Snowflake shares surge 23% after Q2 earnings beat and raised guidance

Published Sep 4, 08:07 AM UTC

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Snowflake Inc (NYSE:SNOW) shares surged 23% in after-hours trading on September 2, 2026, after the cloud data company reported fiscal 2027 second-quarter results that exceeded Wall Street expectations and raised its full-year guidance. The company posted revenue of $1.55 billion, up 35% year-over-year and above the $1.48 billion analyst consensus. Adjusted earnings per share came in at $0.62, topping estimates of $0.45. Product revenue rose 37% to $1.49 billion, while non-GAAP operating income reached $237 million, well ahead of the $187 million estimate. CEO Sridhar Ramaswamy attributed the performance to AI-driven advantages and the company's CoWork and CoCo products. Snowflake raised its fiscal 2027 product revenue guidance to $6.07 billion from $5.84 billion and lifted its non-GAAP operating margin guidance to 14.5%. For the third quarter, the company guided product revenue of $1.588 billion to $1.593 billion. Other key metrics included a net revenue retention rate of 126%, remaining performance obligations of $9.0 billion, and 828 customers generating over $1 million in trailing 12-month product revenue.

Source report

Proactive Wed, September 2, 2026 at 1:30 PM PDT 2 min read

SNOW

Snowflake Inc (NYSE: SNOW) shares jumped 23% in after-hours trading Wednesday after the cloud data company posted second-quarter results that beat Wall Street estimates and raised its full-year guidance.

Key Financial Results

Revenue: $1.55 billion, up 35% year-over-year, above the $1.48 billion analysts expected
Adjusted EPS: $0.62, topping estimates of $0.45
Product Revenue: $1.49 billion, up 37% year-over-year
Non-GAAP Operating Income: $237 million, well ahead of the $187 million estimate
Non-GAAP Product Gross Margin: 75%
Free Cash Flow: $83.8 million, below the $104 million analysts had forecast

CEO Commentary

"AI continues to compound our advantages, creating a flywheel effect across the business," said CEO Sridhar Ramaswamy. "CoWork and CoCo are driving transformational outcomes for our customers, while fueling rapid adoption, user growth, new workloads, and overall platform consumption."

Fiscal 2027 Guidance Raised

Product Revenue: $6.07 billion, up from a prior forecast of $5.84 billion
Non-GAAP Operating Margin: 14.5%, raised from 13.5%
Non-GAAP Product Gross Margin: 74%
Adjusted Free Cash Flow Margin: 23%

Q3 Guidance

Product Revenue: $1.588 billion to $1.593 billion
Non-GAAP Operating Margin: 15.5%
Diluted Shares: 382 million

Additional Q2 Metrics

Net Revenue Retention Rate: 126%
Remaining Performance Obligations: $9.0 billion, up 30% year-over-year
Customers with >$1M in trailing 12-month product revenue: 828, a 27% increase year-over-year

"Our rapid pace of innovation, tight go-to-market execution, and operational discipline position us well to capture the opportunity ahead," Ramaswamy added.

Source

Yahoo FinanceNeutral / independent

Original headline: Snowflake shares surge after Q2 beat, raised guidance

Original language: EN-US

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