Snowflake Beats Q2 Estimates and Raises FY27 Outlook on AI Momentum

Snowflake beat on every headline line of its fiscal second quarter. Revenue was $1.55 billion, up 35% year over year against a $1.48 billion consensus, product revenue was $1.49 billion, up 37%, and non-GAAP EPS of $0.62 cleared the $0.45 analysts expected . The GAAP net loss narrowed to $191.7 million, or $0.55 per share, from $0.89 a year earlier.

The forward looking numbers are what moved the stock. Management raised FY27 product revenue guidance to $6.07 billion, implying 36% growth, from $5.84 billion and 31%, and lifted the non-GAAP operating margin target to 14.5% from 13.5%. Remaining performance obligations rose 30% to $9.00 billion and net revenue retention held at 126%, which argues the raise is backed by contracted demand rather than pipeline optimism.

AI adoption is showing up in account counts rather than in a separately disclosed revenue line. The CoCo coding assistant reached more than 9,100 accounts, an increase of over 2,000 during the quarter, and the company now counts 828 customers with trailing twelve month product revenue above $1 million . That is the practical test of whether AI features pull consumption through the core platform, and this quarter it points the right way.

SNOW rose about 22% in after hours trading on the print, after slipping during Wednesday's regular session ahead of it. The bar is now materially higher. At 36% guided product revenue growth the stock is priced for continued acceleration, so the numbers to watch next quarter are whether net revenue retention holds near 126% and whether the operating margin actually lands at the raised 14.5% rather than being spent back into AI investment.

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