Snowflake Raises Full-Year Product Revenue Outlook Following Fiscal Second-Quarter Beat

06:39 AM EDT, 09/03/2026 (MT Newswires) -- Snowflake (SNOW) shares jumped early Thursday as the cloud-based data platform lifted its full-year product revenue outlook and reported fiscal second-quarter results above Wall Street's expectations. Product revenue, which accounts for most of the firm's total revenue, is now expected to reach $6.07 billion for fiscal 2027, representing annual growth of 36%, Snowflake said late Wednesday. The company previously projected the key metric at $5.84 billion, while the current FactSet consensus is $5.99 billion. "Given the strength we've observed, both in our core data platform business and (artificial intelligence) business, we're raising our product revenue guidance for the year," Chief Financial Officer Brian Robins said during an earnings call, according to a FactSet transcript. The company expects to maintain strong growth while continuing to expand its margins over the long term, Chief Executive Sridhar Ramaswamy said during the call. Snowflake's stock spiked 25% in the most recent premarket activity. In an emailed client note, Truist Securities said AI is driving direct monetization and incremental platform consumption for Snowflake, with AI products accounting for about 50% of the recent growth acceleration. The brokerage expects the company to see "sustained growth acceleration" as AI expands its "relevance" and generates new workload adoption. Snowflake's adjusted earnings came in at $0.62 a share for the three-month period ended July, up from $0.35 the year before, ahead of the Street's view for $0.45. Revenue advanced 35% to $1.55 billion, topping the average analyst estimate of $1.48 billion. Product revenue increased 37% to $1.49 billion, exceeding the market's forecast of $1.42 billion. "(The second quarter) marks our third consecutive quarter of product revenue growth acceleration, driven by strength in both our core data platform and a meaningful step-up in AI revenue," Robins said in the earnings release. The net revenue retention rate was 126%, while remaining performance obligations, or RPO, grew 30% year over year to $9 billion, according to the company. For the third quarter, Snowflake projects product revenue between $1.588 billion and $1.593 billion, representing year-over-year growth of 37% to 38%. The Street is looking for $1.57 billion. The guidance implies "a strong case for sustained growth acceleration," Truist said. In July, Amazon.com (AMZN) reported better-than-expected second-quarter results buoyed by robust gains in its Amazon Web Services cloud-computing platform. Alphabet's (GOOG, GOOGL) second-quarter revenue topped market estimates, as the Google parent recorded an 82% surge in cloud revenue.