Snowflake Stock Soars After Q2 Earnings, Revenue and Raised Annual Guidance All Top Estimates

Snowflake shares surged in after-hours trading on September 2 after the cloud data company reported fiscal second-quarter 2027 results that beat Wall Street estimates across earnings, revenue, and forward guidance, driven by accelerating demand from enterprises building AI applications on its platform.

The company raised its annual product revenue forecast above analyst expectations, extending a run of upside surprises that began in earnest with its blowout first quarter. Snowflake had already lifted its full-year product revenue outlook to approximately $5.84 billion, implying 31% growth, after Q1 product revenue came in at $1.334 billion, up 34% year over year. The Q2 beat and another guidance raise reinforced that the acceleration is not a one-quarter event.

A central driver is Cortex Code, the company's AI-assisted coding agent known internally as CoCo. Snowflake highlighted rapid adoption of the tool, which had already reached roughly 7,100 customer accounts as of the first quarter and was cited by management as a key contributor to the guidance increases. Customers are turning to Snowflake not only for traditional data analytics but increasingly because they need its data infrastructure and governance capabilities to develop and run AI agents, a pattern that benefits Snowflake's consumption-based revenue model every time a workload runs on its platform.

Snowflake entered the report with its stock up roughly 47% year to date, near its 52-week high of $341.95, after an 88% rally from March through August. The after-hours jump added to those gains, rewarding investors who bet that AI-driven consumption growth still had room to run ahead of elevated expectations.