Snowflake stock skyrockets on AI-driven Q2 revenue jump

Snowflake's stock soared by up to 20% in early trading on Thursday following a remarkable second quarter. The cloud-based software provider reported a staggering 35% revenue jump, reaching $1.55 billion. CEO Sridhar Ramaswamy highlighted the company's growth, attributing it to the rise of AI usage among customers. As customers employ AI on Snowflake's platform, they consume more resources, amplifying the business's potential, Ramaswamy explained during the earnings call.

This positive trend, he said, is accelerating the company's performance. For the fiscal 2027 second quarter, Snowflake reported adjusted earnings per share of $0.62. The company's success is primarily driven by the growing adoption of its AI products. AI-powered tools like Cortex, an AI coding assistant, and CoWork, an enterprise chatbot, saw rapid adoption, contributing to roughly half of the surge in growth for the quarter. So far this year, Snowflake's stock has risen by more than 40%.