Snowflake (SNOW) shares surged roughly 22% to 23% in extended trading after the data-cloud company posted fiscal second-quarter results that topped Wall Street expectations across nearly every metric and prompted management to raise its full-year outlook for a second time this year. The move ranks among the largest post-earnings pops in the company's history since its 2020 public listing.
Revenue for the quarter ended July 31 came in at $1.55 billion, up roughly 35% year over year and ahead of the $1.48 billion analysts had forecast. Product revenue, the metric management leans on most heavily, reached $1.49 billion, growing 37% year over year in what the company said was a third consecutive quarter of accelerating growth. Adjusted earnings per share of $0.62 sailed past the $0.45 consensus estimate, marking a fifth straight quarter of beating Wall Street's profit expectations. On a GAAP basis, Snowflake posted a net loss of $191.7 million, an improvement from a $297.9 million loss a year earlier.
Snowflake raised its full-year fiscal 2027 product revenue guidance to $6.07 billion, representing 36% year-over-year growth, up from a prior forecast of $5.84 billion, or 31% growth. For the current quarter, the company guided to product revenue of between $1.588 billion and $1.593 billion, well above the roughly $1.5 billion analysts had penciled in. Non-GAAP operating margin also widened meaningfully, expanding to roughly 15% from about 11% a year earlier, a sign that profitability is beginning to catch up with the company's rapid top-line growth.
Chief Executive Sridhar Ramaswamy pointed to enterprise adoption of Snowflake's artificial intelligence products as a central driver of the results, telling analysts that companies are increasingly consolidating their data and AI workloads onto the platform to build what he called an AI-ready data foundation. Management said AI products contributed to roughly half of the quarter's growth acceleration, with the remainder coming from core platform migrations and rising consumption among existing customers. The company's AI coding and automation tool, CoCo, surpassed 9,100 customer accounts after adding more than 2,000 net new accounts in the quarter, while a separate product called CoWork grew to 5,800 accounts.
The results answer a question that had hung over the stock heading into the print: whether Snowflake's AI-driven growth reacceleration, which began several quarters ago, could be sustained or was merely borrowing demand from its core data-warehousing business. With growth accelerating for a third straight quarter and margins expanding alongside it, analysts said the report should ease near-term concerns, even as some cautioned that the next several quarters will need to show the acceleration is durable and not simply a pull-forward of spending ahead of broader enterprise AI budgets tightening.
Heading into Friday's session, Snowflake shares had already climbed nearly 40% over the prior three months, meaning the after-hours pop pushes the stock's short-term run further into territory where valuation, not just growth, is likely to become the focus of the next debate among investors.