Snowflake stock skyrockets on AI-driven Q2 revenue jump

Snowflake stock experienced a significant surge of up to 20% in pre-market trading on Thursday, following the company's impressive second quarter performance. The cloud-based software provider reported revenue growth of 35%, reaching $1.55 billion. CEO Sridhar Ramaswamy highlighted that customers utilizing AI on Snowflake's platform are consuming more resources, resulting in a structural multiplier for the company.

During the earnings call, Ramaswamy stated that this "flywheel" effect is accelerating across their business. The company reported adjusted earnings per share of $0.62 for the fiscal 2027 second quarter. Snowflake has been benefiting from the AI adoption trend, with AI products making up roughly half of the growth acceleration in this quarter.

Tools like Cortex, an AI coding assistant, and CoWork, an enterprise chatbot, have seen rapid customer adoption. So far this year, Snowflake's stock has increased by more than 40%.