Snowflake (SNOW) Earnings Date & Reports

Key Takeaways

• Snowflake reported Q2 FY2027 revenue of $1.55 billion, up 35.1% year over year and above analyst expectations of roughly $1.47 billion.
• Non-GAAP earnings per share (EPS) came in at $0.62, well ahead of the $0.45 consensus estimate.
• Product revenue, the company's core metric, grew about 37% year over year, driven by strength in the data platform and accelerating AI product adoption.
• Management raised its full-year fiscal 2027 product revenue guidance to $6.07 billion, implying 36% growth, up from a prior outlook of 31%.
• Remaining performance obligations (RPO) reached $9.0 billion, up 30% year over year, while net revenue retention held at 126%.
• Shares jumped more than 20% following the report as investors rewarded the re-acceleration in growth.

Earnings Context and Why It Matters

Snowflake has spent the past year positioning itself as a bridge between the core cloud data platform and the fast-growing artificial intelligence (AI) economy. After a period in which investors questioned whether AI would disrupt or complement its business, the company's recent quarters have shown AI acting as a catalyst rather than a threat. This Q2 FY2027 report mattered because it tested whether that momentum could continue and whether Snowflake could translate AI adoption into sustained revenue acceleration. With management's guidance raise and expanding non-GAAP operating margins, the results offered a clearer read on the durability of Snowflake's growth story in an increasingly competitive cloud and data market.

Reported Results

For its second quarter of fiscal 2027, ended July 31, 2026, Snowflake reported total revenue of $1.55 billion, an increase of 35.1% year over year and above the consensus estimate of about $1.47 billion. Product revenue, which excludes professional services, reached approximately $1.49 billion, up roughly 37% year over year. Non-GAAP earnings per share came in at $0.62, comfortably exceeding the $0.45 consensus, while non-GAAP operating income was $237 million, representing a 15.3% operating margin.

The company's key operating metrics also showed strength. Remaining performance obligations (RPO), a measure of contracted future revenue, grew 30% year over year to $9.0 billion. Net revenue retention remained solid at 126%, and the number of customers generating more than $1 million in trailing 12-month product revenue rose to 828. Snowflake also highlighted strong adoption of its AI products, with its CoCo coding agent surpassing 9,100 accounts after adding more than 2,000 during the quarter.

On guidance, management raised its full-year fiscal 2027 product revenue forecast to $6.07 billion, representing 36% growth, up from a prior outlook of $5.84 billion, or 31%. The company also lifted its full-year non-GAAP operating margin target to 14.5% from 13.5% and issued third-quarter product revenue guidance of $1.588 billion to $1.593 billion, implying 37% to 38% year-over-year growth.

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Market Reaction and Investor Sentiment

Investors responded enthusiastically to the report, with Snowflake shares surging more than 20% in the trading session following the announcement. The rally reflected relief that growth was re-accelerating and that AI adoption was translating directly into higher revenue, rather than merely adding cost. The guidance raise for fiscal 2027 was a key driver of sentiment, signaling management's confidence in sustained demand. Analysts were broadly constructive, with some reiterating positive ratings and noting that Snowflake has "plenty of room for growth." The positive reaction marked a notable shift from earlier quarters, when investors had questioned the company's valuation and the competitive threat posed by AI-native rivals.

Forward Outlook and Key Factors to Monitor

Following this quarter's re-acceleration, investors will be watching whether Snowflake can sustain its elevated growth rate into the third quarter and beyond. The company's guidance points to continued momentum, but execution will depend on several factors.

First, the pace of AI product adoption remains central. Products such as CoCo and CoWork are still early in their lifecycle, and their ability to drive both new revenue and incremental consumption of the core platform will be closely scrutinized. Second, margin trends matter. Snowflake raised its non-GAAP operating margin outlook, and investors will want to see that efficiency gains keep pace with the costs of supporting AI workloads.

Third, competitive dynamics in the cloud data and AI markets remain intense, with hyperscalers and specialized AI vendors vying for the same enterprise budgets. Snowflake's ability to preserve its net revenue retention rate and continue adding high-value customers will be an important signal of competitive strength. Finally, macro-level enterprise technology spending will influence the broader demand environment. Investors should monitor these factors in the coming quarters without expecting management to repeat the magnitude of this quarter's beat.

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