Snowflake leaps 23% on earnings beat and raised guidance

Snowflake Inc (NYSE:SNOW) has reported a strong second quarter of earnings, surpassing analyst expectations with adjusted earnings per share of $0.62, up from the consensus estimate of $0.45. The company's revenue reached $1.55 billion, marking a 35% year-over-year growth and representing a 37% increase in product revenue. CEO Sridhar Ramaswamy highlighted the accelerating growth driven by AI products, with product revenue up 37% year-over-year and AI continuing to compound the company's advantages.

For the third quarter of fiscal 2027, Snowflake expects product revenue to reach $1.588 billion to $1.593 billion, representing 37% to 38% year-over-year growth, and has raised its full-year fiscal 2027 product revenue guidance to $6.07 billion, representing 36% YoY growth. The company's growth is becoming broad-based across its customer base, with no meaningful concentration in any one sector or in AI-native companies.

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