EnterpriseSNOW -4.37%SEP 02, 2026

Snowflake Q2 prints $1.55B, up 35%, as product growth accelerates a third straight quarter

SNOW jumped 22% after-hours after beating on the top and bottom lines and raising FY27 product-revenue guidance to $6.07B.

BY GRETA REINHART · ENTERPRISE SAAS

Snowflake shares climbed 22% in extended trading Wednesday after the company reported fiscal Q2 2027 revenue of $1.55 billion, up 35% year-over-year, and raised its full-year product-revenue guide to $6.07 billion from $5.84 billion. Adjusted EPS landed at $0.62 against an LSEG consensus of $0.45.

The line that matters more than the beat is the shape of it. Product revenue of $1.49 billion grew 37% year-over-year, marking a third straight quarter of acceleration on a base that most analysts had assumed would flatten a year ago. Net revenue retention held at 126%, remaining performance obligations reached $9.00 billion (up 30%), and Snowflake added 692 net new customers, 32% more than the year-ago quarter.

CFO Brian Robins paired the growth with margin expansion: non-GAAP operating margin came in at 15.3% for the quarter, and full-year guidance on that line moved to 14.5% from 13.5%. Q3 product revenue is guided to $1.588–$1.593 billion, implying 37–38% growth. Consumption businesses rarely raise both the top-line and the margin line in the same print. Snowflake did.

The AI-agent disclosures are what make the acceleration legible. CoCo, the coding agent, passed 9,100 accounts, adding more than 2,000 in the quarter alone. CoWork reached 5,800. These are the workloads driving the consumption curve upward, and management is now willing to itemize them.

“AI continues to compound our advantages, creating a flywheel effect across the business,” CEO Sridhar Ramaswamy said in the release.

For anyone buying AI sales or marketing tools built on top of this data layer, the pricing implication is worth sitting with. A consumption platform accelerating at 37% while its two named AI agents scale into five figures of accounts isn’t a platform whose costs are about to fall. Vendor tools riding that infrastructure will get more capable and more expensive in the same motion. The SNOW-and-HPE preview argued this earnings window would repricing-signal every SMB tool built on hyperscaler data infrastructure; the broader AI earnings gauntlet that’ll price-signal every SMB vendor framed why. The signal, on this print, is unambiguous.

Three quarters of acceleration is no longer a data point. It’s a trend, and the vendor stack downstream is going to feel it.

Sources

About the author

Greta Reinhart

ENTERPRISE SAAS

Greta Reinhart tracks the enterprise software stack from San Francisco — data platforms, AI bundling, seat pricing, and channel checks across the largest SaaS vendors. She files on go-to-market shifts, packaging changes, and quarterly enterprise reads.