Overview
- Snowflake reported on Sept. 2 that adjusted EPS was $0.62 and total revenue was $1.55 billion, beating analyst estimates.
- Product revenue accelerated 37% year over year to $1.49 billion and management raised fiscal‑2027 product‑revenue guidance to $6.07 billion from $5.84 billion.
- Company executives said AI workloads explained about half of the growth acceleration and disclosed rapid adoption of AI tools, with Cortex Code in more than 9,100 accounts and CoWork in roughly 5,800 accounts.
- Profitability improved as non‑GAAP operating margin expanded to 15% in the quarter and the firm raised full‑year margin guidance to 14.5%, while reaffirming a path to GAAP profitability by fiscal Q4 2028.
- Markets rerated the stock after the report with a more than 20% rally and dozens of analyst price‑target increases, but elevated valuation and strong competitors such as Databricks and large cloud vendors pose risks if AI‑driven consumption does not sustain incremental monetized growth.