Snowflake Stock Soars Over 20% on Strong Earnings, Raised Full-Year Outlook

Shares of Snowflake (NYSE: SNOW) surged more than 20% in after-hours trading after the AI data cloud company reported fiscal second-quarter 2027 results that surpassed analyst estimates and raised its full-year financial outlook, signaling strong momentum in customer spending.

Blockbuster Results and Guidance

Snowflake announced adjusted earnings per share (EPS) of $0.62, significantly higher than the analyst consensus of $0.45. The company's performance was driven by robust revenue growth that beat expectations across the board.

Key figures from the report include:

• Total Revenue: $1.55 billion, an increase of 35% year-over-year, exceeding the $1.48 billion estimate.
• Product Revenue: $1.49 billion, up 37% year-over-year. This closely watched metric, central to Snowflake's consumption-based model, marked its third consecutive quarter of accelerating growth.

Looking ahead, Snowflake raised its full-year fiscal 2027 product revenue forecast to $6.07 billion, up from a previous estimate of $5.84 billion. The company also increased its adjusted operating margin target to 14.5% from 13.5%. For the third quarter, Snowflake projects product revenue of approximately $1.59 billion, well ahead of the roughly $1.50 billion analysts had anticipated.

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Market Reaction

The strong report sent the stock price to $369.89 in extended trading, pushing it well past its previous 52-week high of $341.95. The rally was entirely company-specific, as the broader S&P 500 and Nasdaq indices were slightly down during the regular session, providing no market tailwind.

For investors, the combination of a significant earnings beat, accelerating core revenue, and an upgraded forecast provided the validation needed to support the company's premium valuation. The results suggest robust adoption of its data and AI workload services, including its CoCo AI coding agent, which grew to 9,100 accounts in the quarter.

Context and Analyst Sentiment

The post-earnings surge followed a period of growing optimism among analysts. In the days leading up to the report, several investment firms, including Wells Fargo, UBS, and Cantor Fitzgerald, had already raised their price targets on Snowflake, citing conviction around the adoption of AI-related workloads on its platform.