Snowflake Lifts FY27 Product Revenue Guide to 36% on 3 Straight Quarters of Acceleration
Industry29d agoSecond quarter revenue for Snowflake totaled $1.55 billion, beating analyst estimates of $1.48 billion. Adjusted earnings per share were $0.62 against an expected $0.45, with product revenue climbing 37% year-over-year to $1.49 billion. The company raised its FY27 product revenue growth target to 36% from 31%, increasing the forecast to $6.07 billion from $5.84 billion.
The results marked a third straight quarter of product revenue growth acceleration driven by a step-up in AI revenue and the adoption of CoCo and CoWork products. These tools are used by more than 9,100 and 5,800 accounts respectively, and the company now has 828 customers spending more than $1 million. Non-GAAP operating margin rose 400 basis points to 15%, contributing to a 24% jump in shares in after-hours trading.
Key sources
- SOURCE@ramaswmysridhar“raising our FY27 product revenue outlook from 31% to 36% YoY growth”x.com
- SUPPORT@wallstengine“third consecutive quarter of product revenue growth acceleration”x.com
- SUPPORT@ramaswmysridhar“14,554 total customers on the AI Data Cloud”x.com
- SUPPORT@ramaswmysridhar“CoCo and CoWork, continue to see rapid adoption, now used by 9,100+ and 5,800 accounts”x.com
- SUPPORT@wallstengine“SNOW +24% after a broad beat and strong guide”x.com
- SUPPORT@business“touted rapid adoption of its AI-assisted coding tool”x.com
- SOURCE@tradfi“3Q ADJ. OPER MARGIN 15.5%”x.com
- SUPPORT@stocksavvyshay“RPO $9.0B (+30% YoY)”x.com