Snowflake Stock Surges After Blowout Earnings and Raised Guidance

Snowflake (NYSE: SNOW) shares surged nearly 24% in pre-market trading after the company released a fiscal second-quarter 2027 earnings report that decisively beat analyst expectations and included a significant upgrade to its full-year outlook.

Strong Results Defy Cloud Spending Fears

The data-cloud provider reported results after Wednesday's market close that countered investor concerns about a broader slowdown in enterprise cloud spending. Key figures from the report include:

• Adjusted Earnings Per Share: $0.62, well above the analyst consensus of $0.45.
• Total Revenue: $1.55 billion, surpassing the estimated $1.48 billion and representing 35% year-over-year growth.
• Product Revenue: $1.49 billion, a 37% increase year-over-year. This marked the third straight quarter of accelerating growth for the key metric.

Snowflake also demonstrated improving profitability, with its non-GAAP operating margin expanding to 15.3%, up from 11% in the same period a year earlier, according to the company's report.

AI Adoption Fuels Upgraded Outlook

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Management provided a bullish forecast that further fueled the stock's rally. The company raised its full-year fiscal 2027 product revenue guidance to $6.07 billion, up from a previous forecast of $5.84 billion. For the upcoming third quarter, Snowflake projects product revenue of approximately $1.59 billion, topping the consensus estimate of $1.50 billion.

Executives attributed a significant portion of the growth to the strong adoption of its artificial intelligence products. The company stated its AI offerings, CoCo and CoWork, contributed to about half of the incremental revenue acceleration. Customer accounts for these products grew significantly, with CoCo reaching 9,100 customers and CoWork expanding to 5,800 during the quarter.

Market Reaction

The powerful combination of an earnings beat, a raised forecast, and tangible evidence of AI monetization sent Snowflake's stock up 23.9% to $379.07 in pre-open trading. The move pushed the shares well beyond their previous 52-week high of $341.95 and came against a backdrop of a relatively flat broader market, underscoring that the rally was driven entirely by the company's strong fundamental performance and outlook.