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FinanceSnowflake shares spike 22% after hours on Q2 beat, AI coding agent growth
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Snowflake shares surged 22% in extended trading on Wednesday after the data analytics software maker reported fiscal second-quarter results that beat analyst expectations. The company posted adjusted earnings per share of 62 cents on revenue of $1.55 billion, surpassing LSEG consensus estimates of 45 cents and $1.48 billion respectively. Revenue jumped 35% year over year. Snowflake highlighted growth from its CoCo artificial intelligence coding agent, which now has 9,100 accounts, an increase of over 2,000 during the quarter. For the fiscal third quarter, Snowflake guided product revenue of $1.59 billion, above the $1.50 billion consensus. The company raised its full-year product revenue forecast to $6.07 billion from $5.84 billion in May and now expects a 14.5% adjusted operating margin, up from 13.5%. As of Wednesday's close, Snowflake shares were up 39% year-to-date, outperforming the S&P 500's 12% gain.
Source report
Snowflake shares jumped 22% in extended trading on Wednesday after the data analytics software company reported quarterly results and guidance that exceeded Wall Street expectations.
Key Financial Results
Snowflake's performance for the fiscal second quarter, ended July 31, compared to LSEG consensus estimates:
- Earnings per share: 62 cents adjusted vs. 45 cents expected
- Revenue: $1.55 billion vs. $1.48 billion expected
Revenue rose 35% year over year, according to a company statement. Snowflake reported a net loss of $191.7 million, or 55 cents per share, narrowing from a net loss of $297.9 million, or 89 cents per share, in the same period last year.
AI Momentum with CoCo
The company highlighted growth from its artificial intelligence coding agent, CoCo, which now serves 9,100 accounts — an increase of more than 2,000 during the quarter.
Upbeat Guidance
For the fiscal third quarter, Snowflake forecast $1.59 billion in product revenue, above the $1.50 billion consensus among analysts polled by StreetAccount.
Management also raised its full-year product revenue outlook to $6.07 billion, up from $5.84 billion in May. The company now projects a 14.5% adjusted operating margin, compared to the 13.5% forecast previously.
Stock Performance
As of Wednesday's close, Snowflake shares had gained 39% year-to-date, while the S&P 500 rose approximately 12% over the same period. If Thursday's trading matches the after-hours surge, it would mark the fourth-largest single-day gain since Snowflake went public in 2020.
Executives will discuss the results with analysts on a conference call at 5 p.m. ET.
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Snowflake shares surge 22% on strong earnings and AI coding agent growth