $1.49 billion, reflecting 37% annual growth. This milestone represents the third consecutive quarter where product revenue growth has accelerated—a metric that tends to draw the most attention from institutional investors and analysts.
Chief Executive Sridhar Ramaswamy emphasized that the company is “powering the enterprise AI revolution” and highlighted a “flywheel effect” that’s increasingly evident throughout the organization’s operations.
Momentum Building in AI Solutions
The company’s AI coding assistant, CoCo, surpassed 9,100 active accounts during the reporting period, with Snowflake onboarding more than 2,000 fresh accounts within the three-month window. Meanwhile, CoWork’s adoption expanded to 5,800 accounts.
The platform welcomed 692 net new customers during Q2, representing 32% annual growth. Snowflake’s enterprise footprint now encompasses 829 companies from the Forbes Global 2000 list.
BTIG’s Gray Powell characterized the results as a “strong beat and raise,” emphasizing that growth momentum is spreading evenly throughout the customer portfolio without excessive dependence on any particular industry vertical or AI-focused startups.
Outlook Elevated on Multiple Fronts
Looking ahead to Q3 of fiscal 2027, management projected product revenue between $1.588 billion and $1.593 billion, indicating 37% to 38% year-over-year expansion. The guidance midpoint of $1.59 billion surpassed the Street’s $1.57 billion consensus estimate.
The company increased its fiscal 2027 full-year product revenue outlook to $6.07 billion, a notable jump from the $5.84 billion target provided in May. This revised forecast implies 36% annual growth and easily exceeds the previous analyst consensus of $5.84 billion.
Management also upgraded its adjusted operating margin forecast for the complete fiscal year, raising the target to 14.5% from the prior 13.5% projection.
Chief Financial Officer Brian Robins highlighted that the company successfully delivered accelerating revenue growth while simultaneously expanding profitability margins—a dual achievement that rarely occurs simultaneously.
On a GAAP basis, Snowflake reported a net loss of $191.7 million, translating to $0.55 per share, during the second quarter. This represents meaningful improvement compared to the $297.9 million loss, or $0.89 per share, recorded in the corresponding quarter of the previous year.
The second quarter of the fiscal year concluded on July 31. Company leadership held a conference call with analysts at 5 p.m. ET Wednesday to provide additional context on the quarterly performance.
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