Overview
- Snowflake reported Q2 FY2027 results after the Sept. 2 close with $1.55 billion in revenue, $1.49 billion in product revenue (up 37% year over year), $0.62 non‑GAAP EPS, 126% net revenue retention, 692 net new customers, and about $9 billion in remaining performance obligations.
- Management raised full‑year product revenue guidance to $6.07 billion and boosted non‑GAAP operating margin guidance to 14.5%, marking a second guidance lift this year.
- The company said its AI offerings are being adopted at scale, with CoCo (a coding assistant) at roughly 9,100 accounts and CoWork (an enterprise AI agent) at about 5,800 accounts, and management estimated AI accounted for about half of the quarter’s growth acceleration.
- Shares jumped roughly 17% after the results and guidance then fell about 5% on profit‑taking, and analysts including Morgan Stanley lifted price targets as they framed the quarter as evidence of an AI‑driven growth flywheel.
- The market rerating raises execution risk because Snowflake must convert AI adoption into sustained, monetized consumption against competition from Databricks, Microsoft and MongoDB and underlines that future quarters will be closely watched by investors and customers.