Snowflake (SNOW) Stock Jumps 23% After Q2 Earnings Beat and Raised Guidance

TLDR

• Snowflake stock jumped over 23% after reporting Q2 adjusted EPS of $0.62, beating the $0.45 consensus
• Revenue hit $1.55 billion, up 35% year over year, topping the $1.48 billion estimate
• Product revenue grew 37% YoY, marking three consecutive quarters of acceleration
• AI coding agent CoCo surpassed 9,100 accounts, adding over 2,000 in the quarter
• Full-year product revenue guidance raised to $6.07 billion, up from $5.84 billion

Snowflake (SNOW) stock surged over 23% in premarket trading Thursday after the company posted Q2 results that beat on both the top and bottom lines and raised its full-year outlook.

Snowflake Inc., SNOW

The stock closed Wednesday up 39% year to date, already outpacing the S&P 500’s roughly 12% gain over the same period. Thursday’s move, if it holds, would rank as the fourth largest single-day jump since the company went public in 2020.

Adjusted EPS came in at $0.62, well ahead of the $0.45 analyst consensus. Revenue reached $1.55 billion versus the $1.48 billion estimate, up 35% year over year.

SNOWFLAKE $SNOW Q2’27 EARNINGS HIGHLIGHTS

🔹 Revenue: $1.55B (Est. $1.48B) 🟢; +35% YoY
🔹 Adj. EPS: $0.62 (Est. $0.45) 🟢
🔹 Product Revenue: $1.49B; +37% YoY
🔹 Non-GAAP Oper Income: $237.0M (Est. $187M) 🟢

Raises FY27 Guide:
🔹 Product Revenue: $6.07B; from $5.84B
🔹… pic.twitter.com/Y5NJOJhpaZ

— Wall St Engine (@wallstengine) September 2, 2026

Product revenue hit $1.49 billion, up 37% YoY. That marks three straight quarters of product revenue growth acceleration, which is the number Wall Street tends to watch most closely.

CEO Sridhar Ramaswamy said the company is “powering the enterprise AI revolution” and pointed to a “flywheel effect” building across the business.

AI Products Gaining Traction

CoCo, Snowflake’s AI coding agent, crossed 9,100 accounts during the quarter, adding more than 2,000 new accounts in just three months. Separately, CoWork expanded to 5,800 accounts.

Snowflake added 692 net new customers in Q2, up 32% YoY. The company now serves 829 Forbes Global 2000 customers.

BTIG analyst Gray Powell called it a “strong beat and raise” and noted that growth is becoming broad-based across the customer base, with no heavy concentration in any single sector or AI-native companies.

Guidance Raised Across the Board

For Q3 fiscal 2027, Snowflake guided for product revenue of $1.588 billion to $1.593 billion, representing 37% to 38% YoY growth. The midpoint of $1.59 billion topped the analyst consensus of $1.57 billion.

Full-year fiscal 2027 product revenue guidance was raised to $6.07 billion, up from $5.84 billion in May. That represents 36% YoY growth and comfortably beats the prior analyst consensus of $5.84 billion.

Adjusted operating margin guidance for the full year was also lifted, moving to 14.5% from 13.5%.

CFO Brian Robins said the company achieved accelerating growth while expanding margins, a combination that doesn’t always come together.

Snowflake recorded a net loss of $191.7 million, or $0.55 per share, in Q2. That’s narrower than the $297.9 million, or $0.89 per share loss, posted in the same period a year ago.

The Q2 fiscal period ended July 31. Executives discussed results with analysts on a conference call at 5 p.m. ET on Wednesday.

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