Snowflake Surges 24% After Q2 Beat and Raised FY27 Guidance Fueled by AI Demand

Snowflake shares jumped more than 24% in premarket trading on September 3 after the cloud data analytics company reported fiscal second-quarter results that sharply exceeded Wall Street expectations. Revenue came in at $1.55 billion, up 35% year-over-year and above the $1.48 billion consensus estimate, while adjusted earnings per share of $0.62 topped forecasts of $0.45 by a wide margin. CEO Sridhar Ramaswamy credited artificial intelligence, saying AI continues to compound the company's advantages and create a flywheel effect across the business.

Snowflake also raised its full-year FY27 product revenue guidance to $6.07 billion, alongside expanded operating margin expectations, citing accelerating customer consumption and enterprise adoption of AI-driven data products. The stock hit a 52-week high in Thursday's session. The CFO acknowledged, however, that AI growth is coming with lower profit margins, a point noted by analysts watching the stock.

A wave of analyst upgrades and price target increases followed the results. JPMorgan lifted its target to $426 from $285, while Deutsche Bank, Raymond James, Morgan Stanley, Citizens, Needham, and Cantor Fitzgerald all raised their targets citing AI-driven growth momentum. Guggenheim reiterated a Neutral rating. A dissenting note came from investor Michael Burry, who called Snowflake overvalued despite the earnings beat.