Snowflake Surges 24% on Earnings Beat While Broadcom Slides on Soft Q4 Guidance

Snowflake led the day's market movers on September 3, jumping more than 24% after reporting second-quarter revenue of $1.55 billion, beating analyst estimates of $1.48 billion and representing 35% year-over-year growth. Product revenue of $1.49 billion grew 37% year over year, marking the company's third consecutive quarter of accelerating product revenue growth. Management raised full-year product revenue guidance to $5.84 billion, implying 31% growth, up from a prior forecast of $5.66 billion and 27% growth, with Wall Street analysts citing enterprise AI adoption as the engine powering the results.

Broadcom moved in the opposite direction, with shares falling after investors weighed the company's fourth-quarter guidance. While Broadcom reported record Q3 fiscal 2026 results, including AI semiconductor revenue surging 221% year over year and a raised fiscal 2026 AI revenue target of $58 billion, gross margin for Q4 is guided to approximately 73%, down from 78% a year earlier. JPMorgan noted that Q4 revenue guidance was in line with analyst consensus but likely fell short of broader investor expectations, tempering enthusiasm despite the bullish long-term AI targets from CEO Hock Tan.

Uber Technologies added nearly 2% in premarket trading after announcing a company-wide restructuring affecting approximately 3,300 roles, about 10% of its total workforce, as the company moves to strip out management layers. Hewlett Packard Enterprise fell while moving in contrast to sector peer gains, even as HPE shares briefly rose 3% in sympathy with broader strength among AI server manufacturers before reversing. Futures on the Dow Jones and S&P 500 were firmer after comments from President Trump that the market would go up.